Budget Model Formation Tools for Activity and Project-Based Budgeting

Upravlenie ◽  
2015 ◽  
Vol 3 (4) ◽  
pp. 49-54
Author(s):  
Траченко ◽  
Marina Trachenko ◽  
Мищенко ◽  
L. Mishchenko
Keyword(s):  
Business Processes ◽  
Financial Indicators ◽  
Budget Model ◽  
Financial Responsibility ◽  
Management Technology ◽  
The Matrix ◽  
Balanced Scorecards ◽  
Implementation Time ◽  
Enterprise Level ◽  
Model Formation

Activity-based budgeting (ABB) and project-based budgeting (project budgeting) are important trends of budgeting at an enterprise level. The paper authors have systematized factors of formation for directions of the activity-based and project-based budgeting, have characterized these directions’ budget models and revealed their specific features. The main specific features of activity-based budgeting model are the matrix (or more complex, multidimensional) structure of the budget model, interrelation of business processes’ budget items with key performance indicators and balanced scorecards (thus the model focused on strategy), simultaneous incorporation of financial indicators describing a business process into the budgets of business processes, budgets of CFR (Centers for Financial Responsibility) units, or project budgets, and a number of other specific features. The most important particulars of the project-based budgeting model is the integration of master budgets, operational and support budgets with project budgets within a budget model, the use of project budgets as a link between project management and budgeting as a management technology, and others particulars. The paper authors have developed a tool for the ABB budget model formation, which includes two algorithms. The first one is the algorithm for ABB model formation based on the budgets of CFR acting as expense providers, from the perspective of CFR units. The algorithm relies on the budgets of expense-providing Centers for Financial Responsibility. These Centers control the expenses of all CFR by certain business processes and items. The second one is the algorithm for the more detailed ABB model formation based on the budgets of business processes that are structured for analytical purposes (other than CFR units). This algorithm is intended for building a more detailed ABB model and implies the allocation of analytical sections like “CFR”, “Business Processes” and other analytics. It has been proposed to use a standard project budget a as a tool to solve the problem of matching the individual projects implementation time with the budget period. The standard budget is developed for the project’s entire life, in conjunction with the Project Budget, the indicators of which describe the project in a certain budget period.

CRITICAL ANALYSIS OF APPROACHES TO ASSESSING THE IMPACT OF BUSINESS PROCESSES ON THE FINANCIAL PERFORMANCE OF AN ORGANIZATION

2021 ◽  
Vol 4 (4) ◽  
pp. 201-205
Author(s):  
A. L. GENDON ◽  
◽  
G. F. GOLUBEVA ◽  
Keyword(s):  
Financial Performance ◽  
Critical Analysis ◽  
Business Processes ◽  
International Standards ◽  
Financial Indicators ◽  
Life Activity ◽  
Cost Of Production ◽  
The Cost ◽  
The Impact

The article reveals a system of financial indicators that characterize business processes, accounting for income and expenses according to Russian and international standards. The ways of increasing the efficiency of the company's life activity, in particular, the ways of reducing the cost of production, are considered.

scholarly journals The Credit Asset of Enterprise Accounts Receivable Pricing Model

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-16
Author(s):  
Deshun Xu ◽  
Junhai Ma
Keyword(s):  
Intrinsic Value ◽  
Default Probability ◽  
Financial Indicators ◽  
Pricing Model ◽  
Loss Given Default ◽  
Accounts Receivable ◽  
Kmv Model ◽  
Management Technology ◽  
Overall Evaluation ◽  
Control Management

Based on the thinking of holism and reductionism, this paper creatively constructed the credit asset pricing model of enterprises’ accounts receivable, namely, the BEST pricing model, and it was demonstrated effectively. The model gave an overall evaluation on the default probability of buyer and environment, as well as buyer loss given default resulting from the factors including Seller (S), Buyer (B), and Environment (E). The model is also utilized with the optimal control management Technology (T) to maximize the intrinsic value of the credit asset. The paper put forward the Duration of accounts receivable aging, measurement method of dynamic free interest rate, and amended the KMV model to solve the default probability of accounts receivable of listed and nonlisted companies. To evaluate the credit asset risk, the following were selected: three effective financial indicators, seven nonfinancial index clusters, and sixty-three specific nonfinancial index variables of the buyer; one index and eight specific indicators of the seller; and one index and fourteen specific indicators of nonsystematic risk of the environment. Five appropriate hedge parameters are used to control the risk.

