17,160 workers and drivers picked, packed and delivered 56,500 shipments today. Which orders did you lose money on? In this hypothetical example, the $2.5 billion shipping arm of a large manufacturer wants to know why its profit margin has been decreasing. It has decided to install activity-based costing software to find what it takes to move shipments across 33 major distribution centers. The project team first assesses the activities that make up the processing and fulfillment of an order; here, the process takes six months. Much of the data for the analysis comes from existing financial, human resources and other databases. But more detail is necessary about what actually takes place while packing and unpacking trucks. New bar-coding terminals at each loading bay collect this additional information. After the investigation stage, the team builds templates within the software and tests them at five pilot locations. After another six months, the company is ready to set up the remaining 28 locations at a rate of one to two per month.

To see the details behind this Planner and fill in your own estimates, click on the "Get the Tool" icon above and download the interactive worksheet.