Over Four

Decades of

Industry-led

Collaborative

Research

Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved.

Consortium for Advanced

Management - International

Over Four

Decades of

Industry-led

Collaborative

Research

Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved.

CAM-I - Consortium for Advanced

Management - International

The following slides show some of the significant work CAM-I has done in the areas of

methods, applications and guidelines by working with their members, strategic

partners, academia and subject matter experts.

Over Four

Decades of

Industry-led

Collaborative

Research

Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved.

Resources

Cost Objects

(Products, Services or Customers)

Performance Measures

Activities

Activity-Based Costing

Cost Drivers (Causes of Cost)

The CAM-I Cross©

Copyright © CAM-I – All Rights Reserved

Over Four

Decades of

Industry-led

Collaborative

Research

Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved.

Performance Management

Maturity Framework (PMMF)

1: As-is Maturity

2: Desired Maturity

3: Identify Gaps

4: Change Assessment

5: Choose Technique

6: Measure Improvement

Ad hoc Tracked Analytics Benchmark

Six Step

Implementation

Approach

PMMF is a holistic methodology that identifies key enablers influencing an organization`s business

performance. The framework pinpoints gaps in enabler maturity and, within the constraints of the

organization’s change capability, recommends specific techniques to improve performance.

Over Four

Decades of

Industry-led

Collaborative

Research

Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved.

Op

era

tio

nal p

lan

nin

g a

nd

co

ntr

ol

Customers & business sustaining

Products / Services

Processes

Activities

Resources

Suppliers

Dec

isio

n f

low

an

d s

ub

ord

ina

tio

n

Co

st

as

sig

nm

en

t fl

ow

In each decision domain, data is needed for operational planning and Cost Measurement

Fin

an

cia

l p

lan

nin

g a

nd

co

ntr

ol

Dem

an

d m

an

ag

em

en

t

Su

pp

ly m

an

ag

em

en

t

Operational Data and Cost Measurement Data Flow

Copyright © 2006-7 CAM-I – All Rights Reserved

Over Four

Decades of

Industry-led

Collaborative

Research

Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved.

Pe

rce

nta

ge

Phase of Product Development

10

20

30

40

50

60

70

80

90

100

0

Brief Window of Opportunity

85% of Cost Committed

70

85 95

Percent of Life-Cycle

Cost Committed

5% Cost Expended

5

30 Percent of Program

Cost Expended

Concept

Development

Preliminary

Design

Detail

Design Production

Target Costing Process Advantage

Shifting the Focus

Over Four

Decades of

Industry-led

Collaborative

Research

Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved.

The CAM-I ABB Closed Loop

Cost Assignment

Cost Assignment

Financial Results

$

Target

Results

Financial

Balance

Adjust

Consumption

Adjust

Demand

$

Operational Balance Resource Capacity

Adjust

Capacity

Shortage or Excess

Activity Requirement

Activities

Consumption Rates

Products &

Services

Demand Requirements

#

Resources

Resource Requirement

Consumption Rates

# Adjust

Resource Cost

Strategic Plan

Adjust

Price

CAM-I - The Closed Loop

Planning and Budgeting

Copyright © 2009 CAM-I – All Rights Reserved

Over Four

Decades of

Industry-led

Collaborative

Research

Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved.

CAM-I Capacity Model

Categories Summary

Attributes Cost Drivers Resources or

Activities Categories Traditional

Source: Adapted from the CAM-I Capacity Model

Capacity

Available

Productive

productive

Non-

Idle

Off Limits

Not Usable

Usable

Stand-by

Waste

Clean-up

Documentation

Good Products or Services

Working on the process

Management Policies

Excess Not Usable

Union Agreements

Idle But Usable

Materials

Readiness

Internal Operations

Internal Operations

Materials

Budgeted

Practical

Theoretical

Wait for fuel

Look in stash/chase parts

Dispose of excess materials

Document work

Perform the work

Wait at warehouse

Over Four

Decades of

Industry-led

Collaborative

Research

Global Leadership in Cost, Process and Performance Management © 2013 CAM-I. All Rights Reserved.

Resource

Decision Domains

Process

Product

Customer/Market

Strategic Management Processes

Activity-Based Cost Management

Capacity Management

Target Costing

Closed Loop Planning and Budgeting

Extended Enterprise

Process Management

Integrated Performance Management

Risk Management

Asset Management

CAM-I Strategic Management

Process Model

Copyright © CAM-I – All Rights Reserved