We should use the Controlling System as a Game. 15. November 2018 advanced profit control all rights reserved

Transcription

1 Success Complexity has needs a System a System We should use the Controlling System as a Game 15. November 2018 advanced profit control all rights reserved

2 Agenda for the next 30 minutes 1. About our vision 2. Why strategy is so important? 3. 8 Steps to activity based costing Gender For the sake of simplicity the masculine form is used throughout this presentation, but should be taken to refer to persons of both genders. 2

3 Data protection Our technology is being used in various companies. The privacy of our clients is very important to us! We have carefully selected information/data from a number of clients. We have changed the figures, names and departments used to avoid any possibility of comparison. 3

4 Areas of apc expertise advanced profit control, supports companies in strategic and operational issues from design to implementation; including costs and performance management software Greko. Strategic & Operational Controlling Collecting information for making HQ decisions Strategy development - Market needs - Business models - Processes & organization Strategy implementation - Based planning & analysis - Self monitoring instruments in orga units Planning, control & variance analysis - People & processes - Business-simulation apc toolbox Greko - Greko - process compliant - Cash - cash mgmt. 4

5 1. About our vision Empower controllers to understand the whole enterprise system Together with the controllers, we develop a tailor-made controlling system for maximum quality and speed We support all controlling processes with tools We always pass on our full know how to our clients We do not want to reinvent everything, for this we have cooperation's with partners like: 5

6 Roadmap Balanced Score Card Finance Costumer / Market FS1/19 ROI FS1/19 DB FS1/19 CM 2 FS1/19 Turn over C/MS1/19 Product acc. C/MS1/19 New Product K/MS1/19 Web Shop FS1/20 ROS FS1/20 Cost & Price Check C/MS1/20 New Model of Sunglasses C/MS1/20 social media FS1/20 Profit C/MS1/20 Leads C/MS1/19 reorder % Process FS1/21 DB FS1/21 ROI +% C/MS1/20 New Market C/MS1/20 CEE Groth PS1/20 Process PS1/19 CIP FS1/21 Cost Saving -5% C/MS1/21 Reorder PS1/20 Process Analysis PS1/19 KVP C/MS1/21 Facebook C/MS1/21 Facebook PS1/20 TQM PS1/20 Process PS1/20 KVP FS1/22 Profit FS1/23 ROI PS1/21 ISO Norm C/MS1/22 Communica tion PS1/21 CIP PS1/21 ERP MS1/20 Leading Skills MS1/19 human resource development FS1/23 Turn over MS1/19 Employee Satisfaction Employee Potential C&M/23 P/23 PS1/22 Logistic MS1/21 Personnel MS1/20 employee survey Vision 2023 MA23 MS1/22 R6D Skills MS1/21 Bonification MS1/20 Sales Training MS1/19 Employee survey

7 8 steps 1. Sales planning 2. Structure data 3. Planning of cost centers 4. internal activities allocation 5. Cost Object accounting 6. Plausibility of planning 7. Actual statement of accounts 8. Analyzes & evaluations 10

8 Sales Target 13

9 Turnover from 2019 to 2023 in TEuro 14

10 8 steps 1. Sales planning 2. Structure data 3. Planning of cost centers 4. internal activities allocation 5. Cost Object accounting 6. Plausibility of planning 7. Actual statement of accounts 8. Analyzes & evaluations 15

11 Cost Allocation Cost Type What costs? Direct Costs Indirect Costs Cost Centers Where? Cost Objects For what? CC CC CC CC CC AU 01 AU 02 AU 04 AU 05 AU 06 Product Costumer Process View 16

12 bring structure into your company KST510 Water I KST990 ramp sale KST915 Key Account KST150 IT KST130 Payroll KST120 Bookkeeping KST520 Water II KST920 Marketing KST900 Sales KST300 Purchase KST105 Assi. Mgmt. KST100 Management KST200 Building KST800 Logistic & Dispo KST220 Forklifts KST290 Houskeeping KST560 Laboratory KST500 Production KST810 Packaging KST320 Storeroom KST210 Electricity KST610 Glass Panel KST530 Filtering KST320 Shipping KST400 QS KST217 compressed air 40 KST212 Heater KST216 compressed air 8 KST630 PET Line KST213 Water KST650 Blow Molding Machine KST540 Water Storage KST550 Cleaning in Place 17

13 8 steps 1. Sales planning 2. Structure data 3. Planning of cost centers / activity unit 4. internal activities allocation 5. Cost Object accounting 6. Plausibility of planning 7. Actual statement of accounts 8. Analyzes & evaluations 18

14 3. Planning of cost centers / activity unit We show a possibility to plan cost centers/activities We take as an example the cost center Bookkeeping with all activities We work with planning support for the costs and capacities of personnel planning First, we plan all the cost types of a cost center on the first activity, and then we split the costs down to the individual activities 19

15 Cost Center 20

16 Cost Center 21

17 Cost Types Primary Cost Types Secondary Cost Types 22

18 23

19 Detail Personnel Planning CC120 24

20 25

21 Planning Primary Cost Types We differentiate among the cost types between: 1. primary and secondary 2. proportional and fixed 3. can be influenced and not influenced and we must always look at the cost in terms of the service provided. 26

22 Planning Primary Cost Types We differentiate among the cost types between: 1. primary and secondary 2. proportional and fixed 3. can be influenced and not influenced and we must always look at the cost in terms of the service provided. 27

23 8 steps 1. Sales planning 2. Structure data 3. Planning of cost centers / activity unit 4. internal activities allocation 5. Cost Object accounting 6. Plausibility of planning 7. Actual statement of accounts 8. Analyzes & evaluations 28

