Improving Library Management by Using Cost Analysis Tools: A Case Study for Cataloguing Processes 26 June 2013 Siguenza-Guzman Lorena, Van den Abbeele

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 cuts…. Seattle People’s 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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• Time-Driven Activity-Based Costing

Kaplan, R. S. and Anderson, S. R. (2004). “Time-Driven Activity-Based Costing”. 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

• Step 2

•

Step 3

•

Step 4

•

Step 5

•

Step 6

•

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), 172–191

𝐶𝑜𝑠𝑡𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑡𝑖𝑚𝑒=¿ 𝑡𝑜𝑡𝑎𝑙𝑐𝑜𝑠𝑡𝑜𝑓 h𝑡 𝑒𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒𝑝𝑟𝑎𝑐𝑡𝑖𝑐𝑎𝑙 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦

𝐼𝑑𝑒𝑛𝑡𝑖𝑓𝑖𝑐𝑎𝑡𝑖𝑜𝑛𝑜𝑓 𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒𝑔𝑟𝑜𝑢𝑝𝑠

𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑖𝑜𝑛𝑜𝑓 h𝑡 𝑒𝑡𝑜𝑡𝑎𝑙𝑐𝑜𝑠𝑡 𝑜𝑓 h𝑒𝑎𝑐 𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒𝑔𝑟𝑜𝑢𝑝

𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑖𝑜𝑛𝑜𝑓 𝑝𝑟𝑎𝑐𝑡𝑖𝑐𝑎𝑙𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦

𝐷𝑒𝑡𝑒𝑟𝑚𝑖𝑛𝑖𝑛𝑔 h𝑡 𝑒𝑡𝑖𝑚𝑒𝑑𝑢𝑟𝑎𝑡𝑖𝑜𝑛𝑝𝑒𝑟 𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑦

𝐶𝑜𝑠𝑡𝑜𝑓 𝑎𝑛 𝑖𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑦=¿𝑑𝑢𝑟𝑎𝑡𝑖𝑜𝑛𝑡𝑖𝑚𝑒∗𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒𝑐𝑜𝑠𝑡

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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

• Step 1: Identification of resource groups

Original Cataloguing

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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

• Step 1: Identification of resource groups

Copy Cataloguing

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TOTAL COST PER RESOURCE GROUP

Resource Groups Costs (€)Cataloguers € 59,000Library Management System € 17,000Machine maintenance € 5,000RFID maintenance € 13,000General Overhead € 9,500

• Step 2: Estimation of the total cost

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• Step 3: Estimation of practical capacity

Assuming–

• breaks, arrival and departure, training, meetings, and chitchats;

– • maintenance, repair, and scheduling fluctuations

• Step 4: Calculation of the unit cost of each resource group

80% 𝑜𝑓 h𝑡 𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑓𝑜𝑟 𝑝𝑒𝑜𝑝𝑙𝑒

85% 𝑜𝑓 h𝑡 𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑓𝑜𝑟 h𝑚𝑎𝑐 𝑖𝑛𝑒𝑠

𝐶𝑜𝑠𝑡𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑡𝑖𝑚𝑒=𝑡𝑜𝑡𝑎𝑙𝑐𝑜𝑠𝑡 𝑜𝑓 h𝑡 𝑒𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒

𝑝𝑟𝑎𝑐𝑡𝑖𝑐𝑎𝑙 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦

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• Step 4: Calculation of the unit cost of each resource group


TOTAL COST PER MINUTE FOR THE DIFFERENT RESOURCE GROUPS

Resource Groups Cost (€/min)Cataloguers 0.62Library Management System 0.18Machine maintenance 0.05RFID maintenance 0.14General Overhead 0.10

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• Step 5: Determining the time duration for each activity

– Direct observation

–

–

–

(β0+β1 X1+β2 X 2+ β3 X3+β4 X4+ β5 X 5+…+ βi X i)𝑇𝑖𝑚𝑒𝑟𝑒𝑞𝑢𝑖𝑟𝑒𝑑𝑡𝑜𝑝𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑦=¿

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( h𝑆𝑒𝑎𝑟𝑐 𝑖𝑛𝑔+𝑁𝑒𝑤𝐵𝑖𝑏𝐷𝑒𝑠𝑐+𝑁𝑒𝑤𝐻𝑜𝑙 𝑑𝐷𝑒𝑠𝑐

