Automated activity-based management system

• US 5,799,286 A
• Filed: 06/07/1995
• Issued: 08/25/1998
• Est. Priority Date: 06/07/1995
• Status: Expired due to Term

• Current Assignee: Google LLC (Alphabet Inc.)
• Original Assignee: Electronic Data Systems Corporation (Perspecta, Inc.)
• Inventors: Smith, Patricia Ann, Morgan, James Joseph, Mason, Eric Todd, Johnson, Terry Lee, Wells, Kathryn Louise, Bradford, William Howell, Keefer, Leah Ellen
• Primary Examiner(s): Weinhardt, Robert A.
• Assistant Examiner(s): Graff, Phillip
• Application Number:
  US08/488,003
• Time in Patent Office: 1,175 Days
• Field of Search: 364/401 R, 364/402, 364/406, 364/464.01, 364/235, 364/377, 395/207, 395/208, 395/209, 395/230, 395/232, 705/7, 705/8, 705/9, 705/30, 705/32
• US Class Current: 705/30
• CPC Class Codes: G06Q 10/0631 Resource planning, allocation, distributing or scheduling for enterprises or organisations
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

An automated activity-based management system and method (10) for making thereof are provided. A business organization has costs associated with its employees, facilities, equipment, and overhead to produce products or provide services. Such a business organization typically generates traditional general ledger accounting information (152) and human resources information (150). This traditional accounting information (150, 152, 154) is used along with information directed to activities, equipment usage and facilities utilization to generate costs associated with activities performed by the organization. A computer workstation (40) with a graphical user interface (42) is used to accept entries of activity information (74). The activity information and traditional accounting information are fed to a relational database (12). The information is processed and costs associated with the employee, facilities, equipment, and overhead components (20, 22, 24, 26) of activities are computed. User-definable ad-hoc reports as well as preformated reports for trending, forecasting, comparison, benchmarking, and budgeting purposes are generated.

Claims

1. An automated activity-based management system for a business organization having costs associated with its people, facilities, and equipment to produce products and/or provide services, said business organization having accounting information including an accounting structure and expenses stored electronically in a storage device, comprising;

at least one computer workstation having an user interface accepting activity information including information related to percentages of time spent on each activity by the people, and utilization information related to said facilities and equipment;

a relational database coupled to said storage device and said at least one computer workstation automatically downloading, receiving and storing said accounting information from said storage device, and receiving said activity information from said computer workstation; and

a database server coupled to said relational database and said computer workstation dynamically processing said accounting information and said activity information in response to requests received from said computer workstation, and mapping said expenses to the costs associated with the people, facilities, and equipment components of each activity, to determine a component cost allocation for each activity.

2. The automated activity-based management system, as set forth in claim 1, further comprising:

a people module residing in the database server operable to process said accounting information and said activity information, and generate a people cost component associated with each activity;

a facilities module residing in the database server operable to process said accounting information and said activity information, and generate a facilities cost component associated with each activity; and

an equipment module residing in the database server operable to process said accounting information and said activity information, and generate an equipment cost component associated with each activity.

3. The automated activity-based management system, as set forth in claim 2, further comprising a reporting module generating reports having cost summaries based on said people, facilities, equipment, and overhead cost components of said activities.

4. The automated activity-based management system, as set forth in claim 3, wherein said cost summaries include trend reports, cost comparison reports, and benchmark reports.

5. The automated activity-based management system, as set forth in claim 3, wherein said reporting module further generates a forecast having people, facilities, equipment, and overhead cost projections.

6. The automated activity-based management system, as set forth in claim 3, wherein said reporting module further generates a budget having accounting information.

7. The automated activity-based management system, as set forth in claim 3, wherein said reporting module further includes a drill-down function module operable to provide varying depths of information and combinations of multiple activity attributes.

8. The automated activity-based management system, as set forth in claim 2, wherein the business organization also has costs associated with overhead, and the system further comprising an overhead module residing in the database server operable to process said accounting information and said activity information, and generate an overhead cost component associated with each activity.

