Calculation and Allocation of Complexity Costs Using Process Data Mining

Over the last years, manufacturing companies extended their product portfolio and derived numerous variants of their products. To make strategic decisions regarding the product portfolio, it is essential to know the costs for each product and each product variant. The exact allocation of the indirect costs in a company to the products that cause them is thereby often not possible. Existing methods, such as activity-based costing or process costing, aim for a cause-related allocation of costs, particularly indirect and overhead costs, to products. Because required data for the cost model has to be collected manually, existing approaches are extremely time consuming, costly and do not represent the current cost status. The increasing digitization and use of business information systems in companies provide new capabilities to get cost-relevant data faster and increase the timeliness of the cost calculation. In this paper, a method to calculate and allocate the complexity costs to related products is provided. The method makes use of data in different information systems which is analyzed and structured by process data mining. Thus, the effort for the calculation of complexity costs should be decreased and the transparency and timeliness should be increased.

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