Bureau of Indian Affairs ABC and Management Decision-Making May 24, 2006

Bureau of Indian Affairs

ABC and Management Decision-Making

May 24, 2006

Agenda

Activity Based Costing in the BIA

Real Estate ABC Data Collection, Validation and Reporting and Use of the Data

How BIA uses their ABC and Performance Data

Example: Real Estate Central Office/HQ Data for December 2005 - Probates

Example: Real Estate Region Data for December 2005

3

Activity Based Costing (ABC) in the BIA

• Third Year of Program

• Current Use of Surveys to collect:

– Time Worked on Activities

– Outputs per Activity

• As of October 1, 2006 – Use Quicktime to Report Time and Labor cost by activity

– Over 600 activities reported under 17 Lines of Business and 36 Business Functions

– Non-Labor costs captured through analysis of FFS data

• Data Collected Monthly for Realty – First program to use formal reporting mechanism for decision-making

4

Real Estate Can Provide Accurate ABC/Performance Data

• Data Collection

– Employees have the ability to track their time daily in a "cuff sheet"

– Real Estate collects employee data monthly

– Collect "workload data" monthly

– Data only has one month lag for workload and time on task

• Data Validation

– Validation checks occur throughout the process to ensure accuracy of data

Daily "cuff sheet" alerts employees to key problems with data entered

Perseus Survey prevents monthly transmission of data until it is entered correctly

After data is collected, Central Office Program Manager produces validation reports for each office allowing managers to correct errors or attest to accuracy of data

• Reporting

– Can generate over 60 types of reports by various organization levels each month

– Data can be produced in a table format or PowerPoint Slides

– Aligned to the DOI mission areas and goals

5

How Real Estate is Using the ABC/Performance Data

• Produce accurate and valid cost data on a monthly basis

• Support management decision making to determine:– Resource requirements– Cost and FTE to fully support "real estate" workload requirements– Forecast budget and FTE in the out years

• Produce approximately 60 types of reports to include data on: • Workload Profiles

• Total Cost

• FTE Consumed

• Unit Cost

• FTE per Unit

• Assist Central Office and Regional Leadership in determining best and worst organizational performers by region and agency

• Support data requests for the DOI and BIA HQ, budget requests, PAR, PART, GPRA, etc (eliminates multiple data requests to field)

6

How BIA will Use their ABC and Performance Data

• Data Collection and Data Validation

– BIA will begin collecting ABC employee time data on a bi-monthly cycle until QuickTime implementation in Oct 1, 2006

– Workload data is being collected on a monthly basis

– BIA is currently developing a validation process for workload and performance measurement information

• Reporting

– BIA is developing a reporting template to review results for FY06

– BIA is developing a schedule for Senior Executive progress meetings. Meeting will be either bi-monthly or quarterly

– Results will include cost, FTE, and unit cost (where applicable) of Mission Areas, End Outcome Goals, outputs, and activities

Agenda



Example: Real Estate Central Office/HQ Data for December 2005 – Probates


8

Cost Performance Management (CPM) Tool – Main Menu

9

CPM – BIA Summary Report Menu

10

Hours Per Unit by Region - December 2005

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

Hours Per Unit 8.7 120.6 17.0 33.9 63.4 13.1 28.4 55.4 89.7 39.4 155.9 46.7

Alaska EasternEastern

OklahomaGreat Plains Midwest Navajo Northwest Pacific

Rocky Mountain

Southern Plains

Southwest Western

BIA Wide Average (65.1)

Poor: +20% above averageAverage: +/ - 20% of averageStrong: -20% below average

Probates

Example Real Estate Data for December 2005 - Probates

11

Direct Labor Unit Cost by Region - December 2005

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

Unit Cost $248 $3,130 $379 $760 $1,599 $364 $719 $1,360 $2,146 $1,134 $3,944 $1,374



Rocky Mountain

Southern Plains

Southwest Western

BIA Wide Avg ($1,654)