9. The automated activity-based management system, as set forth in claim 1, wherein said accounting structure defines a plurality of responsibility centers, said expenses being captured in said responsibility centers.

10. The automated activity-based management system, as set forth in claim 9, wherein said relational database receives and stores an association relationship between said responsibility centers and at least one management organization.

11. The automated activity-based management system, as set forth in claim 1, wherein said relational database further receives and stores a master list of activities, a master list of attributes used to classify said activities, a master list of products, and a master list of equipment.

12. The automated activity-based management system, as set forth in claim 1, wherein said relational database further receives and stores activity percentage information representing the percentage of time spent by the people on each activity.

13. The automated activity-based management system, as set forth in claim 1, wherein said relational database further receives and stores facilities utilization information and equipment utilization information.

14. The automated activity-based management system, as set forth in claim 1, wherein said relational database receives and stores information associated with the business organization structure and how the employees fit within the structure.

15. The automated activity-based management system, as set forth in claim 1, wherein said relational database receives and stores information identifying those activities producing the products.

16. The automated activity-based management system, as set forth in claim 1, wherein said relational database further receives and stores a target cost per unit for each of said products.

17. The automated activity-based management system, as set forth in claim 1, wherein said relational database further receives and stores product drivers identifying at least one product resulting from each of said activities.

18. The automated activity-based management system, as set forth in claim 1, wherein said relational database further receives and stores human resources information including people names and job categories.

19. The automated activity-based management system, as set forth in claim 1, wherein said relational database further receives and stores access code data used for identifying equipment usage by customers and management organizations.

20. The automated activity-based management system, as set forth in claim 1, wherein said user interface is a graphical user interface.

21. The automated activity-based management system, as set forth in claim 1, wherein said storage device and said database server are connected in a computer network.

22. The automated activity-based management system, as set forth in claim 1, wherein said storage device, said database server, and said computer workstation are connected in a computer network.

23. An automated activity-based management system for a business organization occupying facilities, employing people and using equipment, the business organization generating traditional accounting information including accounting structures and expenses, comprising:

a relational database automatically receiving said traditional accounting information and accepting information related to activities provided by users, said activity information includes the activities performed, the percentage of time each activity is performed, equipment utilization data, and space utilization data;

a people module operable to process said traditional accounting information and said activity information and generate a people cost component associated with each activity;

a facilities module operable to process said traditional accounting information and said activity information and generate a facilities cost component associated with each activity;

an equipment module operable to process said traditional accounting information and said activity information and generate an equipment cost component associated with each activity; and

a reporting module operable to generate cost summaries, of said activities in response to said generated cost components.

24. The automated activity-based management system, as set forth in claim 23, wherein said business organization is divided into sites, and each site is divided into management organizations, and said equipment module further computes expenses to equipment used to perform the activities in each management organization.

25. The automated activity-based management system, as set forth in claim 24, wherein said relational database further receives and stores activity information including the types of equipment, the utilization rate of each equipment type for satisfying customer requirements and internal usage, and un-utilization rate.

26. The automated activity-based management system, as set forth in claim 25, wherein said equipment module further computes expenses to un-utilized equipment time, equipment utilization for satisfying customer requirements and for internal usage for each management organization.

27. The automated activity-based management system, as set forth in claim 26, wherein said equipment module further differentiates internal usage expenses incurred by people of a different site.

28. The automated activity-based management system, as set forth in claim 23, wherein said business organization is divided into sites, and each site is divided into management organizations, and said people module further allocates expenses to activities performed by the people of each management organization.

29. The automated activity-based management system, as set forth in claim 28, wherein said relational database further receives and stores activity information including people names and job categories for each management organization.

30. The automated activity-based management system, as set forth in claim 29, wherein said people module further computes expenses to activities performed by people of each management organization by job category.

31. The automated activity-based management system, as set forth in claim 23, wherein said business organization is divided into sites, and each site is divided into management organizations, and said facilities module further computes expenses to facilities used to perform the activities in each management organization.

