“In addition to promoting benchmarking actions, supporting the asset valuation of stocks, and helping to set public prices, the use of the MyABCM solution has optimized the practice of measuring unit costs for the benefit of continuous improvement and quality goals of public spending within the Air Force.”
Samara Lima e Andrade
Captain
Brazilian Air Force
COMPANY
Founded in 1942, FAYS has an area of 6,502 hectares in the State of São Paulo. It is a Military Organization of the Brazilian Air Force, whose mission is the productive occupation of the land of the Pirassununga Air Force Garrison with agricultural activities, resulting in the production of foodstuffs that are sold internally and externally to the organization, according to the Strategic Planning in force.
CHALLENGE
Public opinion has become increasingly demanding regarding the efficiency of public management and the optimization and improvement of public spending, culminating in strengthening the cost culture as a promising solution to achieve these goals. FAYS surveyed the costs of processes and macro-processes to meet the organizational need for knowledge of historical unit cost of assets produced by the Treasury. They also studied ways to track indirect costs to assist management.
SOLUTION
Among the available options to improve the quality of public spending and know the unit cost of produced assets, the ABC (Activity Based Costing) method was the most appropriate. From the study of the specific case and the construction of cost matrices that reflect the management practices, the application of the ABC method allowed the in-depth analysis of primary processes, those considered essential for the fulfillment of the institutional mission, with their respective allocations along the complex chain designed. In turn, the use of the MyABCM software made it possible, in an uncomplicated way, to mathematically operationalize the calculations for the measurements of interest, making the project feasible.
RESULTS
Beyond guiding the setting of public pricing, the valuation of production stocks, the retro analysis of operational practices employed in the production chain, the promotion of performance improvement of managers through benchmarking actions, product reengineering, waste reduction, as well as the feasibility of changes in the current portfolio, the practice of measuring unit costs of goods produced by the Treasury can certainly be used as a tool for continuous improvement for the organization.
The MyABCM software made it easy to mathematically operationalize calculations for unit cost measurements, making the project feasible.
