Costs simulation overview

SyReach Process includes a powerfull costs simulation engine, that allows you to understand how products and services costs are built, step by step.

You need to provide a few elements, and the software compute each activity and resource cost, up to the final activities and resources.

This is a powerfull tool to:

  • set a commercial price for your products and services, and
  • focus on low value / high costs activities to improve their efficiency

 

The computation method

Costs computing are based on simple and understandable rules:

  • Each activity consumes costs of used and consumed resources
  • Then activity cost is allocated on produced or transformed resources

Users of the Activity Based Costing (ABC) method will recognize this schema, which was improved in SyReach Process to provide a more flexible and ergonomics solution.

 

Ergonomics

Multiple tools provides you a convenient way to input required elements:

  • Initial resources direct costs: This is the acquisition cost of parts, or employees charges.
  • Indirect costs can be allocated on other resources. For example, electricity and taxes can be allocated on each company department, based on an allocation key
  • Consumed and produced quantities can be provided in different ways: In a dedicated form, or directly in the process diagram.

 

Quick and understandable results

As a result of cost simulation, SyReach Process will provide you, for each activity:

  • Current cost: Total cost of the activity, at this step of the process
  • Consumed cost: This is the costs of consumed or input resources
  • Support cost: This is the cost to transform or produce the output resources

and for each resource:

  • Current cost: The total cost of the resource, at this step of the process
  • Direct cost: The cost of production or acquisition of the resource
  • Indirect cost: The sum of indirect costs allocated to this resource

Finally, a value analysis form presents each activity cost with its customer value, so that you can decide what are the first activities to improve.

 

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