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Planning and Budgeting

Planning and Budgeting – Reference Material

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New Paths to Dramatically Improve Your Planning and Control Processes

Steve Player

Written for the Journal of Accountancy, the paper covers typical problems with budgeting, principals of Beyond Budgeting processes, principals for front-line action, common keys to success, and revolutionary approach to change

New Paths to Dramatically Improve Your Planning and Control Processes

Planning, Budgeting, and Forecasting for Superior Business Execution

Steve Player – Subject Matter Expert

Final report of a Consortium Benchmarking Study conducted by the APQC in conjunction with Beyond Budgeting and published in 2006. Best practice partners were Bank of America, Emerson Electric Company, Wachovia, and Nestle Purina PetCare

APQC Best Practice Final Report Planning, Budgeting, and Forecasting for Superior Business Execution

Integrated Best Practices. Planning, Budgeting, and Performance Management

John A. Miller

17 page power point presentation that includes an Overview and Background (definitions, integrated best practice technology, and methods and sources), Application and Use in Government, Steps to Implement, Key Success Factors, and Summary

Integrating Best Practices. Planning, Budgeting and Performance Management

Budgeting for Results 2008. Navigating the Budgeting Process

John A. Miller

47 slide power point presentation that includes aligning budgeting to strategy, key realities and drivers of the budget process, budget formulation: estimating and forecasting budget requirements, budget justification: building am effective case for new initiative, and budget execution: tracking, monitoring, and modifying

Budgeting for Results 2008. Course 2 March 19

Enhancing Value & Profits Though Effective Planning & Budgeting

Alan Stratton

This 17 slide power point presentation was developed by the CAM-I Planning & Budgeting Interest Group. Material covers the budget process, characteristics of planning and budgeting, and an overview of the CAM-I ABPB Closed-Loop Model

Enhancing Value and Profits Through Effective Planning and Budgeting

 

Planning and Budgeting

Planning and Budgeting – Articles and Papers

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Enterprise Master Plan: Next-Generation Planning With Activity-Based Costing

John A Miller, Alan Dybvig and Jeff Karrenbauer

Published in June 2014 by the Journal of Corporate Accounting and Finance. This article advocates relaxing the assumption of a fixed sales forecast to solve for the optimum level of sales and marketing spend that will provide the maximum profit and return on investment.

Enterprise Master Plan. Next Generation Planning With Activity based Costing

How Much Profit is Your Current Plan Leaving on the Table?

John A Miller and Alan Dyvig

This 80 page white paper is a more detailed and comprehensive review of an Enterprise Master Plan (EMP) as described in the article above. The paper features a case study and example of an EMP by simultaneously optimizing a forecast for maximum profit and optimizing the supply chain to guarantee it can make and fulfill the new forecast sustainably. For a copy of the White Paper please contact John Miller

Optimized Planning white paper

Customer Profitability

Customer Profitability – Reference Material

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Customer Profitability Management

John A. Miller

64 page Power Point presentation presented at a conference in Tokyo in May, 2009 sponsored by the Consortium of Advanced Management International (CAM-I). Covers the principals of customer profitability, definitions, steps to calculate customer profitability, and most importantly best practices and examples from companies like Marriott Hotels, Zippo Manufacturing Company, and FedEx

Customer Profitability APQC Kick Off Presentation

 

Customer Lifetime Value

John A. Miller

32 page Power Point presentation titled Customer Lifetime Value presented to a BAIAMIFS Conference in April 2007

Customer Lifetime Value. Marketing Models and Applications

 

Calculating and Reporting Customer Profitability

John A. Miller

44 page Power Point presentation presented at the Executive CMA program in Winnipeg Canada in March 2007. Topics include benefits and applications, principals, customer segmentation, revenue assignment, assets and customer investments and cost to serve.

APQC SME Presentation Calculating and Reporting Customer Profitability

Killer Customers The Trillion $ Opportunity

John A. Miller

22 page Power Point presentation and workshop given to the Cost Management Advanced Practices Symposium on May 13, 2005. Workshop topics included Overview and Background, Customer Segmentation, Cost to Serve, Tracing Assets, and Valuation/ Economic Value Added

Killer Customers. The Trillion $ Opportunity

 

Secondary Research

186 Pages of Secondary Research conducted for the Customer Profitability Best Practice Study

186 page Secondary Research for Customer Profitability Best Practice Study

 

Customer Profitability

Customer Profitability – Articles and Papers

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Customer Profitability

John A. Miller

Published in the May/June 2008 issue of the Journal of Corporate Accounting and Finance this six page article covers best practices, application and use of customer profitability information, the relationship between customer profitability and customer valuation, benefits, and methods for calculating customer profitability

