Evaluation of business processes using probability-driven activity-based costing

The design of business processes often ignores detailed consideration of service cost. With competitive market pressure, this has become a key factor for the service sector. The ideas discussed in this paper are a result of research into automating the re-engineering of business processes. This paper presents a methodology for estimating the cost of a process, crucial to the evaluation of the process, using a novel variation of activity-based cost estimation. The majority of the research in this project has concentrated on the service sector and these types of processes are used as examples.

[1]  John C. Lere,et al.  Problems evaluating sales representative performance , 2003 .

[2]  Ken Lunn,et al.  Business processes--attempts to find a definition , 2003, Inf. Softw. Technol..

[3]  A. John Pendlebury,et al.  Business Process Reengineering: Breakpoint Strategies for Market Dominance , 1993 .

[4]  Martin J. Shepperd,et al.  Estimating Software Project Effort Using Analogies , 1997, IEEE Trans. Software Eng..

[5]  R. M. Wyskida,et al.  Cost Estimator's Reference Manual , 1987 .

[6]  Robert Padulo,et al.  Business Process Reengineering: BreakPoint Strategies for Market Dominance , 1994, J. Inf. Technol..

[7]  John W. Hackney.  Control and management of capital projects : dynamic estimating, control, and management by owner corporations of the cost, time and value of engineering-construction projects , 1965 .

[8]  D. Hicks.  Activity-Based Costing: Making it Work for Small and Mid-Sized Companies , 1998 .

[9]  Rajkumar Roy,et al.  A coding mechanism for business process optimisation using genetic algorithmS: Initial thoughts , 2006, Artificial Intelligence and Soft Computing.

[10]  B. M. Lall Nigam,et al.  Cost accounting : principles and practice , 2000 .

[11]  Hamdi A. Bashir,et al.  Models for estimating design effort and time , 2001 .

[12]  James J. Kline.  Activity-Based Costing and Benchmarking: A Tandem for Quality-Oriented Governments , 2003 .

[13]  Gary Cokins,et al.  Activity-based Cost Management: An Executive's Guide , 1997 .

[14]  A. A. Aderoba.  A generalised cost-estimation model for job shops , 1997 .

[15]  Gary Cokins,et al.  Activity-Based Cost Management Making It Work: A Manager's Guide to Implementing and Sustaining an Effective ABC System , 1996 .

[16]  W. T. Chan,et al.  Feature-based cost estimation for packaging products using neural networks , 1996 .

[17]  Kenneth Humphreys.  Standard Cost Engineering Terminology , 2004 .

[18]  Falconer Mitchell,et al.  Activity Costing for Engineers , 1996 .

[19]  Rajkumar Roy,et al.  Cost engineering: why, what and how? , 2003 .

[20]  Sofia Börjesson,et al.  What Kind of Activity‐based Information Does Your Purpose Require? , 1994 .

[21]  Peter Chalos.  Managing Cost in Today's Manufacturing Environment , 1992 .

[22]  L. A. Smith,et al.  Estimating: The input into good project planning , 1985, IEEE Transactions on Engineering Management.

[23]  Brian H. Kleiner,et al.  Activity based budgeting , 1995 .