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#AnaplanHub16
#AnaplanHub16
Predictive Costing with BetterVuPlan for future cost and capacity levels with ABC using Anaplan
#AnaplanHub16
Mitch MaxPartner
#AnaplanHub16
App HubActivity Based Costing
Predictive Labor ModelingWorkforce Capacity Planning
for InsuranceAgile Planning
Focused on Financial and Operational Planning using Anaplan
Based in Toronto and New YorkSpecializing in Financial Services, Healthcare, Manufacturing / Distribution20+ years’ experience in ABC and Capacity ModellingGrowing team of dedicated Anaplan expertsLibrary of advanced apps on Anaplan’s App Hub
#AnaplanHub16
Agenda
The Value of ABC Predictive Costing
Examples – Using the BetterVu App
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The Value of Activity-Based Costing
Proven Methods, New Tools
Traditional ABC Use Cases
Product / Service Unit Costing
Profitability by Customer,
Product, Channel
AllocationsCapacity Analysis
What does it cost to do … for ...?
Which are my most / worst
profitable customers?
What can I do?
How do I assign common costs to
products, departments or
Lines of Business?
Do I have the right number of staff to current
and planned demand?
Customer Profitability
90% of profit from
20% of customers
Top Customer
Bottom Customer
Product Profitability
Capacity Analysis
Requires Time-Based ABC
ABC Methodologies
Why the bad rap?Perfection Bias
Big / Costly / Lengthy projects
Black Box: distrust of broad allocation methods
Lack of Integration
Lack of transparency / action
Key Drivers of SuccessImmediacy
Transparency
Connectivity
Customization
Speed of Deployment
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Integrated ABC
Extending ABC into Predictive Analytics
Predictive ABC Use Cases
Cost Forecasting Workforce Planning
Strategic PlanningPricing
Volume Projection /
Trends
Driver-Based Analysis
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1. Plan Capacity First
2. Plan other resources based on other drivers/methods
3. Forecast costs based on resource needs
The Core: Workforce Capacity Planning
Business Volumes
ServiceVolumes
Time Standards
Required Capacity
Current Staffing
Team Changes
Staffing Changes
Available Capacity
Optimize
Modify Consumption
Rates
Modify Productivity
Rates
Requires Time-Based ABC
Add Resources as gap closes
Capacity First
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Moving Forward
BetterVu’s ABC App as the core of a Predictive Costing Platform
Integrated ABC Platform
Impact of Product Changes
ActualsForecast Yr 1
Forecast Yr 2
% o
f Vol
by
Type
Cost per Loan by Type
LifecycleForecasting
Cost per Loan by type of loan $
Account Activity by Age of Loan from inception
# Ca
lls p
er m
onth
per
loan
(showing different loan types)
Summary
ABC Analytics Provide Value
Consumption Modelsaid understanding and
support capacity modelling
ABC App provides the framework
Value in Forecasting is from Integration
Q A
