Process pricing and cost

Process and capacity

DECIMAL’s management accounting practice offers a graphical process mapping module of business processes, which allows companies to fully understand their business flowchart and promote better communication between departments.

DECIMAL’s Process and Capacity module dynamically shows the company’s operational processes to the users using a graphical interface GUI. The module identifies the existing relations between the different processes inside the business model and produces a diagram of the links between the operational activities. Fully compatible with the process concept, the operational capacity of each activity is also represented using a user-friendly color code. Green, yellow and red colors are used to show the different capacity levels of each activity as well as potential bottlenecks.

The Process and Capacity represents an additional feature in terms of consumer and product profitability analysis in relation to operational constraints. The constraints theory suggests that any company is limited in its capacity to generate income because of a known or unknown organisational constraint. The recognition this constraint allows the company to use it to its full potential by promoting products and services that generate the most profit while reducing to a minimum the consumption of limited resources and focusing all improvement efforts toward the reduction of this constraint and creating an organizational synergy for using such constraint. Finally, the analysis of the constraints gives direction to investment projects by putting into perspective operational gains through the considered investment.

Business applications

• Realistic operational plan
• Capacity analysis
• Investment project analysis
• Production volume profitability
• Target cost
• Cycle time reduction program
• Operational scenario
• Focus group