Customer Profitability Article

Customer Profitability Management

Nabil Elias, Dan Hill

This document is a 56 page Management Accounting Guideline published by Institute of Management Accountants (IMA)

Customer Profitability Management. IMA

Managing Customers as Investments

Sunil Gupta, Donald R. Lehman

How customers are assets. How to calculate the value of your customers simply. How customers can drive your marketing strategies. How your organization must change

Managing Customers as Investments

Calculating and Reporting Customer Profitability

Consortium Benchmarking Study conducted by APQC and CAM-I.
John A. Miller (SME)

82 page Final Report. Five Chapters, Background and Overview of Customer Profitability Initiatives at Participant Organizations, Customer Segmentation, Calculating Customer Profitability, Reporting Customer Profitability and Putting Customer Profitability into Action

Best Practice Study Calculating and Reporting Customer Profitability

Customer Profitability, Prodacapo Cases

Frank Van Vliet

This 44 page Power Point includes Erasmus MC, Telenor, Skandia Live (Old Mutual), Larson Juhl (Berkshire Hathaway), Elektroskandia (Stonepar), Terquimsa/Vopak, Philips Lighting Distribution, SCA, and Pipelift

Prodacapo Case Studies

Customer Profitability

Customer Profitability – Case Studies

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FedEx Services

John A. Miller SME

Calculating and Reporting Customer Profitability at FedEx Services, a best practice company in the APQC Best Practice Study. 17 page site visit summary held 9/22/2005 in Memphis Tennessee

Final FedEx Site Visit Summary

Marriott Hotels

John A. Miller SME

Calculating and Reporting Customer Profitability at Marriott International, a best practice company in the APQC Best Practice Study. 20 page site visit summary held 10/19/2005 in Bethesda MD

Final Marriott Site Visit Summary

North Shore Credit Union

John A. Miller SME

Calculating and Reporting Customer Profitability at North Shore Credit Union, a best practice company in the APQC Best Practice Study. 11 page site visit summary held 11/20/2005 in Vancouver British Columbia

North Shore Credit Union Site Visit Summary

Wachovia Bank

John A. Miller SME

Calculating and Reporting Customer Profitability at Wachovia Bank, a best practice company in the APQC Best Practice Study. 30 page site visit summary held 9/26/2005 in Charlotte North Carolina

Wachovia Site Visit Summary

Zippo Manufacturing

John A. Miller SME

Calculating and Reporting Customer Profitability at Zippo Manufacturing, a best practice company in the APQC Best Practice Study. 18 page site visit summary held 9/27/2005 in Bradford Penn

Zippo Site Visit Summary

Cost Management

Cost Management – Reference Material

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Activity-Based Management I. Benchmarking Consortium Study. 1996

John A. Miller (Subject Matter Expert)

Published in 1996, this 72 page Best Practice Study was conducted by the American Productivity and Quality Center (APQC). Over 50 companies sponsored the study. 16 Best Practice Partners were identified including Deere & Company, Boeing, General Motors (Delco Electronics), PCS Health Systems Inc, IBM (Endicott Panel), and First Tennessee Bank.

Activity-Based Management I. Benchmarking Consortium Study. 1996

Activity-Based Management II. Best Practices for Dramatic Improvement

John A. Miller (Subject Matter Expert)

Published in 1997, this 116 page Best Practice Study, again published by the APQC, was titled Best Practices for Dramatic Improvement and was sponsored by 25 companies including Case Corporation, Coca-Cola Goods, MetLife, Navistar, Allied Signal, Controller Magazine, and Nationwide Insurance. Best Practice Partners included Ralston Purina, Chrysler, Charles Schwab, Caterpillar, Cummins Engines, and First data.

Activity-Based Management II. Best Practices for Dramatic Improvement

Activity-based Management III. Best Practices for Strategic Implementation

John A. Miller (Subject Matter Expert)

Published in 1999, this 84 page Best Practice Study, again published by the APQC, was titled Best Practices for Strategic Improvement and included MetLife, United States Coast Guard, Applied Materials, Motorola, Owens & Minor, and Nestle.

Activity-based Management III. Best Practices for Strategic Implementation

Activity-Based Costing

Robert S. Kaplan – Harvard University

Many people attribute Activity Based Costing to Dr. Kaplan who was written many papers and articles on the subject. The 15 page paper makes the case for ABC in service companies and for Operational Control Systems.

Activity Based Costing

Cost Management Opportunities

Lawrence S. Maisel

This 11 page document includes sections on Strategic Profit Analysis, Undertaking a Customer Based strategy, Simulating Process Improvements, Justifying Technology Investments, and Costing Operations Changes

Cost Management Opportunities

Cost Management

Cost Management – Articles and Papers

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Acceptable Profit Levels Demand Cuts

by John A Miller

In 1982, the number of rigs drilling for oil and gas in the United States hit an all time high of 4,000+ rigs. On April 24, 1992 only 623 rigs were drilling for oil and gas, the lowest level of rig activity since Hughes tool Company began recording weekly rig counts in 1940. Cost management in this industry was all about cost cutting and downsizing. Survival was at stake.