Probates


12


Workload Profiles by Region - December 2005

0

500

1,000

1,500

2,000

2,500

3,000

Volume of Cases

New Workload 67 7 52 140 63 253 26 46 25 44 3 62

Comps. 6 4 64 195 59 14 119 42 35 54 3 77

Pending @ End of Mo. 1,138 279 501 2,763 1,866 239 586 1,074 1,295 400 146 1,037

Units of Work Performed 37 6 39 168 61 120 73 44 30 27 3 63



Rocky Mountain

Southern Plains

Southwest Western

Probates

13

Change in Pending Workload by Region - December 2005

0

500

1,000

1,500

2,000

2,500

3,000

Volume of Pending Cases

Pending - Begin of Month 1,199 282 489 2,708 1,870 0 493 1,078 1,285 390 146 1,022

Pending - End of Month 1,138 279 501 2,763 1,866 239 586 1,074 1,295 400 146 1,037



Rocky Mountain

Southern Plains

Southwest Western

Probates


14

Total Hours by Region - December 2005

0

1,000

2,000

3,000

4,000

5,000

6,000

Total Hours 316 664 664 5,690 3,872 1,570 2,057 2,440 2,689 1,066 467 2,918



Rocky Mountain

Southern Plains Southwest Western

Probates


15


Total Direct Labor Cost by Region - December 2005

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Total Cost $9,038 $17,215 $14,768 $127,226 $97,526 $43,498 $52,114 $59,830 $64,384 $30,628 $11,831 $85,886



Rocky Mountain


Probates

16

Direct Labor Cost Per Hour by Region - December 2005

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

Cost Per Hour $28.46 $25.96 $22.21 $22.39 $25.22 $27.70 $25.30 $24.54 $23.93 $28.77 $25.29 $29.42



Rocky Mountain


BIA Wide Avg ($25.30)

Probates



Agenda



Example: Real Estate Central Office/HQ Data for December 2005 – Probates


18

Total Labor Costs by Output Group - December 2005

Other Program Work0%

Case Reviews22%

Real Estate - Encumbrances

6%

Probates19%

Real Estate - Conveyances12%

Real Estate - Secondary Transactions

2%

LTRO23%

Mission Sustaining26%

ALASKA REGION

Total Reported Labor Costs for December 2005 = $119,616

Example Real Estate Data for December 2005 – Region Cost by Output Group

19

Total Hours Consumed by Output Group - December 2005

Real Estate - Conveyances11%

Mission Sustaining25%

Real Estate - Encumbrances

6%

Real Estate - Secondary Transactions

2%

Probates22%

Other Program Work0%

Case Reviews19% LTRO

15%

ALASKA REGION

Total Reported Hours Consumed During December 2005 = 3,925

Example Real Estate Data for December 2005 – Region Hours by Output Group

20

Example Real Estate Data for December 2005 – Agency Workload Detail for an Output Group Level

ALASKA REGION

Workload Profiles

0

1

2

3

4

5

6

7

Volume of Cases

Pending @ Begin of Mo. 6 0 2 4 0 0

New Workload 0 0 0 0 0 0

Completions 0 0 0 0 0 0

Pending @ End of Mo. 6 0 2 4 0 0

Units of Work Perf. 0 0 0 0 0 0

Region WideAlaska Regional

OfficeFairbanks Agency

West Central Field Office

Alaska Title Services Center

NW LTRO serving Alaska

Real Estate: Encumbrances

Note: Workload includes pending workload, new workload and completions

21

Example Real Estate Data for December 2005 – Agency Hours & Cost Detail for an Output Group Level

ALASKA REGION

Total Hours and Total Direct Labor Cost

0

5,000

10,000

15,000

20,000

25,000

Total Hours 848 495 131 222 0 0

Total Cost Direct Labor ($k) $22,238 $14,215 $2,055 $5,968 $0 $0

Region WideAlaska Regional

OfficeFairbanks Agency

West Central Field Office

Alaska Title Services Center

NW LTRO serving Alaska

Probates

Documents

Bureau of Indian Affairs ABC and Management Decision-Making May 24, 2006