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Improving Library Management by Using Cost Analysis Tools: A Case Study for Cataloguing Processes
26 June 2013
Siguenza-Guzman Lorena,
Van den Abbeele Alexandra,
Cattrysse Dirk
Introduction
WordPress.com. (2012). Due to budget cutsβ¦. Seattle Peopleβs Library. Retrieved from http://duetobudgetcuts.wordpress.com/about/.
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Introduction
Provide high-quality services at lower costs
Nixon, G. (2012, October). Reading Comprehension Skills. Can They Be Bought? Inside Learning: Gemm blog on the science of reading and learning. Retrieved from http://www.gemmlearning.com/blog/education_trends/reading-comprehension-skills-can-they-be-bought/
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β’ Time-Driven Activity-Based Costing
Kaplan, R. S. and Anderson, S. R. (2004). βTime-Driven Activity-Based Costingβ. Harvard Business Review, pp. 131-138.
Simplicity
Model complex
operations Good estimation
Faster maintenance
Predictive option
TDABC
Costing Systems
TDABC
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Time-Driven Activity-Based Costing
Step 1
β’ Step 2
β’
Step 3
β’
Step 4
β’
Step 5
β’
Step 6
β’
Everaert, P., Bruggeman, W., Sarens, G., Anderson, S. R., & Levant, Y. (2008). Cost modeling in logistics using time-driven ABC: Experiences from a wholesaler. International Journal of Physical Distribution & Logistics Management, 38(3), 172β191
πΆππ π‘πππ π’πππ‘ π‘πππ=ΒΏ π‘ππ‘πππππ π‘ππ hπ‘ ππππ ππ’ππππππππ‘ππππ πππππππ‘π¦
πΌππππ‘ππππππ‘πππππ πππ ππ’πππππππ’ππ
πΈπ π‘ππππ‘πππππ hπ‘ ππ‘ππ‘πππππ π‘ ππ hπππ πππ ππ’πππππππ’π
πΈπ π‘ππππ‘πππππ πππππ‘πππππππππππ‘π¦
π·ππ‘ππππππππ hπ‘ ππ‘πππππ’πππ‘ππππππ πππ‘ππ£ππ‘π¦
πΆππ π‘ππ ππ πππππ£πππ’πππππ‘ππ£ππ‘π¦=ΒΏππ’πππ‘ππππ‘πππβπππ ππ’ππππππ π‘
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TDABC in Cataloguing Processes
Search an item on the LMS
New bibliographic description
New holding description
New item description
Print label
Stick label on the item
Bring the item to front desk
Tag the item
Shelve the item
β’ Step 1: Identification of resource groups
Original Cataloguing
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TDABC in Cataloguing Processes
Search an item on the LMS
Modify bibliographic description
New holding description
New item description
Print label
Stick label on the item
Bring the item to front desk
Tag the item
Shelve the item
β’ Step 1: Identification of resource groups
Copy Cataloguing
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TDABC in Cataloguing Processes
TOTAL COST PER RESOURCE GROUP
Resource Groups Costs (β¬)Cataloguers β¬ 59,000Library Management System β¬ 17,000Machine maintenance β¬ 5,000RFID maintenance β¬ 13,000General Overhead β¬ 9,500
β’ Step 2: Estimation of the total cost
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TDABC in Cataloguing Processes
β’ Step 3: Estimation of practical capacity
Assumingβ
β’ breaks, arrival and departure, training, meetings, and chitchats;
β β’ maintenance, repair, and scheduling fluctuations
β’ Step 4: Calculation of the unit cost of each resource group