24 4. internal activities allocation the centerpiece of activity based costing is internal cost allocation Planning the secondary cost types CC sender and receiver - who needs my services? Beware of this information fore cost-cutting Output of the Activity Units of the Cost Center 29

25 Cost Allocation Cost Type What costs? Direct Costs Indirect Costs Cost Centers where? Cost Objects for what? CC CC CC CC CC AU 01 AU 02 AU 04 AU 05 AU 06 Product Costumer Process View "I want to be measured, so I can show how hard I am working...! 30

26 Internal Service Charge 31

27 32

28 The Question is - How do we work out the Activity Units of a cost center? 33

29 Processes - Achtivity in the CC120/1, 2, 3 34

30 Processes for the 1 st Activity Unit ,72 49% 1. This list helps the cost center manager for resource planning. This is the only way he can exactly determine the personnel requirements. 2. How many departments work separately on these processes? Business Development Department, Process Management, Information Technology, ERP System, Quality Assurance, Cost Accounting 35

31 Check the Attendance Hours of the CC120/1-9 36

32 Output of Processes at a Activity Unit 37

33 8 steps 1. Sales planning 2. Structure data 3. Planning of cost centers / activity unit 4. internal activity allocation 5. Cost Object accounting 6. Plausibility of planning 7. Actual statement of accounts 8. Analyzes & evaluations 38

34 5. Cost Object accounting Planning the secondary cost types CC sender and receiver - who needs my services? Be aware of this information for cost-cutting Output of the Activity Units of the Cost Center 39

35 40

36 8 steps 1. Sales planning 2. Structure data 3. Planning of cost centers / activity unit 4. internal activity allocation 5. Cost Object accounting 6. Plausibility of the planning 7. Actual statement of accounts 8. Analyzes & evaluations 41

37 Innovative aspects with activity based costing Data Source Data Processing Financial accounting Wage accounting Material management Store Operating data exchange ERP Performance Measurement Costs- & Performance Management RC Reporting Reporting Fix format Reimport to preceding systems 42

38 Data Source Finance- BOOK Financial Accounting ODC Activity input Schedule of Assets Inventory T-Systems Telephone charges Mobile Invoice Cell phone charges ODC operational data collection New orders cost centers SAP, NAVI, etc. New orders & cost centers Cost- & Performance management Get all remaining data form Excel * machines hours * Number of customers * etc. HOST Mainframe expenditures 43

39 Easy Data Import with HQ & Speed 44

40 8 steps 1. Sales planning 2. Structure data 3. Planning of cost centers / activity unit 4. internal activities allocation 5. Cost Object accounting 6. Plausibility of planning 7. Actual statement of accounts 8. Analyzes & evaluations 45

41 8. Analyzes & evaluations Overview of all details From the cost type to the cost center My favorite list for activity Rates Deviation Output of the Activity Units of the Cost Center VIP Optics The Friend of the Boss 46

42 Actual Management Result Accounting 47

43 My Favorite List is: Activity Rates Deviation 48

44 Target - Actual Analysis CC120/1 49

45 Analysis CC120/1 Costs Activity Variation ,- Consumption Deviation 3.851,- Planed Costs ,- Actual Costs ,- Target Costs ,- Fixed Costs Coverage 88,5% Planed Fixed Costs 8.635,- Actual Fixed Costs 6.527,- Performance Actual Bookings Planed Bookings Planed Costs + Activity Variation = Target Costs / Target Costs + consumption deviation = Actual Costs 50

46 51

47 52

48 that's the old way 53

49 that's the new way 54

50 Activity Based Cost Cost Rates Quantity Structure Cost Center Planning Internal Service Charge Cost Types, Cost Units Project Costs Marketing Market Observation Risk Analysis Customer Value Analysis SWOT Product Development Product/Market-Portfolio Core Competences Calculations Pre- & Post Calculation Item List Work Orders Target Contribution Margin Direct Costs Add. Charge for Risks Overheads Selling Prices Deviation Strategy Mission/Values Vision/Goals Strategies Resource Potentials Learning Curve Side Conditions Measures Management Panorama Working scenario: Managing Director at the Desk... Budgeting Planned Volume Sales direct Costs Contribution Margin Process Costs CM II Overhead Costs Earnings Extend Capacities Capital Expenditure Budget Profitability ROI Discounted Cash Flow Payback period Profit &Los Simulation of the strategy +/- Profit Organization Change Employee Coaching Technologies Know How Functional Organization Commitment to Targets Management by Objectives Management by Delegation Planned Measures Balance Sheet Fixed Assets Current Assets IT Architecture Orders Processes Stock &Simulation Procedures Communication HR Recruiting Company Academy Management System Train the Trainer Employee Program MbO Modell Team Bonus Equity Capital Liabilities 55 Cash Flow Budget/Actual Cash income - operational expenditure = (+/-) Surplus Working Capital Liquidity Current Ratio Pay Back Time Equity Ratio

51 56

52 Activity based costing is a leadership philosophy... it is not just a cost calculation The management gets much more confident Much more security in pricing and calculations High motivation among employees - leadership system Employees get the attention The corporate culture attracts new employees There is a positive learning curve The achievements can be measured The profits enable innovation 57

53 Currently under Development IBCS - Power BI Analysis in Zebra 58

54 Power BI Analysis in Zebra 59

55 Power BI Analysis in Zebra 60

56 1190 Vienna, Raffelspergergasse 32, Austria Phone: , Fax: Skype: apc.consulting advanced profit control all rights reserved 61