LEAD Reference Content:Value-based Costing - Revision history

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Admin: Created page with "{{DISPLAYTITLE: Value-based Costing}} == Value-based Costing == Figure 1: Value-based Costing. Category: Value Management"

2017-01-19T14:50:33Z

Created page with "{{DISPLAYTITLE: Value-based Costing}} == Value-based Costing == Figure 1: Value-based Costing. Category: Value Management"

New page

{{DISPLAYTITLE: Value-based Costing}}
== Value-based Costing ==

[[File:Value-based Costing.png|thumb|800px|Figure 1: Value-based Costing.]]

[[Category: Value Management]]

@@ Line 42: / Line 42: @@
 [[Category: Value Management]]
 [[Category: Lifecycle Management]]
 [[Category: Process Management and Process Optimization]]
 [[Category: Services]]

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 value identification, value planning, value innovation, value creation, value realization and thereby existence to the possible value governance and improvements.
-Value-based Costing is therefore applied in the entire Value Lifecycle phases:
+<u>Value-based Costing is therefore applied in the entire Value Lifecycle phases:</u>
 #Value Identification, this is the phase where one explores, analysis, collects, captures, assesses, clarifies, appraises, evaluates, examines and then plans accordingly.
 #Value Strategy & Planning, this is the phase where one initiates, aligns, arranges, blueprints, categorizes, charts, defines, determines, quantifies, drafts and outlines.

@@ Line 5: / Line 5: @@
 <u>In terms of the LEAD Way of Working, it draws on both:</u>
-*'''Value Drivers''', as a major source of information, and focuses on:
+'''Value Drivers''', as a major source of information, and focuses on:
 #strategic linkage;
 #improving value management;
@@ Line 14: / Line 14: @@
 The objective is to innovate and transform an organization’s revenue, service and value model as necessary to achieve strategic objectives. Thereby providing better insight into how value should be allocated to individual business areas, competencies, services, activities, products and/or customers, and is a critical aspect to the decision making process. VBC links value aspects and expenses related to resources supplied to the company services. VBC is then a way of measuring which of the organization’s services and activities generate revenues in excess of costs, and as a result, provide keen insight into what is really providing value for customers.
-*'''Performance Drivers''', as a major source of information, and focuses on:
+'''Performance Drivers''', as a major source of information, and focuses on:
 #improving performance;
 #reducing costs;

@@ Line 3: / Line 3: @@
 Value-based Costing (VBC) is a LEADing Practice concept that is based on the innovating and cutting-edge practices that leaders and outperformers in today’s business markets execute. VBC aims to maximize the value adding business competencies, services and activities while minimizing, or entirely eliminating, non-value adding aspects. In terms of the LEAD Way of Thinking with VBC, the overall objective is to use and improve the core competitive and core differentiating competencies, and thereby value aspects of an organization, when securing and improving one’s market position.
-In terms of the LEAD Way of Working, it draws on both:
+<u>In terms of the LEAD Way of Working, it draws on both:</u>
-'''Value Drivers''', as a major source of information, and focuses on:
+*'''Value Drivers''', as a major source of information, and focuses on:
-##strategic linkage;
+#strategic linkage;
-##improving value management;
+#improving value management;
-##creating value measures;
+#creating value measures;
-##improving revenue; and
+#improving revenue; and
-##producing enhanced value aspects in services and products.
+#producing enhanced value aspects in services and products.
 The objective is to innovate and transform an organization’s revenue, service and value model as necessary to achieve strategic objectives. Thereby providing better insight into how value should be allocated to individual business areas, competencies, services, activities, products and/or customers, and is a critical aspect to the decision making process. VBC links value aspects and expenses related to resources supplied to the company services. VBC is then a way of measuring which of the organization’s services and activities generate revenues in excess of costs, and as a result, provide keen insight into what is really providing value for customers.
-'''Performance Drivers''', as a major source of information, and focuses on:
+*'''Performance Drivers''', as a major source of information, and focuses on:
-##improving performance;
+#improving performance;
-##reducing costs;
+#reducing costs;
-##creating performance measures;
+#creating performance measures;
-##improving cash flow and quality; and
+#improving cash flow and quality; and
-##producing enhanced performance products.
+#producing enhanced performance products.
 The objective is to innovate and transform an organization’s cost, performance and operating model. Thereby providing a link between activity-based costing (ABC) with value-based costing (VBC) principles, and make simple adjustments to allocated overhead costs that do not accurately model how the product or cost consumes the overhead activities. VBC links performance and expenses related to resources supplied to the company to the activities performed within the company.

@@ Line 4: / Line 4: @@
 In terms of the LEAD Way of Working, it draws on both:
-*'''Value Drivers''', as a major source of information, and focuses on:
 ##strategic linkage;
 ##improving value management;
@@ Line 13: / Line 14: @@
 The objective is to innovate and transform an organization’s revenue, service and value model as necessary to achieve strategic objectives. Thereby providing better insight into how value should be allocated to individual business areas, competencies, services, activities, products and/or customers, and is a critical aspect to the decision making process. VBC links value aspects and expenses related to resources supplied to the company services. VBC is then a way of measuring which of the organization’s services and activities generate revenues in excess of costs, and as a result, provide keen insight into what is really providing value for customers.
-*'''Performance Drivers''', as a major source of information, and focuses on:
+'''Performance Drivers''', as a major source of information, and focuses on:
 ##improving performance;
 ##reducing costs;

@@ Line 1: / Line 1: @@
 {{DISPLAYTITLE: Value-based Costing}}
 == Value-based Costing ==
-[[File:Value-based Costing.png|thumb|800px|Figure 1: Value-based Costing.]]
+In terms of the LEAD Way of Working, it draws on both:
 [[Category: Value Management]]