Activity Costing

This category contains 8 posts

Removing cost is not the same as adding value!

I had an interesting e-mail from a reader who had enjoyed my article on Measuring Process Value-add and sharing an example where their organisation had achieved some cost-savings, but questioning what had happened to value. The situation was this: An internal Travel Department has to reduce headcount and its staff working hours. The solution is to pay … Continue reading

The challenge of income diversification for the Third Sector

My colleague Julian Lomas has written an interesting paper on the challenges facing Third Sector organisations as they have tried to diversify their income streams since the start of the economic downturn.  So many charities had become totally dependent on funding from the public sector that when the “plug was pulled”, they were in serious … Continue reading

Value and Value-add: what are they and how can you quantify them?

Today I’m preparing some workshop handouts for a client where we’ll be looking at the concepts of value and value-add. Every activity in a process (or a project) either adds value, or is waste. The aim of any Continuous Improvement initiative (be it Lean, 6 Sigma, TQM, or whatever) is to remove waste and increase … Continue reading

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