ABIS~PRO
ABIS~PRO is a pioneering solution in the field of cost management, unearthing useful insights into issues that have been plaguing the bottom-line, including determination of cost per unit and net margin, cost reduction, cost control, pricing decision, make-or-buy decisions, variance analysis, budgeting, simulation, and product and customer profitability.
A proprietary product developed by Pro~Active Solutech, ABIS~PRO refers to an ‘Activity Based Information System’ that offers solutions for three top areas where companies need assistance:
- Strategic decision making with informed cost management
- Optimising and improving operations
- Maximising product and customer profitability
ABIS~PRO is a standalone software that can be integrated with different ERPs.
To date, we have implemented ABIS~PRO across 70 global locations, for companies in varied industries.
WHY YOU NEED IT
ABIS~PRO addresses some of the most intricate business challenges faced by businesses, which are not answered by currently available existing ERP/MIS systems.
- Why is the profit stagnant when revenue is increasing?
- Which product / customer is more profitable to the firm?
- Should I produce a product in-house or procure it?
- Should I undertake a process in-house or outsource it?
- At what price should I agree to supply to a particular customer?
- What is the best price I can offer to my vendor?
- What is the impact of improvement initiatives / design changes on product cost?
- What is the impact of changes in BOM and currency fluctuations on input costs and final product costs?
- What is the optimum batch size?
- Which processes / activities are driving a product’s cost and how it can be optimised?
- How much am I spending on non-value added activities?
- What is the impact of underutilization of capacity on product costs?
How Does ABIS~PRO Work?
ABIS~PRO goes beyond calculating and reporting costs.
It focuses on the integration of information into the decision making process, by producing the required cost and profitability information in a reliable, relevant and timely manner. This is the key to steer the company’s operations towards improved performance management.
- Analyses profitability per customer, product, segment, geography, and so on
- Enables better decisions on product pricing and mix, make-or-buy, and Investment decisions
- Helps manage product and customer portfolio optimally to maximise profitability
- Enables effective control of business processes through Activity Based Management (ABM)
- Tracks resource consumption and identifies spare resources that are not being put to optimal use
- Identifies costs related to non-value added activities
Implementation Process
Implementation of ABIS~PRO generally involves four major phases:
Specifications and Design Freeze
- Study the operations at the client’s facilities
- Spend time understanding with various functional heads to understand the existing systems and the exact requirements
- Delve into the technical aspects, including integration with other IT systems
- Note down necessary customisations needed
- Submit a design freeze report to the clients, clearly stating the proposed configuration and deliverables
Implementation
- Post receiving the client’s approval, work on necessary customisations to the software and implementation of the functionalities as required
- Configure all necessary interfaces with ERP and other IT systems
Trial Runs
- Client is given access to a fully operational and exclusively customised costing system
- Quality of the output is checked with trial runs, where actual data from the client is processed
- The results are shared with the management for a detailed discussion
Rollout
- After the sign-off by the client, comprehensive training is provided to the end-users
- Roll out begins
- Post implementation, further assistance is provided through the support team
Schedule a Demo with our team.
CLIENTS HAD TO SAY
"We approached Pro~Active Solutech to help with ABIS~PRO costing system implementation. Earlier, in our SAP system, cost (with an exception of material) was calculated at an aggregate level. This resulted in cost distortion across products and customers. Furthermore, the efficiency of individual processes could not be assessed objectively. Post the new system implementation, we were able to identify expenses to process using drivers that reflect the causality. This enabled the management to target shopfloor improvements via higher capacity utilisation, optimal manpower mix, reduced down time and optimal product mix. We were also able to optimise power consumption by identifying the correlation between units consumed and melting volume, in fixed and variable components of power. These are among several new data points we were able to unearth in terms of product profitability reporting and customer profitability reporting."
CEO of an automotive parts organisation,
which benefited from ABIS~PRO implementation"ABIS~PRO’s modelling tool enabled us to speed up our decision-making process and seize profitable opportunities."
Head – Finance of a dairy products manufacturing plant in the Middle East,
which benefited from ABIS~PRO implementation"ABC has helped us in having a clear picture of our past operations. It has enabled us to understand the profitability mix of our products. It has also lent valuable support in understanding customer-wise profitability. This has helped us to shift our focus from segments yielding less returns to segments yielding higher returns. We also expect to use it as a tool for our budgetary requirements"
Manager – Internal Audit & Costing of a dairy products manufacturing plant in the Middle East,
which benefited from ABIS~PRO implementation
Pro~Active Solutech is a Management Consulting Company with Total Cost Management and Enterprise Performance Management (EPM), Corporate Advisory and Legal Support. Enterprise Performance Management is the integration of multiple managerial methods to improve an organisation’s strategic and operational performance.
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