scholarly journals The Socioeconomic Bases of Biofuels Production Business at the Organizational Level

2021 ◽  
Vol 5 (520) ◽  
pp. 175-187
Author(s):  
R. V. Lohosha ◽  
◽  
I. A. Semchuk ◽  
Keyword(s):  
Business Processes ◽  
Raw Materials ◽  
Biofuel Production ◽  
Organizational Level ◽  
Technological Support ◽  
Agricultural Enterprises ◽  
Efficient Management ◽  
The Matrix ◽  
Scientific Substantiation ◽  
The One

The article is aimed at defining the priorities for the development of the biofuel market in Ukraine to ensure the energy security of the country and satisfy the country’s energy needs. Prospects for the bioenergy sector of the economy in the world will be determined primarily by the optimization of national policies in the matrix of multifarious criteria. The place of the Ukrainian model is highly likely to be determined, on the one hand, by the development of the national market, on the other hand, by the production of raw materials for world biofuel markets. At the same time, this market and production in Ukraine remains only a potentially promising model that requires a scientific substantiation for its efficiency. As a result of the study, it is specified that the bioenergy industry has serious limitations and problems of economic nature that require scientific substantiation. After analyzing the limitations and prospects of the industry development in Ukraine at the level of agricultural enterprises that could deploy biofuel production, it should be emphasized that: 1) there is currently no biofuel market in Ukraine: there is no significant production, hence the proposal still remains unformed; there are no agents (firms, enterprises) of the market that would form the established demand; the necessary norms, institutions, mechanisms of the representative market have not been developed; 2) there is no successful experience of such a business both in Ukraine in general and in agricultural enterprises in particular. From here, as well as taking into account the above-mentioned aspects, the attractiveness of this business, including investment, needs to be justified. Enterprises of this group will face funding problems, as well as technical and technological support problems. Therefore, special careful economic substantiation of the market efficiency model and business processes is required; 3) because of these reasons, the task of scientific substantiation of the model of efficient management of this business becomes highly topical.

scholarly journals Solvency control of the enterprise in the bankruptcy prevention system

2020 ◽  
Vol 4 (2) ◽  
pp. 14-23
Author(s):  
Hanna Sytnyk ◽  
Inna Olesenko
Keyword(s):  
Control System ◽  
Financial Management ◽  
Financial Responsibility ◽  
Coverage Ratio ◽  
Total Capital ◽  
Logical Sequence ◽  
The Matrix ◽  
Control Procedures ◽  
Recent Trends ◽  
Control Circuits

Introduction. Recent trends in the economy, in particular the situation with COVID-19 epidemic, will contribute to the deterioration of the level of solvency, financial security of enterprises, and, as consequence, increasing the number of bankruptcies. Constant monitoring of the solvency level is a necessary element of anti-crisis financial management and a tool to prevent bankruptcy. That is why the development of methodological bases and methodological approaches to solvency control is an important area of research. Aim and tasks. The aim of the article is to substantiate the solvency control system of the enterprise, which would cover the identification of the main control indicators, methods of control over individual control circuits, the formation of a clear structural and logical sequence of this process. Results. The tendency of increasing the share of current liabilities in the total capital of the enterprise, decreasing the value of the financial autonomy ratio and total coverage ratio, which indicates a problematic state of solvency of Ukrainian enterprises was investigated. The solvency control system elements of the enterprise were determined: objects, subject, purpose, functions, functional directions, components of the control according to the management contours. The characteristic of solvency control according to the management contours (strategic, current, operational) was described more detailed. The gradation of the deviation scales in a solvency condition of the enterprise was improved and the matrix of decisions in which directions of the reaction on type and scale of deviations were defined was composed. Conclusions. In order to avoid bankruptcy, the enterprise must adhere to the financial discipline, be aware of financial responsibility and constantly improve management mechanisms, especially preventive anti-crisis methods, which should include a solvency control. The proposed approach to controlling is expected to provide a comprehensive nature of solvency control as an important component of preventive anti-crisis management aimed at preventing bankruptcy. Complexity is achieved by the consistency of the control procedures on the control contours, differentiation of the control tools, identification of possible deviations and ways to respond to them.

