What are the steps for calculating attributable cost savings?
If the UDC is not the default provider, the steps include:
- Define the retail service
- Identify service-related functions
- Identify UDC activities by function
- Map services to UDC activities
- Identify resources by activity
- Quantify resource units by activity
- Determine average resource costs
- Calculate activity cost by function
- Compile total attributable costs
If the UDC is the default provider, the steps include:
- Define the retail service and volume
- Identify service-related functions
- Identify UDC activities by function
- Map services to UDC activities
- Identify resources by activity to maintain in-house capability
- Quantify excess resources by activity
- Determine marginal resource cost
- Calculate cost savings by function
- Compile attributable cost savings