How to Quantify the Cost of a Process

Whether planning a new business process or managing the performance of an existing one, it is important to distinguish between the direct costs and overhead cost components.  While historical data can be queried to understand the actual costs incurred for existing business processes, it is paramount to performance management to understand what a process should cost. 

Process modeling is an excellent tool to describe the labor-based and material costs associated with the activities that make up a business process.  ProcessView, Bluespring’s Visio add-in for process modeling and analysis, is a static modeling solution designed for use by business owners and decision makers so they may obtain the key performance indicators associated with a process, including resource and material costs.  Once business owners have mapped the process flow and answered basic questions about the activities that make up the process (how long does it take, how much work is involved, who is responsible), preconfigured reports provide the estimated values needed for effective cost estimation and performance management.  Through comparison of the estimated values, garnered from the process model, to the actual values obtained through process observations and data collection, it becomes obvious when a process is out of a controlled state and requires intervention.

To see how ProcessView can help you with cost estimation and performance measurement, contact us for a demonstration.  To obtain a ProcessView trial, go to bluespring.com/free-trial

About Bluespring

Bluespring is a software development arm of Ascendum Solutions with a singular focus on helping organizations make work flow in Microsoft SharePoint.  We provide software and services that boost an organizations use of SharePoint to get critical information to the right people at the right time ... Read More

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