Ch :

to -

Pont 3

( Strategic Analysis of

operating scorned
 AKI Activity Based
:

( cost - controller for ABC )

ABM =
Cost Management Application of ABC
)

ABC
ADAM Extension
of
.

other
Acting
Set-up
ppg

Ordering
facilities
Equipment
and
Efficient

Employees
Management

distribution
Effective

Management
of to
continuously improve
value rec'd
by
customers .

cost Ones ease

gmpnae
:

Batch Size

cost Size
smprore Bigger
°
:

Orders
of .

°
Reduce Repair time I Cost .

cost
ABM
analyzes
the
of , ,

,
&
factors .
 ABM
I

Analyse Profitability of
aspect Business
Every of
.
.

I
1-
Weaknesses
Strengths

}
( Addpued
tf
( Value Added ( Non -
Value

A
)

Remade
Enhance -

F
from the
perspective of Customer .

ABI
:
Supplies the Information

for analysis to yield

-

ABE : use ABC

Sfo
.

continuous Improvement .
 ABAMIABM
=

Activity
HI

→
Cost Pool to
scrutinize I

ElkridgeCost Dn .vn/Rate
←
I

set ran
.
⇒
;:÷¥÷÷÷÷÷
~Im
 ABM
Benefits of
-_=
:

Cost -

Reduction V

Resource Utilization v

Rati@atn1Definr.o
✓

Budget Implementation
•

°
Cost

Decision
Making .
 Designing and
Implementing ABM

④
Cost Driver ② Performance
Analysis
Analysis
-

( significant
" -

T Activities .

)
V
x
operational Strategic Based an
Based on
ABM ABM
Expected
cost Time -

Spent
.

Activity Analysis
A

1-

Value Non
-

Value
Added Added
 A Cost -

Driver Analysis
and the
Identification Improving
.

cost
of
&
effectiveness management
activities
Parts

I
r
CEE
Quality of
.

"
Defective
work .

) r

each
qq.cn?in7n#d ( Doing
right HfFgiLagmt

Higher
activity
cooing
operational anagoge ,

customer
operational
Profitability
ABM ABM

Twigfstrategic
-
-

Santini cost
sing Analyse
.
o

of
of any
activity .

"
.

Increasing New
Acquiring /
.

efficiency
I
New Product .

Allocate resources to

activities that lead to Advertising

-

New
-

Efficiency bunching
-

poet .
 B .

Activity Analysis
Goal of Cost Reductions
/ Value
. .
.

Unwanted activities
by Reducing
) and
performed (
NVA
to be
. .
- .

the value activities C VA )

generating
on
focussing

Enhancement
Indispensable
Value Non -
Value
Added Added
I
=

( work not valued

( to

complete
the
by External Internal
process )
.

Customer )
.

t t
Activities should Create waste
Result in
,

ultimately add delay .

value to the
customer .
 ' Non Value
faffed Added
-
.

?
C.
swims

g
}7
"
Yes
Isnuausdi ?
→

a :

←
Cgoods ) materials

Inventory )
held in .

Efficiently →
yes , if usque

for W

more
Performed budgets ,
:

Next
'
.

storing
targets waiting for

Answer
,

Waiting
Benchmarks .

process

specifications
.

Sometimes Activities
Sas
pending
can
,
I :

whether
be YA =
or NVA
=
( products
meets . . .
)

M :
Moving
material
C
from
dept
-

one
.

to

.
)

s Scheduling
"
.

Production f
Setup
Production Detail .
townie factory as

.ge
m⑦e
f80uiib@EEzitgq.m

.
→ m - ma
 C .

Acy
Performance
Based an
significant Based an

Activities
← →

astr
Expected time

④
wi
-

-
.
r
Quality Cycle

Spent
Comparison
of ,

Time ,

8mpwF
Benchmark set r

Productivity
Actual

8mpznmutD
and .
,

( with our Customer femia .

Competitors
. .

( To inform
us our

Provide
mangers scope for
.

operations
 ⇒
of MCTIMCE
( manufacturing C Manufacturing
Cycle Cycle
+
Time ) )
Efficiency .

General Operations of Business I

Concept
a .

FE
th
"
MEH
¥ 38dm off gmm
'

BAE
4h
.

main
on
.