80% ππ hπ‘ πππππ‘πππππππππππ‘π¦ πππ ππππππ
85% ππ hπ‘ πππππ‘πππππππππππ‘π¦ πππ hπππ ππππ
πΆππ π‘πππ π’πππ‘ π‘πππ=π‘ππ‘πππππ π‘ ππ hπ‘ ππππ ππ’πππ
πππππ‘ππππ πππππππ‘π¦
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β’ Step 4: Calculation of the unit cost of each resource group
TDABC in Cataloguing Processes
TOTAL COST PER MINUTE FOR THE DIFFERENT RESOURCE GROUPS
Resource Groups Cost (β¬/min)Cataloguers 0.62Library Management System 0.18Machine maintenance 0.05RFID maintenance 0.14General Overhead 0.10
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TDABC in Cataloguing Processes
β’ Step 5: Determining the time duration for each activity
β Direct observation
β
β
β
(Ξ²0+Ξ²1 X1+Ξ²2 X 2+ Ξ²3 X3+Ξ²4 X4+ Ξ²5 X 5+β¦+ Ξ²i X i)ππππππππ’πππππ‘πππππππππππππ‘ππ£ππ‘π¦=ΒΏ
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( hπππππ πππ+πππ€π΅πππ·ππ π+πππ€π»ππ ππ·ππ π
+πππ€ πΌπ‘πππ·ππ π+πππππ‘ππππΏππππ+ππ‘πππππππΏππππ+π΅πππππππππ‘ππ+πππππππ+ hπ πππ£πππ)
ππππππππ πΆππ‘πππππ’πππ=ΒΏ
(57 π +306π +31π +14 π +30π +29π +30 π +40 π +168 π )ππππππππ πΆππ‘πππππ’πππ=ΒΏ
TDABC in Cataloguing Processes
β’ Step 6: Multiplying the unit cost of each resource group by the time duration per activity
πΆππ π‘ππ ππ πππππ£πππ’πππππ‘ππ£ππ‘π¦=ΒΏπ‘πππππππ’πππππ‘πππππππππππππ‘ππ£ππ‘π¦ βπππ ππ’ππππππ π‘
πππ‘πππΆππ π‘ππ πππππππ π =ΒΏβ πππ π‘π ππ πππππ£πππ’πππππ‘ππ£ππ‘πππ
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TDABC in Cataloguing Processes
ORIGINAL CATALOGUING
ActivityAverage
Time (min)
Cost per min
(β¬/min)Cost (β¬) Resources
Searching the item 0.95 0.95 0.90 Cataloguer + LMS + Machines + GO
New bibliog. description 5.10 0.95 4.85 Cataloguer + LMS + Machines + GO
New holding description 0.51 0.95 0.48 Cataloguer + LMS + Machines + GO
New item description 0.24 0.95 0.23 Cataloguer + LMS + Machines + GO
Print label 0.50 0.95 0.48 Cataloguer + LMS + Machines + GO
Stick label on the item 0.48 0.72 0.35 Cataloguer + GO
Bring item to front desk 0.50 0.72 0.36 Cataloguer + GO
Tag the item 0.67 1.39 0.93 Cataloguer + LMS + Machines + GO
Shelve the item 2.80 0.72 2.02 Cataloguer + GO
TOTAL 11.75 10.5913
TDABC in Cataloguing Processes
COPY CATALOGUING
ActivityAverage
Time (min)
Cost per min
(β¬/min)Cost (β¬) Resources
Searching the item 0.95 0.95 0.90 Cataloguer + LMS + Machines + GO
Mod. bibliog. description 1.24 0.95 1.18 Cataloguer + LMS + Machines + GO
New holding description 0.51 0.95 0.48 Cataloguer + LMS + Machines + GO
New item description 0.24 0.95 0.23 Cataloguer + LMS + Machines + GO
Print label 0.50 0.95 0.48 Cataloguer + LMS + Machines + GO
Stick label on the item 0.48 0.72 0.35 Cataloguer + GO
Bring item to front desk 0.50 0.72 0.36 Cataloguer + GO
Tag the item 0.67 1.39 0.93 Cataloguer + LMS + Machines + GO
Shelve the item 2.80 0.72 2.02 Cataloguer + GO
TOTAL 7.89 6.9214
Original Copy Original CopyTime Cost
0
2
4
6
8
10
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White FillShelvingLabellingProcessing
Original vs. Copy Cataloguing
33%35%
15
0
1
2
3
4
5
6
0%
20%
40%
60%
80%
100%
TimePer-centage
Original vs. Copy Cataloguing
0
1
2
3
4
5
6
0%
20%
40%
60%
80%
