Most organisations know their departmental costs well, through their budgets. However the costing of cross departmental processes is very difficult to assess without using Activity Based Costing (ABC).

Rough-Cut Activity Based Costing (R-ABC) is a fast, auditable method of quantifying process costs of the current process for delivering a service. From this basis, BPR improvement gains can be predicted, targeted and then assessed after implementation.

ABC is therefore an excellent tool for informing both the backward looking and forward looking Annual Efficiency Statements (AES) and targeting BPR effort for efficiency improvement.

Underpinning this approach and methodology is a unique R-ABC model and Benefit Realisation application which Azolve, in conjunction with ValueAdding have developed. Service processes and activities are defined, uploaded into the application and each activity is categorised into Value Adding, Sustained Value Adding and Non Value Adding. Cost drivers are also identified and stored within the model, so as time and costs are allocated to activities across each service, we are able to rapidly and accurately identify the opportunity for efficiency savings.

With this information, when we look to automate processes using our streamlining software, we can target the areas where value can be realised.