32. The automated activity-based management system, as set forth in claim 31, wherein said relational database further receives and stores activity information including total amount of space at the site, amount of space utilized by people, and amount of space occupied by equipment.

33. The automated activity-based management system, as set forth in claim 32, wherein said facilities module further computes expenses to un-utilized space, space occupied by equipment, and space utilized by people to perform the activities in each management organization.

34. The automated activity-based management system, as set forth in claim 23, further comprising a reporting module generating reports having cost summaries based on said people, facilities, equipment, and overhead cost components of said activities.

35. The automated activity-based management system, as set forth in claim 34, wherein said cost summaries include trend reports, cost comparison reports, and benchmark reports.

36. The automated activity-based management system, as set forth in claim 34, wherein said reporting module further generates a forecast having people, facilities, equipment, and overhead cost projections.

37. The automated activity-based management system, as set forth in claim 34, wherein said reporting module further generates a budget having traditional accounting information.

38. The automated activity-based management system, as set forth in claim 34, wherein said reporting module further includes a drill-down function module.

39. The automated activity-based management system, as set forth in claim 23, wherein said traditional accounting information is stored on a storage device, said storage device downloads said traditional accounting information to said relational database.

40. The automated activity-based management system, as set forth in claim 39, further comprising a database server coupled to said relational database and a computer network connecting said storage device and said database server.

41. The automated activity-based management system, as set forth in claim 39, further comprising a database server coupled to said relational database and a computer network connecting said storage device, said database server, and said computer workstation.

42. The automated activity-based management system, as set forth in claim 23, wherein said business organization is divided into sites, and each site is divided into management organizations, and said overhead module further computes expenses to overhead costs in the performance of the activities in each management organization.

43. The automated activity-based management system, as set forth in claim 23, wherein said relational database further receives and stores a master list of activities, a master list of attributes used to classify said activities, a master list of products, and a master list of equipment.

44. The automated activity-based management system, as set forth in claim 23, wherein said relational database receives and stores information identifying those activities producing the products.

45. The automated activity-based management system, as set forth in claim 23, wherein said relational database further receives and stores a target cost per unit for each of said products.

46. The automated activity-based management system, as set forth in claim 23, wherein said relational database further receives and stores product drivers identifying at least one product resulting from each of said activities.

47. The automated activity-based management system, as set forth in claim 23, wherein said accounting structure defines a plurality of responsibility centers, and said business organizations is divided into management organizations, said expenses being captured in said responsibility centers, and said responsibility centers being mappable to said management organizations.

48. The automated activity-based management system, as set forth in claim 23, wherein said relational database further receives and stores human resources information including people names and job categories.

49. The automated activity-based management system, as set forth in claim 23, wherein said relational database further receives and stores access code data used for identifying equipment usage by customers and management organizations.

50. The automated activity-based management system, as set forth in claim 23, further comprising an overhead module operable to process said traditional accounting information and said activity information and generating an overhead cost component associated with each activity.

51. The automated activity-based management system, as set forth in claim 23, further comprising a computer workstation having a graphical user interface.

52. An automated activity-based method for managing a business organization, the business organization occupying facilities and having people using equipment, the business organization generating traditional accounting information including accounts and expenses, the method comprising the steps of:

automatically downloading the traditional accounting information to a relational database;

feeding activity information including activities performed by employees, the percentage of time employees spend on performing each activity, equipment utilization rates, and facility utilization to said relational database;

computing from the activity information and the accounting information a people cost component associated with each activity;

computing from the activity information and the accounting information a facilities cost component associated with each activity;

computing from the activity information and the accounting information an equipment cost component associated with each activity; and

generating reports summarizing said computed cost components associated with each activity.

53. The method, as set forth in claim 52, further comprising the step of computing an overhead cost component associated with each activity.

54. The method, as set forth in claim 53, wherein said overhead component cost computing step comprises the steps of:

computing an overhead cost by cost pool by responsibility center from the traditional accounting information accounts and expenses, the cost pools and responsibility centers being financial divisions of the business organization;

mapping the overhead cost by cost pool by responsibility center to management organizations, the management organizations being functional divisions of the business organization;

computing the overhead costs of the business organizations by management organization;

computing an overhead cost for each activity.