100%Original Cataloguing Copy Cataloguing
Original vs. Copy Cataloguing
ORIGINAL CATALOGUING
ActivityAverage
Time (min)
Cost per min
(β¬/min)Cost (β¬) Resources
Searching the item 0.95 0.95 0.90 Cataloguer + LMS + Machines + GO
New bibliog. description 5.10 0.95 4.85 Cataloguer + LMS + Machines + GO
New holding description 0.51 0.95 0.48 Cataloguer + LMS + Machines + GO
New item description 0.24 0.95 0.23 Cataloguer + LMS + Machines + GO
Print label 0.50 0.95 0.48 Cataloguer + LMS + Machines + GO
Stick label on the item 0.48 0.72 0.35 Cataloguer + GO
Bring item to front desk 0.50 0.72 0.36 Cataloguer + GO
Tag the item 0.67 1.39 0.93 Cataloguer + LMS + Machines + GO
Shelve the item 2.80 0.72 2.02 Cataloguer + GO
TOTAL 11.75 10.59 17
RISK?
YES
NO
What-if?
β’ Simulate the effect of delegating labelling activities to SLE
Original vs. Copy Cataloguing
ORIGINAL CATALOGUING
ActivityAverage
Time (min)
Cost per min
(β¬/min)Cost (β¬) Resources
Searching the item 0.95 0.95 0.90 Cataloguer + LMS + Machines + GO
New bibliog. description 5.10 0.95 4.85 Cataloguer + LMS + Machines + GO
New holding description 0.51 0.95 0.48 Cataloguer + LMS + Machines + GO
New item description 0.24 0.95 0.23 Cataloguer + LMS + Machines + GO
Print label 0.50 0.63 0.32 SLE + LMS + Machines + GO
Stick label on the item 0.48 0.40 0.19 SLE + GO
Bring item to front desk 0.50 0.40 0.20 SLE + GO
Tag the item 0.67 1.07 0.72 SLE + LMS + Machines + GO
Shelve the item 2.80 0.40 1.12 SLE + GO
TOTAL 11.75 9.00 18
RISK?
YES
NO
What-if?
β’ After a βwhat-if analysisβ
Original vs. Copy Cataloguing
β’ Simulate the effect of delegating labelling activities to SLE
β Cost reduction of 15% for original cataloguing
β Cost reduction of 23% for copy cataloguing
β’ Incorporate batch cataloguing practices and mass retrieval β Searchingβ Processing (bibliographic, holding and item descriptions)β Labellingβ Shelving.
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RISK?
YES
NO
What-if?
Benefits of TDABC in Cataloguing
β’ Benefits
β Disaggregating values per activityβ’ Labelling and shelving consume unnecessary
resources
β Simulate potential scenariosβ’ Performing what-if-analysis
β Compare different scenariosβ’ Original versus copy cataloguing
β Justification of decisions and choicesβ’ Transferring responsibilities: cataloguers SLE staff β’ Batch activities
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Benefits of TDABC in Cataloguing
β’ Challenges
β Resource intensity β’ Data collection to gather the time duration β’ Documenting the activity flows
β Need of a dedicated software toolβ’ Keep the flow updatedβ’ Long-term maintenance
β Commitment of managers and staff β’ Discomfort of being observed β’ Data collection delay
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Conclusions
β’ Useful method to perform cost analysisβ Cataloguing Activities
β’ Provide valuable data for managerial decisionsβ Cataloguing costsβ Performance measurements
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Lorena Siguenza-GuzmanResearch Assistant
Centre for Industrial Management Department of Mechanical Engineering
Thanks for your attention
