Products and Services - Multi-dimensional business model

Detailed description of multidimensional Business Model

The aggregated entity accounting costs -the business-unit we are focusing on- are typically decomposed by cause and effect drivers resulting in a complete workplace cost, which in turn is the decomposed via the activity time analysis used as a driver. This activity time analysis is either based on a educated guess, based on interviews with your department heads, or taken from Time studies available and or alternatively taken from a video analysis process-the most powerful way to understand what is being done and what the final activity costs of doing so will be.

The SGA costs-the overhead costs-are part of this process and they are either assigned to other services or the products they belong to or to the customers using your services. Activities are typically grouped and categorized for a value added value stream analysis. At that point you already clearly see where and for what kind of activities you spend your money. And you immediately have the complete cost picture of the added value and non-added value activities in front of you.

Our multi-dimensional simulation capability applied to those drivers you are in control of, allow you to immediately change the whole scenario at once and see how your costs and your time necessary to carry out various processes could be changed. This can then be used to reassign your resource costs and you can come up with a new FTE number necessary for your operation based on the assumed changes.

The whole a multi-dimensional network of activity costs, departments, lines will be further decomposed and assigned to their respective products, interim products manufactured in the various lines. Assignment drivers used in the process of manufacturing can be many fold-time on unit is one of the often used drivers and are typically taken from the data warehouse or any equivalent database available. The customer based or channel related activities assigned to the customers by the number of the various activities, e.g. the numbers of orders or the number of customer visits, just to name a few. The relationship between the customer dimension, including the activity costs is typically assigned to the product by the sales table. The resulting multi-dimensional costing model difference with the appropriate revenue model in the same dimensions generates profit in all available dimensions. It is from here that you can run all the necessary performance measurements like a WhaleCurve and the like.

As one can see, the multi-dimensional business modeling process of manufacturing is completely integrated into the full customer profitability process.