HALAŠKA, Michal and Roman ŠPERKA. Utilization of Time-driven Activity-based Costing and Process Simulation in Cost Management of Organization. E+M Ekonomie a Management. Liberec: Technická univerzita v Liberci, 2024, vol. 27, No 2, p. 50–68. ISSN 1212-3609. Available from: https://dx.doi.org/10.15240/tul/001/2024-5-007.
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Basic information
Original name Utilization of Time-driven Activity-based Costing and Process Simulation in Cost Management of Organization
Authors HALAŠKA, Michal (203 Czech Republic, belonging to the institution) and Roman ŠPERKA (703 Slovakia, guarantor, belonging to the institution).
Edition E+M Ekonomie a Management, Liberec, Technická univerzita v Liberci, 2024, 1212-3609.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50200 5.2 Economics and Business
Country of publisher Czech Republic
Confidentiality degree is not subject to a state or trade secret
WWW URL
Organization unit School of Business Administration in Karvina
Doi http://dx.doi.org/10.15240/tul/001/2024-5-007
Keywords in English Business processes; process mining; simulation; TDABC; RPA; automation
Tags International impact, Reviewed
Changed by Changed by: doc. RNDr. Ing. Roman Šperka, Ph.D., učo 18157. Changed: 27/6/2024 15:21.
Abstract
The deployment of information and communication technologies in organizations is on the rise. Many organizations consider the application of technologies to be a crucial key to improve their processes. However, traditional costing systems are not suitable for cost estimation of business processes due to the use of volume-based cost drivers, which are often not adequate for the structure of today’s organizations. In this research, we present an overview of how the TDABC (time-driven activity-based costing) model can be combined with process mining and business process simulation for cost estimation of such processes. The objective of this paper is to use the cost dimension as a major attribute for the potential implementation of robotic process automation (RPA) in companies. However, information and communication technologies could be considered in general. We demonstrate our approach in a case study that takes advantage of a real-life event log containing transactional data representing the loan application process in an insurance company. The event log is analyzed and processed using process mining techniques. Based on the preprocessing, a simulation model representing the original loan application process is designed. The designed simulation model is then used for simulation of partial and full implementation of RPA through separate scenarios. Then, we add the cost dimension to the simulation by enriching the event log with cost data based on a formalized cost model. We show that even though partial implementation of RPA might not deliver significant increase in efficiency in the process, it might still represent significant cost savings.
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