Methodology:ActivityBasedModelingOverviewActivityBasedModelingisthemethodologyforbuildingactivity-basedinformationandintegratingitintoacompany’smanagementreportingsystem.Thefollowingobjectivesarepartofthismethodology:-Identifythetypeofactivity-basedsystemneeded(thebusinessissuestobeaddressed.)-Identifythesoftwarebestsuitedtorunthesystem.-Gatherdataanddevelopcostmodel(s).-Integratethesystemwiththedatasourcesintotheclient’smanagementreportingsystem.Questions1.WhatistheGeneralLedgerstructure?2.OnwhatsystemdoestheGLresideandhowcanthedatabetransferredtothePC?3.Wheredoesthedriverdataexist?Inwhatform?4.Whatwillyoudowithinformationoneveryproduct(customer),thatyoucannotdowithinformationoneveryproductline?(Whydoyouthinkyouneedsomuchdetail?)5.Haveyouidentifiedbusinessprocessesinyourcompany?Doyouhaveprocessowners?Hints-ThereisnosingleformulaforActivityBasedModeling-Eachprojectisuniqueandshouldbestructuredaroundtheclient’sbusinessobjectives-Decentralizedoperationstakemoreeffortthancentralized-Theclient’sbusinessobjectivemaybeservedbyasimpleratherthancomplexsystemMethodology:ActivityBasedModeling1-Prioritizeopportunities,recognizingthattheywillchangeovertime.-Utilizeexperienceconsultants(eitherasateammemberorinaQArole)IssuesThefollowing“Pitfalls”arespecifictoActivityBasedModelingandtakenfromArthurAndersen'sLessonsfromtheABMBattlefield:3.FailuretoUnderstandtheThreeViewsofCosts4.FinancialPersonHeadingtheProject7.LackofTraining8.ConsultantDidEverything9.LackofCostManagementExpertise11.FailuretoDoaPilotFirst12.TooMuchDetail13.TooLittleDetail14.ProblemsinCollectingActivityData15.InaccurateAssignmentCosts16.UnavailabilityofDetailedData17.AssignmentofCoststotheWrongYear18.SoftwareProblems26.LackofUnderstandableReports27.ProblemswithReportingFrequency28.NotaProfitCenter30.ABMisTooCostlytoMaintain*The“30Pitfalls”alongwithexperiencedadviceisdescribedcompletelyinthefirstthreechaptersandoutlinedinAppendixIofArthurAndersen’sLessonsfromtheABMBattlefield(contactShannonHagertyinSt.Charlesforacopyofthisbook.)OtherMethodology:ActivityBasedModeling2EstimatingGuidelines-Softwareselectionshouldbecarriedoutwiththefullclientteam,aspartoftheengagement.-Smallpilotprojectsshouldbecompletedfirsttobetterunderstandmodelingrequirementsaswellassystemrequirements.-Softwareandtrainingtypicallyfalloutsideoftheengagement.Explicitlyincludeorexcludethesecostsinyourproposal.-Dependingontheskillsonyourteam,youmaybeabletointegratethetrainingintotheproject,reducingtheoverallcostoftrainingandincreasingtheimpactofthattraining.(JITorOJTtraining.)FeesPilotprojectsrangefrom$20,000-200,000dependingonthesizeofthepilot,thelevelofparticipationwiththeclient,andtheclient’sresourcecommitments.RiskManagementThebiggestrisksinbuildingmodelsisthatyoutrytobuildamodelto“doitall.”Focusontheclient’skeyobjectivesanddon’tletthemodelbecomeananswertoeveryconceivablequestion.Remindclientsthatmodelswillevolve.Thefirstmodelwillnotansweralloftheirquestions,butthemodelcanbechangedasneedschange(ormultiplemodelscanbebuilt.)Methodology:ActivityBasedModeling3Phase1:RequirementsAssessmentOverviewDuringtheRequirementsAssessmentphaseyoushouldidentifytheclient’sneeds,clarifyandconfirmprojectexpectations,andtailoraWorkplantotheclientsneedsandresources.ItisatthisphaseyouwilldetermineiftheclientwouldbenefitfromanABCorABMapproach.Timewellspentinthis...