MEE
agar guy defer
:

------¥#
q÷n÷÷÷:
.Ez;÷Er
④¥¥m§
Customer
#

→
→ .
→ -7

se
see

livery

Customer
Time . . .
. . .
Ioda⑧
→ Application MCE in
reducing
of
NVA activities
=

f
°

: .

iffy
.

total
I cellular
°

Concept
of
:

zero
Mfg C0h37

Story
Quality
.

defect
Maine
fontanel
Any#vA
or
waiting
.

9nspedzd.me
Time I : Concept of
JIT
Can 3)
④
→ Time
INCE =

Processing
born
-
-

loom
Time
I Mfg Cycle .

C VAT NVAT)
Value Added ✓
( Perfect once =
1 ie .
all

activities ?

MCE .
.
.

means C so HA )
. .
. .
 Doctor Eaample "

5
Patient →

±⑤
Far
;÷f
Tua
i

:÷:¥÷÷i:
treating
Tasks ) Doctor )

TA
- a
I
VA
NVA ie .

15 ←

Minimizing TO FATWA
'

thrice Time allows

-
.

Do

.
 Practical -

Sums
=

⇒
w¥
.
.

D MCE ( Mfg Cycle )

Cal
of Efficiency
.

Proassinglime = 201
Mfg cycle .
Time
24
C.PT/QTtMTt WT

t I
=
11.672
=
 Nfehoiy :

÷
1-

Keyboard

Customised ftandarised

piano
I
it
Subcontract

Ohdsot lot .

=
 3
Trade et
nay
-

Budget

td2

:
I 900 410%0
"
.

fates I 00,00
 ABB
✓
f

✓
FBI
taint
Analyse by

fma.SIIY.ir
- .
.

applicable

✓
 Q 6-
Tweed :
Solution :

① Birdy .

cost Doin Soft -

fresh
-

Ready to

Activity .

sale prinks
-

Drinks Eat food .

72,000 90,000 72,000

Ordering
.

Cp O
.
) (4500×16)

4100 53,300
246,000 82,000
Delivery .

. (4100×60)

Shelf 15750 178500 97650

.
logo
Stocking
( perms

Customer
g 40500 31140 94500
Geppert

Ordering
.

Deli 381,300
)
=

Shelf :
zgfgo
buff
'

:
446400
 ID In case
of
a
single
having
base will
,
ie .

cogs ; we

be able to the
not
charge
cost with allocation
proper
cost driver approach .

using
In case ABB all activities
of ,

and based
are
identified charged
's
on
conswmp by the
product .

SD FD RTE

Batch
'

30779
Ordering
a
°
, .

Level '

I
°
: Batch 64.521
(
.

Delivery Level

I
'

segmenting
:
unite
.
customer
:
Chet ( I
Support Level
 iii ) r

89,281 71,42T
446400771,425
Ordering
•

(450×8.4%596 C
4×4%507*20
→ 16

406
Delivery
.

④ ④ ②
g-

232,l③
.

✓ 234000
,

⑧ i⑨ .
 10,000 u

Igt
noooo

:&
:p
¥%p
¥730
Cay sap
:
A
ammo
T Increasing

Estoy
-
 Rs
1 order
5001 deny or
-
-

←!
lost .

"
go.geof
.
⇒ per one

-
2o7s

⑤ got x soo

Rs .

10,000
.

cost * sooo
Only
cost
Str tooo ✓
I 30€
 ⇒
A I

I
¥⇐¥⇒Aqf
Shishu Ifs
poof sofsh
.
. .

Sm@
 t
MC
E/m#

¥9
MME

Isan

I
money more Moen
.

rd got HE
asthma
4M€ .

Id say

fine
MEI
A a

KID
a
a a

sing
time
Receipt of Mfg .
Team Mtg Mfg
.

offer
the
order Complete
31 goin
order sci
.

W Order
#
.

CDispatch

mamfII.LV
'

I process
setup
'

begins
Recept
.

waiting
.
-

we
going
"

time
Mtg .

Cycle

C SD )
=

todays :

Customer Response fine Igoe

.

Time
 'm

Mahnke
Cycle Value-added

:÷n -4dm
Efficiency
10
Days
.

