"Our activity based costing models create an understanding on how your daily activities affect your cost and profitability."
Finance and Business Director, King County
Cost of processing invoices
After the completion of the different ABC models, detailed data to support decision making was generated. The results from the Finance and Business Operations Division model showed meaningful outcomes related to the unit cost of invoice processing.
Three types of unit costs were generated: Cost of processing invoices with errors, cost of processing manual invoices, and cost of processing electronic invoices.
The cost of processing invoices with errors was more than 5 times the cost of processing the other two types of invoices. As a result, specific actions were taken in order to reduce the number of invoices with errors and the overall efficiency of the department improved significantly.
Cost of transfer station activities
The Solid Waste ABC model generated detailed operational activities related to the work performed in each of the 8 transfer stations, the landfill, and the administrative functions of the department.
The cost of the transfer station activities were benchmarked among each other in order to get a better understanding of the differences in performance and asset utilization. The average unit cost per ton transferred varied significantly across transfer stations.
The KCIT, Department of Assessments and Jail Health Services models were each created according to the specific needs of senior management and provided new information for better decision making support.
The KCIT model detailed the cost of different services provided to internal end users as well as the cost structure of resources needed to support the services. This information provided KCIT management with the necessary information to improve the customer/service mix as well as to improve the resource deployment by type of service.
The Department of Assessments model provided the cost of detailed activities by department and showed redundant work as well as manual work that risked the integrity and efficiency of data management.
The Jail Health Services model included cost by patient type, services provided, and detailed activities performed by the agency’s departments. Idle cost as well as non-value added activities were identified and recommendations were provided to improve performance and effectiveness.
What our customers say
"Implementing Prodacapo was a strategic decision we made to respond to the new market conditions for the healthcare sector in the Netherlands."
"At the early phase of the project, some of the departments were quite hesitant in participating, but as soon as we were able to present the first results of our project the doubtfulness was replaced by enthusiasm."
Niek Bossché & Paul Steinbush
Erasmus Medical Centre, The Netherlands
"Prodacapo provides us with great information and more precise patient costing data."
"It's also very important for us to compare and analyze on different levels and in between different departments. Prodacapo gives us better management information of for example resource consumption per patient treatment."
Reidun Martine Rømo
Ekonomichef, Helse Midt-Norge
”Using Prodacapo's TDABC methodology (Time Driven ABC) means we have got a an easy-to-use costing tool, a costing model that is easy to understand and a unified method to track the patient level costs.”
Head of patient level costing, County council of Jämtland, Sweden