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
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