!*
( cycle time .

a .
⇐

@
At NVA
) Time

Gota Time
)
 '

?
6-
0¥
Act :
CDR
§ff¥ ¥9 RTE
fed
-

=
saris =
-

Ordering 4500 72000 90000 .

72000
f3④
(4500×16) Choosing
zehcLjpor@cnroookqEaooook3so.g
4100
.

Delivery
@oox60)

Shelf lost
.

Gosoxas
Ste
)
customer
g
.

Support (450×9)
 costars

⑧
Ordering

Es Ed ME
I
:

4482 4464

¥i¥t÷
(4500×0.996) (4482×0.996)
A
72N
Cost Drin
and
gory

e-

see

:{I .mu/socn-O
.

I
 on
=
.
.

Jia =

Statement Direct Product

of
Profitability
.

Particulars Buttery Fyffe II .

84 26
Sp 42

① Pinchas 76 34 22
price
8 8 4
.

⑦ Indirectness
2.0625 30727T

:L
① 7455
wareho.us#..cwwD

qrosspH-hp.in
-0
Retail Store

o÷÷÷
::: .

IDC
per @ 90.38 56.06 86-65

of cnn.tt/m3
÷ No
.

12600 4032 2880

unit
⑦
lpcf 0.007 0.019 0.030

70993 7.986 3.97

Direct Pdt profit .
 WE
"

Warehousing
Specific Reforged
fumed
.

cost

:(
.
.

CICTBJTIW)
-

-1133)
CIC
Labour & zzooo
-

Staff
.
:

f6⑧
152000
Refnrigshc
:
.

€455
Nfaknjdegfh 28000
-
.

25,000in
Cisneros
Total Cost :
55,000 152,000

?
Vm%?g,§ods : 49000M

TIFFT
1.36

57.455
>
Cost
farm :

Time wh
month
in
'

per
455
⇒ )
xlo5m⇐
200625
FN
xo.sn
-
3.7275
Ic
.

:
 WE Retard Store cost
"

General Refxigorh
Labour related

33,000
' -

Refrigerate
-

109,000

Other costs 47,000

Total lost 80,000 109,000

Volume
of
÷
25,00053
49000nF
m3
goods

Cost m3
./
per 2 4036
month
goods
Time in

retail story
BJ :
6036 (21--4.36) # =
6036

FN 2
:

2 4
x
=

IC :
6036 x 1 =
6.36
wog Transportation ( post
Normal Van Refrigerated

( FN ) Van .

Cost / Trip Rs .
3200 B. 4900

?
.

÷ Volume of 6am 64ms

Van

cost
76.561ms
.fm?p3pw5o/m
'
.
 wtf
"

calofuntk.im#are
BE FE II
No
of Cartons
40
.

as 28
µ3

)
x No items x 30 144 72
of
.

Cashen

)
No of
units
28043
.

=
126001ms 40321ms
MT

WEI Head
office
costs are not

included in
Specific product profitability
in nature
general
as are
.

they
 East
OY Golden
.

- .

Customers .

A B X Y
1000 1000 1000 1000
List GP

① Discount
251 251 .

201 .

201 .

Net

Cost Pdt Goo 600 Go Goo

-

Ault f pdt -

150 150 20 20

75075080800-0
Noggins 2500g 9209
x
1950g 8h00
.

( No Purchase Order
of
.

hobs (50×500)
× No
of
.

purr .
) order . )

Total -

3750,000 2925,000 1840,000 1629000

contribution
-

-
 ←
Customers A B X Y

Total -

Couth 3750,000 2925,000 1849000 1620,000

⑦
Assignable
costs
( Admin , Mkty ,

Dist
'D
=

Border Processing 65,000 84,500

29g 351,000
ooo
-
lost ,

(1300×50) (1300×65)

ID Customer
Visit 74000 111,000 185,000 16280
cost Catano )

)
iii
Ordinary
350,000 40,000

9900010,000
Deli .
.
.
.
(200×45)

39000 90,000 1059000399000

f)
Special Del . .

Net profit 34910002539,500 706,000 316,20

units 25000 195W am 810

No
÷
of
.

profit I Hob
unit .
13964 13023 76.743904