Methodology and models of functional-cost evaluation of business processes

Abstract

Purpose: the purpose of the article is to develop a methodology and mathematical models for assessing business processes using the functional- cost approach, which provide the calculation of one of the indicators included in the integral criterion «Strategic importance» when making a management decision on the need to transfer a business process to outsourcing. Discussion: solving the problem of methodological support for assessing business processes in the context of their transfer to outsourcing led to the development of a new method based on the methodology of Apt and Mason and featuring a developed system of quantitative indicators detailing two integral criteria «Strategic significance» and «Comparative efficiency». The authors developed a model for representing business processes in order to implement the proposed approach, was, taking into account the strengths of modern methodologies and notations for modeling business processes and differing in the composition of their elements (process, function, subfunction, operation, chain of operations). Thus, the task of developing mathematical models that provide an assessment of business processes, taking into account the proposed structure of elements, becomes urgent. Results: the article contains the proposed indicators for assessing business processes according to the criterion «Strategic significance» is «The share of the process (function) in the total cost of work» for the calculation of which a methodology based on the functional- cost approach and characterized by its adaptation for the new structure of elements of business processes. Within the framework of the proposed methodology, mathematical models were developed that allow calculating the cost of each element of the structure in the context of key cost items (wages, insurance premiums, depreciation of fixed assets, material costs, etc.). The developed models for calculating the cost of elements of a business process are based on the concept of fair distribution of costs, and the indicator of labor intensity is used as a distribution criterion.