The two key metrics for measuring the cost of a process are:
Volume drivers processed per FTE per annum
The more a person can process the better. If you can increase this measure your cost performance must be improving.
Process cost per volume driver
The lower the cost per item a person processes the better. If you can reduce this measure your cost performance must be improving.
The Volume Driver is the main item that flows through the process. For example:
Accounts Payable = Vendor invoices
Accounts Receivable = Customer Receipts
Credit Management = Customer Accounts
Purchasing = Purchase Orders
Payroll = Employee Pays
Call Centre = Phone Calls
Inwards Goods = Goods Receipts
Volume drivers processed per FTE per annum
The more a person can process the better. If you can increase this measure your cost performance must be improving.
Process cost per volume driver
The lower the cost per item a person processes the better. If you can reduce this measure your cost performance must be improving.
The Volume Driver is the main item that flows through the process. For example:
Accounts Payable = Vendor invoices
Accounts Receivable = Customer Receipts
Credit Management = Customer Accounts
Purchasing = Purchase Orders
Payroll = Employee Pays
Call Centre = Phone Calls
Inwards Goods = Goods Receipts
The above is not an exhaustive list, they are just examples