scholarly journals THE EFFECTIVENESS OF ENSURING THE FINANCIAL STABILITY OF THE RESTAURANT BUSINESS IN THE CRISIS COVID-19

2020 ◽  
Author(s):  
Liudmyla Batchenko ◽  
◽  
Liliia Honchar ◽  
Andrii Beliak ◽  
◽  
...  
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Hospitality Industry ◽  
Business Environment ◽  
Financial Indicators ◽  
Financial Condition ◽  
The Matrix ◽  
A Chain ◽  
Key Indicators ◽  
Enterprise Policy

The study identifies and systematizes key indicators and criteria for ensuring the financial stability of the restaurant business. The complex and thorough analysis of features of maintenance of financial stability of the enterprises of restaurant business on an example of one of restaurants of a chain of the Japanese kitchen of LLC «Sushiya» is carried out. After analyzing the key indicators of financial and economic activity of the restaurant, using the method of complex calculation of the rating of the financial condition of enterprises in the hospitality industry, the level of financial stability of the studied enterprise is determined. Based on the results of practice-oriented analysis, the ranking of financial management goals by the degree of impact on the financial stability of the enterprise. The mechanism of ensuring financial stability of restaurant business enterprises is modeled. The developed and substantiated mechanism is based on a unique methodology, which, unlike existing ones, is adapted to the field of hospitality, is carried out by specific tactical and strategic tools of financial management, based on the chosen type of enterprise policy; takes into account the dynamics of the main financial indicators of the enterprise, which is planned to implement the mechanism and the possible impact of factors of the external changing business environment. With the help of the matrix of financial strategies of J. Franchon and I. Romane, the position of the restaurant «Sushiya-Lavina» is determined and the methodological tools for improving the efficiency of its financial stability are substantiated.

An Exploratory Study of Infrastructure Barriers and the Role of Semantic Data Exchange Technologies in the Provisioning of Business Intelligence Services

2012 ◽  
Vol 3 (3) ◽  
pp. 45-59
Author(s):  
Rubén A. Mendoza
Keyword(s):  
Business Intelligence ◽  
Data Exchange ◽  
Business Processes ◽  
Technology Development ◽  
Semantic Data ◽  
Intelligence Services ◽  
The Status ◽  
Enterprise Level ◽  
It Executives

Business Intelligence (BI) has been a top technology development concern for high-ranking IT executives over the past decade. The objective of BI is to use data analysis as a competitive weapon, deeply integrated into business processes. The ability of an organization to provide enterprise-level BI services depends heavily on its IT strategy, itself a function of existing technology investment. Previous research has described four IT architecture stages ranging from isolated applications to modular services, each with increasing complexity and service capabilities. Representatives from four companies were interviewed about the status of their BI activities, and the resulting data helps identify common barriers faced by these organizations in the provisioning of enterprise-level BI services. Interview results also describe the success of a limited-scope operational BI system by one of these firms, and the role of semantic data exchange technologies, primarily XML, in this system.

scholarly journals A Set of Best Practices to Design Face-to-face Teaching Sessions for Technology-centered University-level Computing Courses

2014 ◽  
Vol 4 (4) ◽  
pp. 59
Author(s):  
Ilse Baumgartner
Keyword(s):  
Higher Education ◽  
Information Systems ◽  
Best Practices ◽  
Business Processes ◽  
Information Systems Management ◽  
Computing Education ◽  
Face To Face ◽  
Level Information ◽  
Enterprise Level ◽  
Working Set

Since more than a decade, all kinds of businesses and organisations are intensively exploring enterprise-level information systems to better integrate their business processes, information flows and people. Consequently, the industry demands for technically skilled, but also “business-savvy” IT professionals are permanently growing. To meet this need, more and more computing education programs try to incorporate enterprise-level information systems into their curricula. While there is some computing education research done to investigate the need for this new type of IT-business professional and to analyse general implications for higher education, only very few research works or practice papers exist which report on concrete attempts to design and deliver higher education computing courses which intensively use enterprise-level systems. In this paper, the author reports on a series of experiences made within the Bachelor of Science (Information Systems Management) degree program offered by the School of Information Systems (SIS) at the Singapore Management University (SMU). The primary focus of this paper is put on establishing a working set of best practices for the design of an effective structure of the face-to-face teaching sessions for courses which use enterprise-level systems and applications in their curricula. While this paper is principally based on education experiences made within the frame of an Information Systems program, the best practices presented in this paper are equally applicable to any other computing education field or even to the engineering education in general.