Acceptable Profit Levels Demand Cuts

Survivalist Cost Cutting. What Government Can Learn from the Private Sector

John A Miller

The cumulative Federal deficit of spending more money than we bring in was $17 trillion at the end of o fiscal year 2013. Sponsored by Grant Thornton and CAM-I, this paper outlines five lessons learned from the private sector: Develop a cost reduction plan, Reduce acquisition cost through strategic sourcing, Streamline operations, Consolidate facilities and operations(footprint reduction), and Reduce headcount

Survivalist Cost Cutting. What Government Can Learn from the Private Sector

Addressing Commodity Price Volatility on Product Development Through A Mature Target Costing Process

Elaine R. Jones and Tami L. Capperauld

This article provides guidance on approaches for responding to price volatility within the target costing process. Target costing is a methodology where new products are designed and made based on a predetermined target cost. Boeing, Whirlpool, Navistar, and Dresser Industries all use the target costing process in developing new products. Because new products often take years to develop, addressing the volatility of commodity prices is critical

Addressing Commodity Price Volatility on Product Development Through A Mature Target Costing Process

Designing and implementing a New Cost Management System

John A Miller

Published in the Journal of Cost Management in 1992, this article introduced a new paradigm for cost management, focused more on managing processes and activities and less on general ledger costs. In this new paradigm the emphasis is on the management part of cost management, where accountants design and implement systems and procedures to report the cost and performance of processes and activities

Designing and Implementing a New Cost Management System. Winter 1992

Activity-Based Management: A Fresh Look at a Mature Tool

John A. Miller

Published by Capital Magazine in June 2006, this article was written for operation managers and senior level executives and makes the case for the new innovations in technology that have enhanced the value of ABM and its use in modern companies competing in the global arena

Activity-Based Management. A Fresh Look at a Mature Tool

Cost Management

Cost Management – Case Studies

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HomeHealth: Delivering Activity-Based Costing

John A. Miller

This case study is one of 14 case studies, each written by a different author, in a book titled Case Studies in Performance Management and published in 2006. This case study is instructive in many ways and demonstrates the key principles of an effective ABC implementation. Excellent example and case study for implementing ABC in a hospital or health care environment.

HomeHealth. Delivering Activity-Based Costing

McCook Community hospital – How to make Time Driven ABC work

Ryan Morthole and Frank van Vliet

This recent 46 page Power Point Presentation provides a great source of material for those in the health care industry and interested in the a time based ABC methodology for hospitals. Power Point slides include First Steps to Development, Development Strategy, Report Examples, Challenges Faced, Cost Drivers, Defining Cost Objects and Patient Grouping, Reasons for ABC, and Analysis and Outcomes

BB McCook Workshop

CITGO Petroleum Meeting the Challenge with ABM

Marlene B. Rodriguez, Andrew D. Muras, and Dennis D. Calhoun

This 18 page article was published by the Journal of Corporate Accounting and Finance in their March/April 2002 edition. The article features the CITGO Petroleum and has 15 exhibits. The article includes and identifies Process Improvements, Capacity Analysis, Shared Services, Examples of Cost Assignment, Outsourcing Decisions, Initial Pilot Project, Implementation Approach, Identification of Non Value Added costs, and a Fast Track ABC Approach.

Citco Petroleum Meeting the Challenge With ABM

Understanding Costs in a Scientific Paradigm: ABM in Manufacturing (Specialty Chemical)

David Woodworth

With over 1,800 products in seven product groups, this US-based specialty chemical manufacturer needed to better understand cost and process flow information. The company’s current costs seemed inaccurate as the company’s competitors were able to be more competitively priced in certain market niches. To solve the problem the company implemented an ABC/ABM costing system. This initiative, undertaken in the early 1990’s, was crude by today’s standards of costing but rich in wisdom, results, lesions learned, and the value of an evolving ABC Model

Understanding Costs in a Scientific Paradigm. ABM IN Manufactuirng. Specialty Chemical

Zippo Lights Up With ABCM

Robert Vecchio, John A. Miller and Andrew Muras

In 2003, Zippo was facing several major business issues. Standard costs were not reflective of actual costs, minimal visibility on product profitability, minimal visibility on manufacturing process costs, and no visibility on customer profitability. To address these issues, Zippo elected to undertake a project to implement Activity Based Costing/Management (ABCM). Zippo subsequently was recognized as a Best practice in Customer Profitability by the American Productivity and Quality Center (APQC)

Zippo Lights Up with ABCM