Activity Based Costing: Data Collection Made Easier

The process of collecting “time spent” data from individuals in order to build an ABC model can be time consuming for interviewers and is often daunting, especially for the interviewee. The messages sent out when somebody comes to your desk and spends an hour or more effectively asking “what do you do with your time?” can appear negative and the quality of the data collected may depend on the “bedside manner” adopted by the interviewer.

For these reasons ValueAdding.com has worked with our partner Azolve to develop an on-line data collection facility. A demonstration example of the model is available to look at here: ABC Online Model Demo

This enables people to conduct their own self interview in their own time and without somebody looking over their shoulder. It is particularly useful when large numbers of staff are being involved or multiple numbers of departments are taking part. It can also be used when more than one organisation is looking at the same process.

To set this up requires the completion of an activity directory that can be published on-line and against which participating staff can identify how much time they spend completing key tasks. The time for these activities can vary in frequency from one day a month to 20 minutes per day but this allows the set up to capture specific and detailed information. 

To use the system every staff member is given a log in code which takes them through to a single data capture screen where the processes and activities they participate in are listed. The rest is up to them.