55. The method, as set forth in claim 54, wherein the step of feeding activity information includes the step of feeding overhead activity information, and the step of computing the overhead costs includes the step of computing the overhead activity cost by management organization based on the percentage of the activity people, equipment and facilities cost with respect to a total management organization cost.

56. The method, as set forth in claim 54, wherein the step of feeding activity information includes the step of feeding overhead activity information, and the step of computing the overhead costs includes the step of computing the overhead activity cost by management organization based on a predetermined percentage of a total management organization cost.

57. The method, as set forth in claim 54, wherein said facilities component cost computing step comprises the steps of:

computing a facilities cost by cost pool by responsibility center from the traditional accounting information accounts and expenses, the cost pools and responsibility centers being financial divisions of the business organization;

mapping the facilities cost by cost pool by responsibility center to management organizations, the management organizations being functional divisions of the business organization;

computing the facilities costs of the business organizations by facility usage;

computing a facilities cost for each activity.

58. The method, as set forth in claim 57, wherein the step of feeding activity information includes the step of feeding facility utilization by people, facility utilization by equipment, and un-utilized space, and the step of computing the facilities costs includes the step of computing the un-utilized space cost, equipment space cost, and people space cost.

59. The method, as set forth in claim 52, wherein said equipment component cost computing step comprises the steps of:

computing an equipment cost by cost pool by responsibility center from the traditional accounting information accounts and expenses, the cost pools and responsibility centers being financial divisions of the business organization;

mapping the equipment cost by cost pool by responsibility center to management organizations, the management organizations being functional divisions of the business organization;

computing the equipment costs of the business organizations by usage type;

computing an equipment cost for each activity.

60. The method, as set forth in claim 59, wherein the step of feeding activity information includes the step of feeding equipment utilization rate for customer use, equipment utilization rate internal, and un-utilization rate, and the step of computing the equipment costs includes the step of computing the un-utilized equipment cost, internal usage equipment cost, and customer usage equipment cost.

61. The method, as set forth in claim 57, wherein said people component cost computing step comprises the steps of:

computing a people cost by job category by responsibility center from the traditional accounting information accounts and expenses, the responsibility centers being financial divisions of the business organization;

mapping the people costs by job category by responsibility center to management organizations, the management organizations being functional divisions of the business organization;

computing a cost per employee by management organization by job category; and

computing a people cost for each activity.

62. The method, as set forth in claim 52, further comprising the steps of:

downloading human resources information; and

downloading product volume information and equipment access code information.

63. The method, as set forth in claim 52, wherein the step of feeding activity information includes the step of feeding a target cost per unit of product.

64. The method, as set forth in claim 52, wherein the step of feeding activity information includes the step of feeding product drivers identifying at least one product resulting from each of said activities.

65. The method, as set forth in claim 52, wherein the step of feeding activity information includes the step of feeding information mapping access codes supplied in the traditional accounting information to each management organization, the management organizations being functional divisions of the business organization.

66. The method, as set forth in claim 52, wherein the step of feeding activity information includes the step of feeding and maintaining a master activity dictionary.

67. The method, as set forth in claim 52, wherein the step of feeding activity information includes the step of feeding and maintaining a master attribute dictionary, attributes being labels used to classify activities.

68. The method, as set forth in claim 52, wherein the step of feeding activity information includes the step of feeding and maintaining a master product dictionary.

69. The method, as set forth in claim 52, wherein the step of feeding activity information includes the step of feeding and maintaining a master equipment dictionary.

70. The method, as set forth in claim 52, wherein the report generating step includes the step of generating a trend report.

71. The method, as set forth in claim 52, wherein the report generating step includes the step of generating a benchmark report.

72. The method, as set forth in claim 52, wherein the report generating step includes the step of generating a comparison report.

73. The method, as set forth in claim 52, wherein the report generating step includes the step of generating a forecast.

74. The method, as set forth in claim 52, wherein the report generating step included the step of generating a budget in traditional accounting information format.