April 26, 2012
• Introduction
• ABC in services - does it make sense?
• Process and its management as a basis for ABC
• TDABC - a compromise or a necessity in services
• Over 450 years of experience - Zygmut August founded the Royal Post in 1558.
• over 90 000 employees
• Over 8 200 posts
• Active on the regulated market
• National operator obliged to provide "universal services"
ABC in Poczta Polska S.A. - beginnings
• 2004 - beginning of works
• The need to fulfill obligations resulting from the III Postal Directive
• Benchmark - 12 from 15 posts from the "old UE" have implemented ABC
• 2006 - new operational structures in PP S.A.fundamental change of the conception
• 2009 - ABC model ready for implementation
ABC in PP S.A. - beginnings
• 2009 - external audit of data sources for the ABC Model - a partial change of data sources was recommended
• 2010-2011 - change of data sources, reconstructing the Model
• 01.01.2012 - ABC as the only activity-based costing in Poczta Polska
• ABC can be applied only in production - myths about activity-based costing
• Indirect costs in service companies
• Fixed costs in service companies
• The paradox of marginal costs in services
costs resources activities services
• In order to provide services certain actions are taken
• Taking actions triggers use of resources, which incur costs
• All costs are allocated to individual services provided by PP S.A. (incoming costs equal outcoming costs)
• Basic activities - directly connected to the process of providing services:
• Supplementary activities - fulfill a supplementary function with regard to other activities or resources; costs allocated to the supported activities and resources
• General activities - lack of possibility to establish a direct connection to services (and other activities or resources); costs accounted by charges on services, general activities appear in two variations:
• allocated to all services of PP S.A. (e.g. "Organization Management")
• allocated to all services of organizational units in which the given activity is performed (general activities - specific - e.g. "Markting and Trade Activities in Logistics"),
Grouping activities into technological phases
Sending phase - receiving in various formats
Shipment and sorting phase - sorting, exchange, back-up activities
Return phase - delivery, handing over at the counter
Transportation phase - transferring of packages in Poland and abroad
Elementary level- technological operations
• The technological process of every service is divided into operations assigned to them :
– Internal instructions and regulations
– Working with technologists and operational employees
– Direct observations in close to 100 posts of all kinds
• A standard set for every piece of service
• The structure of process description is precisely fitted to the structure of the Model
• Periodical updating of operational standards
• Technological process of each service after dividing into operations was examined with regard to frequency of their occurrence
– Internal instructions and regulations
– Works with technologists and operational employees
– Direct observations in close to 100 posts of various kinds
• Use of data from systems and statistical research
• Cyclical updating (using average results from 3 turns of research)
• It is calculated for the whole volume of the given
Advantages of TDABC over ABC • Easier Model maintenance and its updating
• Simplification of the Model • Better correlation with Process Management
• There are over 150 carriers used by PP S.A. for costs accounting in ABC
– Wages costs, number of employees, area, energy consumption, number of kilometers, etc.
– Considerable reduction of the surveys importance
• For over 70% of costs time is the carrier
• Measuring the duration of operations and statistical research regarding the flow of streams (basing on strictly followed rigorous methodology)
• Model extension enabling valuation (apart from currently available costs of: operations, activities, phases, products) as well as valuation basing on segments and individual clients
• Building the System of Managerial Information and the ABC integration as one of the reporting perspectives (product perspectives; the other perspectives are client perspective and PP S.A. post perspective)
• Updating the Model on account of the changes planned in Post Law
• Dr Tomasz Cicirko – Office Manager
Office of Managerial Accounting and Financial Liquidity
tomasz.cicirko@warszawa.poczta-polska.pl
• Karol Sikora – Head of Department for Managerial Information
Office of Managerial Accounting and Financial Liquidity karol.sikora@centrala.poczta-polska.pl