Combining Process Mining With Activity-based Costing
In ABC, indirect costs are tied back to products and services. For example, if you have a maintenance expense of 500 Euros after 1000 hours for a machine in a production process, you can allocate 50 Cents (500 / 1000) extra costs per machine hour.
If you combine ABC with process mining, you can allocate costs to activities in your processes and evaluate “buckets of cases” according to their costs for the organization. For example, in service processes, indirect costs are often the salaries of the employees working in the process. Considering these costs for your process mining analysis can help improve your process in the right direction. Willem and Anne showed how this works based on a concrete example.
You can now watch the recording here if you missed the live broadcast or want to re-watch the café. Thanks again to Willem and all of you for joining us!
Here are the links that we mentioned during the session:
Activity Cost Driver in ABC: https://www.investopedia.com/terms/a/activity-cost-driver.asp
The 2017 BPI Challenge Loan Application Data Set was used as an example in the demo
Willem’s Cheat Sheet with the steps that he follows in his approach when combining ABC with process mining. Let him know if you have questions or feedback!
Contact us anytime at email@example.com if you have questions or suggestions for the café.
Have you seen that the Process Mining Café is also available as a podcast? So, if you prefer to listen to our episodes in your favorite podcast player, you can get them all here.