Project Description

Process Modeling and Activity Based Costing, MHC-1034

Course Benefits
  • Use IDEF0 and ABC to analyze core business processes.
  • Understand the role of IDEF0 Activity Modeling in building ABC Models.
  • Learn how Process Mapping is used in conjunction with IDEF0 to define a complete Process view.
  • Learn the basics of conducting an IDEF0/ABC study.
  • Learn how to use process mapping as an effective analysis tool.
  • Exercises will provide a “hands-on experience” in developing and analyzing Activity Models and Activity Costs.

Today, throughout both the Commercial and Federal, State, and local government sectors, change is inevitable. Performance Improvement is the watchword. Budgets are being slashed at all levels. ERP systems are being installed. Business Process Management & Reengineering (BPM&R) has been used very successfully as a means to improve an organization’s performance. Reengineering is defined as the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in organizational performance. It’s an exciting philosophy that encompasses many, if not all, of the improvement concepts and techniques that have been used over the past 50 years, including such areas as methods improvements, TQM (incremental process improvement), Six Sigma/Lean Innovation, performance measurement, business process management (BPM), productivity improvement, as well as others.

IDEF0 Modeling is a structured activity modeling technique focused on defining the various decisions made and activities performed in the creation of an organization’s products or services. It is essential in understanding “What” work is being done in the organization, versus “How” that work is performed. IDEF0 Model analysis aids an organization in determining what activities it should, and should not, be doing, thus focusing it on the “Right Things”. In addition, the course discusses how Process Mapping can be integrated into Process Analysis, including an overview of the latest Business Process Modeling Notation (BPMN) specification. Activity Based Costing (ABC) is a management accounting system that accurately links the cost of products and services offered to customers with the consumption of valuable organizational resources. Using conventional government accounting systems, you will never (unless by luck) accurately identify the costs of your products and services or the cost of the activities that produce them. ABC is an essential technique in understanding the true costs of your business processes and how to make them more cost-effective.
This course is designed to provide the student an understanding of how Activity Modeling and Activity Based Costing/Management is applied in an organization as part of the Innovative Management FrameworkTM (IMF) methodology. The IMF was created from the Framework for Managing Process Improvement methodology, originally developed by DoD (which forms the foundation for the entire BPR Certification Program training series). Activity Modeling, and Activity Based Costing are critical in determining the cost of activities during a reengineering or ERP efforts or Commercial Activities review. The course is specifically designed for individuals currently or soon to be involved in any of a number of business transformation efforts such as a Business Process Reengineering (BPR), Lean Six Sigma, Enterprise Resource Planning (ERP), Functionality Assessment (FA), OMB A-76 (Commercial Activities) project, or organizations going through significant budget cuts; or those who need to know how to implement such projects or the aftermath of budget reductions.
  • An Overview of Process and Activity Modeling.
  • Using IDEF0 to define an organization’s activities.
  • Using Process Mapping using the Business Process Modeling Notation (BPMN) as a tool for analyzing activities.
  • An Overview of Managerial Accounting.
  • The Principles of Activity Based Costing/Management (ABC/M)

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