+𝑁𝑒𝑤 𝐼𝑡𝑒𝑚𝐷𝑒𝑠𝑐+𝑃𝑟𝑖𝑛𝑡𝑖𝑛𝑔𝐿𝑎𝑏𝑒𝑙+𝑆𝑡𝑖𝑐𝑘𝑖𝑛𝑔𝐿𝑎𝑏𝑒𝑙+𝐵𝑟𝑖𝑛𝑔𝑖𝑛𝑔𝑖𝑡𝑒𝑚+𝑇𝑎𝑔𝑔𝑖𝑛𝑔+ h𝑆 𝑒𝑙𝑣𝑖𝑛𝑔)

𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝐶𝑎𝑡𝑎𝑙𝑜𝑔𝑢𝑖𝑛𝑔=¿

(57 𝑠+306𝑠+31𝑠+14 𝑠+30𝑠+29𝑠+30 𝑠+40 𝑠+168 𝑠)𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝐶𝑎𝑡𝑎𝑙𝑜𝑔𝑢𝑖𝑛𝑔=¿


• Step 6: Multiplying the unit cost of each resource group by the time duration per activity

𝐶𝑜𝑠𝑡𝑜𝑓 𝑎𝑛 𝑖𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑦=¿𝑡𝑖𝑚𝑒𝑟𝑒𝑞𝑢𝑖𝑟𝑒𝑑𝑡𝑜𝑝𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑦 ∗𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒𝑐𝑜𝑠𝑡

𝑇𝑜𝑡𝑎𝑙𝐶𝑜𝑠𝑡𝑜𝑓 𝑎𝑃𝑟𝑜𝑐𝑒𝑠𝑠=¿∑ 𝑐𝑜𝑠𝑡𝑠𝑜𝑓 𝑖𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑖𝑒𝑠

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ORIGINAL CATALOGUING

ActivityAverage

Time (min)

Cost per min

(€/min)Cost (€) 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


COPY CATALOGUING

ActivityAverage

Time (min)

Cost per min



Mod. bibliog. description 1.24 0.95 1.18 Cataloguer + LMS + Machines + GO








TOTAL 7.89 6.9214

Original Copy Original CopyTime Cost

0

2

4

6

8

10

12

White FillShelvingLabellingProcessing

Original vs. Copy Cataloguing

33%35%

15

0

1

2

3

4

5

6

0%

20%

40%

60%

80%

100%

TimePer-centage


0

1

2

3

4

5

6

0%

20%

40%

60%

80%

100%Original Cataloguing Copy Cataloguing



ActivityAverage

Time (min)

Cost per min











TOTAL 11.75 10.59 17

RISK?

YES

NO

What-if?

• Simulate the effect of delegating labelling activities to SLE



ActivityAverage

Time (min)

Cost per min






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?

• After a “what-if analysis”


• Simulate the effect of delegating labelling activities to SLE

– Cost reduction of 15% for original cataloguing

– Cost reduction of 23% for copy cataloguing

• Incorporate batch cataloguing practices and mass retrieval – Searching– Processing (bibliographic, holding and item descriptions)– Labelling– Shelving.

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RISK?

YES

NO

What-if?

Benefits of TDABC in Cataloguing

• Benefits

– Disaggregating values per activity• Labelling and shelving consume unnecessary

resources

– Simulate potential scenarios• Performing what-if-analysis

– Compare different scenarios• Original versus copy cataloguing

– Justification of decisions and choices• Transferring responsibilities: cataloguers SLE staff • Batch activities

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Benefits of TDABC in Cataloguing

• Challenges

– Resource intensity • Data collection to gather the time duration • Documenting the activity flows

– Need of a dedicated software tool• Keep the flow updated• Long-term maintenance

– Commitment of managers and staff • Discomfort of being observed • Data collection delay

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Conclusions

• Useful method to perform cost analysis– Cataloguing Activities

• Provide valuable data for managerial decisions– Cataloguing costs– Performance measurements

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Lorena Siguenza-GuzmanResearch Assistant

Centre for Industrial Management Department of Mechanical Engineering

KU [email protected]

Thanks for your attention

Documents

Improving Library Management by Using Cost Analysis Tools: A Case Study for Cataloguing Processes 26 June 2013 Siguenza-Guzman Lorena, Van den Abbeele