Please enable JavaScript to view this site.

mpmX Help Documentation

Navigation: English > Business Analyst Guide > How Tos

How do I build my own cost simulation or cost calculator?

Scroll Previous Topic Top Next Topic More

A wide variety of estimation techniques could be used to calculate potential savings. Not all of them can be captured in a standardized template. In just a few clicks, however, you can create your own business case calculation based on real process data that reacts to filtering in the app.

 

Examples of business case scenarios:

Company A is legally obliged to respond to a request within 60 days. If Company A fails to respond by this time, the customer may claim money from Company A at the current interest rate.

 

Company B is dependent on lean, error-free processes. If error-free processing is not ensured, small delays and reworking have a significant impact on business success due to the high throughput.

 

How can an actual process cost calculation for rework at Company B be implemented in mpmX?

 

 

Rework1

 

Inputs required for the calculation:

 

Parameter

Description

Typ

Feld / Variablenname

Personnel costs in € / internal invoice rate

Estimated value from end user

Input

vYearlySalary

Downtime due to rework / avoidable errors

Estimated value from end user

Input

vAVGTimePerRework

# Rework Events

Frequency of rework in the actual processes

Pre-calculated

ReworkEvent = 1

 

 

CustomObjects1

Creating visualizations
In the edit view, we select the "Variable Input" visualization under Custom Objects > Qlik Dashboard Bundle. It is used to query parameters from the end user.

 

Two "Variable Input" fields are required, 1x for the personnel costs and 1x for the downtime to be estimated.

Variables1

 

Variablen_Uebersicht

Create variables

The following icon is located at the bottom left below the visualizations:   Clicking on it takes us to the variable view.  

 

 

 

 

 

Here we create the two new variables:

 

„Create New“

 

 

 

 

 

 

 

 

VariablenErstellung_KostensatzMitarbeiter

Create variable for personnel costs

 

Variable name: vYearlySalary

Description: Estimated value for the internal cost rate per year per employee

Definition (default value): 100000

Tag: reworkcalculator

 

The tag is used to find all variables of the calculator again in the event of adjustments.

 

VariablenErstellung_AusfallZeitDurchRework

Create variable for downtime due to rework / avoidable errors

 

Variable name: vYearlySalary

Description: Estimated value for the average time in minutes lost due to rework.

Definition (default value): 5

Tag: reworkcalculator

 

VariablenGefiltert_ReworkCalculator

Once both variables have been created, they can be viewed in the overview.

 

If you click on the filter in the "Tags" column, you can search for the assigned tag "reworkcalculator".

 

Now that the necessary variables have been created, we can close the variables menu by pressing "Done" at the bottom right of the window.

 

PersonalCost1

 

Variables2

 

Variables3

Input Personnel costs:

In the next step, we now want to configure the "Input" fields.

 

We select the 1st input field for the personnel costs and enter a meaningful description as:

 

Variables4

Enter a description:

"Please enter the annual personnel costs per employee in €"

 

If required, a second signature (subtitle) and a footer note can be created.

 

 

Store the variable "vYearlySalary"

We then open the "Variable" tab

 

In the "Name" drop-down menu, we can now select the appropriate variable:

 

"vYearlySalary"

 

 

We repeat the same with the other input field.

 

Var_Rework1

Enter a description:

"Please enter the effort per rework in minutes"

 

Store the variable "vAVGTimePerRework".

 

Var_Rework2

If both variables have been entered correctly in the input fields, we can now see the predefined default values.

 

If you leave the editing mode, the values can already be adjusted by the end user.

 

VAR_KPI

Calculate cost per rework:

 

In the next step, we now want to implement the calculation of the business case.

 

To do this, we select a KPI object and open the f(x) field by clicking on "Add measure".

 

The formula for the costs per rework is now calculated as follows

 

Cost per person in € per minute*Time per rework in minutes*Number of cases with rework

 

As the person costs are given in € per year and not per minute, we have to make a corresponding reduction:

 

CostPerMinute

Personnel costs in € per minute:

Wir gehen dabei von einem Jahr mit 220 Nettoarbeitstagen, sowie 8h Arbeitszeit pro Tag aus.

We assume a year with 220 net working days and 8 hours of working time per day.

Line 1:

($(vYearlySalary)/220/8/60)

 

Time per rework in minutes:

Is already specified in minutes

 

Line 2:

$(vAVGTimePerRework)

 

Number of cases with rework

 

Line 3:

sum({<ReworkEvent= {1}>} CaseCounter)

 

Counts how many cases in Process Mining contain rework.

 

CostPerMinute

If we have entered the formula correctly, the formula check can be seen at the bottom of the screen.

 

OK.

 

We can also see that the default values from the variables 100,000 = vYearlySalary

5 = vAVGTimePerRework

are already applied correctly.

 

We can exit the formula editor.

 

measure1

So that the key figure can now be read correctly, we give it a suitable name and format.

 

Label: "Actual process costs rework"

Number formatting: "Money"

 

 

Tip: At this point, we would also recommend storing the created key figure as a master item. This way, it can be used again at any time in other visualizations or tables, for example.

 

Is_Cost

If we now leave the edit mode, we can click in the input field and adjust the figure for our estimate.

 

For example, we know that rework takes a particularly long time for a product group.

 

We can now filter on this product group and estimate our business case for the elimination of rework for the product group.

 

 

 

Ist Prozess Kosten Rework

 

Is_Cost2

 

If we have stored the key figure Is Process Costs Rework as a "MasterItem", we can easily build further analyses based on the input parameters in order to deepen the business case.

 

For example, in a table to find out in which region the most money is wasted through rework.

 

 

 

 

Summary:

Any number of variables can be created and adapted for the creation of cost calculations / simulations. One expansion stage for the example scenario would be to take the data directly from the systems instead of estimating the personnel costs. This would allow, for example, deviations in personnel costs between Sweden, Hungary and Spain to be controlled even more precisely.

 

However, please remember to protect employees and their rights, especially when calculating personnel costs.

 

 

© by MEHRWERK GmbH