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.
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.