Opening the 'black box' of efficiency measurement: input allocation in multi-output settings.

We develop a new Data Envelopment Analysis (DEA)-based methodology for measuring the efficiency of Decision Making Units (DMUs) characterized by multiple inputs and multiple outputs. The distinguishing feature of our method is that it explicitly includes information about output-specific inputs and joint inputs in the efficiency evaluation. This contributes to opening the „black box‟ of efficiency measurement in two different ways. First, including information on the input allocation substantially increases the discriminatory power of the efficiency measurement. Second, it allows to decompose the efficiency value of a DMU into output-specific efficiency values which facilitates the identification of the outputs the manager should focus on to remedy the observed inefficiency. We demonstrate the usefulness and managerial implications of our methodology by means of a unique dataset collected from the Activity Based Costing (ABC) system of a large service company with 290 DMUs.

Opening the 'black box' of efficiency measurement: input allocation in multi-output settings

We develop a new Data Envelopment Analysis (DEA)-based methodology for measuring the efficiency of Decision Making Units (DMUs) characterized by multiple inputs and multiple outputs. The distinguishing feature of our method is that it explicitly includes information about output-specific inputs and joint inputs in the efficiency evaluation. This contributes to opening the „black box? of efficiency measurement in two different ways. First, including information on the input allocation substantially increases the discriminatory power of the efficiency measurement. Second, it allows to decompose the efficiency value of a DMU into output-specific efficiency values which facilitates the identification of the outputs the manager should focus on to remedy the observed inefficiency. We demonstrate the usefulness and managerial implications of our methodology by means of a unique dataset collected from the Activity Based Costing (ABC) system of a large service company with 290 DMUs.

Target value design: using collaboration and a lean approach to reduce construction cost

Target Costing is an effective management technique that has been used in manufacturing for decades to achieve cost predictability during new products development. Adoption of this technique promises benefits for the construction industry as it struggles to raise the number of successful outcomes and certainty of project delivery in terms of cost, quality and time. Target Value Design is a management approach that takes the best features of Target Costing and adapts them to the peculiarities of construction. In this paper the concept of Target Value Design is introduced based on the results of action research carried out on 12 construction projects in the USA. It has been shown that systemic application of Target Value Design leads to significant improvement of project performance – the final cost of projects was on average 15% less than market cost. The construction industry already has approaches that have similarities with elements of the Target Value Design process or uses the same terminology, e.g. Partnering and Target Cost Contracts, Cost planning, etc. Following an exploration of the similarities and differences Target Value Design is positioned as a form of Target Costing for construction that offers a more reliable route to successful projects outcomes

Management Accountant's Role and Functions in the Enterprise Resource Planning Environment - Author's Own Research into Enterprises in Poland

This article seeks to answer whether the implementation of an ERP system has an effect on the management accountant's tasks and functions, especially in the field of performance measurement and internal reporting. The ERP impacts on the controller's role in the organization will be evaluated using field studies on six enterprises owned by multinational corporations. The question that should be asked here is whether controller's functions and tasks will also be unaffected.Celem badania jest próba odpowiedzi na pytanie czy zastosowanie zintegrowanego systemu informatycznego w przedsiębiorstwie zmienia zadania i funkcje specjalisty do spraw rachunkowości zarządczej. Na podstawie studium przypadku sześciu przedsiębiorstw będących częścią koncernów międzynarodowych zostaje dokonana ocena wpływu zastosowania ERP na rolę kontrolera w organizacji. Autor odpowiada również na pytanie czy w funkcjach i zadaniach kontrolera nie zaobserwowane zostaną zmiany w związku z implementacją ERP

Modelling benefits-oriented costs for technology enhanced learning

The introduction of technology enhanced learning (TEL) methods changes the deployment of the most important resource in the education system: teachers' and learners' time. New technology promises greater personalization and greater productivity, but without careful modeling of the effects on the use of staff time, TEL methods can easily increase cost without commensurate benefit. The paper examines different approaches to comparing the teaching time costs of TEL with traditional methods, concluding that within-institution cost-benefit modeling yields the most accurate way of understanding how teachers can use the technology to achieve the level of productivity that makes personalisation affordable. The analysis is used to generate a set of requirements for a prospective, rather than retrospective cost-benefit model. It begins with planning decisions focused on realizing the benefits of TEL, and uses these to derive the likely critical costs, hence the reversal implied by a 'benefits-oriented cost model'. One of its principal advantages is that it enables innovators to plan and understand the relationship between the expected learning benefits and the likely teaching costs

The activity-based costing method developments: state-of-the art and case study

This paper analyses the management accounting applications which try to improve the Activity-based Costing method. In the first part, we describe them using the Strategic Management Accounting stream. Then, we present the main features of these applications. In the second part, we examine in details two of these features: The widening of the analysis perimeter and the relevant level of details to analyse the costs. Then, we analyse several proposals: Customer Profitability Analysis (CPA), Interorganizational Cost Management (IOCM), Resource Consumption Accounting (RCA) and Time-driven ABC (TDABC). Finally, we describe an experience observed in the IT supply European division of an international group. This group experiments what we call at the end a supply chain ABC tool to manage its interorganizational relations.Activity-based Costing, Strategic Management Accounting, Time-driven ABC, Case study.

A framework for integrating syntax, semantics and pragmatics for computer-aided professional practice: With application of costing in construction industry

Producing a bill of quantity is a knowledge-based, dynamic and collaborative process, and evolves with variances and current evidence. However, within the context of information system practice in BIM, knowledge of cost estimation has not been represented, nor has it been integrated into the processes based on BIM. This paper intends to establish an innovative means of taking data from the BIM linked to a project, and using it to create the necessary items for a bill of quantity that will enable cost estimation to be undertaken for the project. Our framework is founded upon the belief that three components are necessary to gain a full awareness of the domain which is being computerised; the information type which is to be assessed for compatibility (syntax), the definition for the pricing domain (semantics), and the precise implementation environment for the standards being taken into account (pragmatics). In order to achieve this, a prototype is created that allows a cost item for the bill of quantity to be spontaneously generated, by means of the semantic web ontology and a forward chain algorithm. Within this paper, ‘cost items’ signify the elements included in a bill of quantity, including details of their description, quantity and price. As a means of authenticating the process being developed, the authors of this work effectively implemented it in the production of cost items. In addition, the items created were contrasted with those produced by specialists. For this reason, this innovative framework introduces the possibility of a new means of applying semantic web ontology and forward chain algorithm to construction professional practice resulting in automatic cost estimation. These key outcomes demonstrate that, decoupling the professional practice into three key components of syntax, semantics and pragmatics can provide tangible benefits to domain use