Improving the Industrial System Performance by Using the Balanced Scorecard Instrument

2015 ◽  
Vol 808 ◽  
pp. 370-375
Author(s):  
Flavia Fechete ◽  
Anișor Nedelcu
Keyword(s):  
Balanced Scorecard ◽  
Business Processes ◽  
Industrial System ◽  
Financial Indicators ◽  
The Balanced Scorecard ◽  
Critical Areas ◽  
Future Success ◽  
Comprehensive Picture ◽  
Strategy Map ◽  
The Impact

Nowadays, managers recognize the impact that measures have in performance. The balanced scorecard is a new tool that complements traditional measures of business unit performance. The scorecard contains a diverse set of performance measures, including financial performance, customer relations, internal business processes, and learning and growth.The Balanced Scorecard provides leaders with a process to describe strategy – both what the organization wants to accomplish and how it intends to realize its strategic outcomes. Taking all the objectives and measures together into a strategy map of cause-and-effect relationship across the four perspectives provides a comprehensive picture of the organization’s value creating activities.The analysis developed in this paper aims is to examine the critical areas of an industrial system as product, process, customer and market perspective. The study will provide managers four different perspective from which to choose measures: from traditional financial indicators, to measures for improving customer satisfaction, internal processes and innovation and improvement activities, focusing on the company’s current and future success.

scholarly journals New Japan Production Model, An Advanced Production Management Principle - Key To Strategic Implementation Of New JIT

2011 ◽  
Vol 6 (7) ◽  
Author(s):  
Kakuro Amasaka
Keyword(s):  
Production System ◽  
Production Management ◽  
Business Processes ◽  
Production Model ◽  
Software Systems ◽  
Production Cycle ◽  
Management Technology ◽  
Strategic Implementation ◽  
Management Principle ◽  
Advanced Production

An advanced production management principle, the New Japan Production Model to further advance TPS (Toyota Production System) called the Advanced TPS is proposed, which involves the systematization of Japanese production management methodology for strategic production. The New Japan Production Modela new management technology principle, proposed and verified in previous studieswas developed through establishing a Global Production Technology and Management Model based on New JIT utilizing three core technologies (TMS, TDS, and TPS), which relates to hardware systems, and Science TQM, which relates to software systems. Formation of the model through utilization of these core technologies signifies the high linkage of business processes that enables a speedy production cycle by using Intelligent Quality Control System, TPS-QAS, Highly Reliable Production System, V-MICS, Renovating Work Environment, TPS-IWQM and Bringing up Intelligent Operators, V-IOS. Effectiveness of the proposed New Japan Production Model was verified at Toyota Motor Corporation.

scholarly journals Modeling of the System of Evaluation of Retail Enterprises on the Basis of KPI and Process Approach

2021 ◽  
Vol 4 (519) ◽  
pp. 66-72
Author(s):  
O. S. Podskrebko ◽  
◽  
N. O. Ivanchenko ◽  
V. V. Tkachenko ◽  
◽  
...  
Keyword(s):  
Environmental Conditions ◽  
Performance Indicators ◽  
Business Processes ◽  
Process Approach ◽  
Retail Trade ◽  
Financial Indicators ◽  
Key Factors ◽  
Modeling And Forecasting ◽  
Retail Enterprise

The article proposes a model for evaluating the activities of retail enterprise, which is based on five stages and allows determining ways to increase the efficiency of functioning, which will improve the adaptive properties of the economic object. The analysis of types of KPI is carried out, process and functional approaches are identified as the main ones for the direct development of key performance indicators, as well as the characteristics of the evaluation of effective marketing at enterprises, including those that function in the sphere of retail trade, are determined. The authors considered how modeling and forecasting of key financial indicators of an enterprise contribute to the creation of strategies for its development. The article notes that for the initial evaluation of a retail enterprise focused on long-term success, it is mandatory to conduct an audit aimed at assessing the efficiency of the economic object and defining how quickly the enterprise adapts to dynamic environmental conditions. The carried out analysis allowed to identify the key factors that contribute to an improvement of the enterprise’s operation. Also, on the example of the Isikawa diagram, the ratio of KPI, strategies and understanding of business processes was considered in order to set, control and analyze the achievement of goals.

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