O5.004 (Processes Under Control) BURDENING EVERYTHING WITH TRUE COSTS - WILLIAM EASTMAN
I know this is dreary stuff until its done then suddenly you look like a genius.
When you think about getting processes under control it is not a difficult concept. You are going to make visual maps of all major processes, then look for improvement opportunities. These usually take the form of fewer steps, less interactions and therefor improved quality and reduced cost.
Once you are comfortable with how things will be done going forward, the next step is to burden every step with true cost.
This is critical. Get it right and you will achieve too critical results at the same time - improve quality while reducing cost, and have an accurate picture of what are your most profitable products & services, and the most profitable customers.
WHAT YOU NEED TO KNOW
WHAT YOU NEED TO DO
ABC - Activity Based Costing only works when your processes have been mapped, and only worth the effort after improved.
Follow the "Processes Under Control" Series all season.
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