Overhead Value Analysis

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The overhead value analysis ( GWA) is an overhead cost management tool based on the overhead value analysis (OVA) method developed in the USA. The overhead cost value analysis (GWA) and similar procedures such as the administrative value analysis, the overhead cost-benefit analysis (GANA) and the overhead system engineering (GSE) are systematic methods for reducing costs in the overhead cost area. Specifically, it is about saving personnel capacities in the indirect service areas, i.e. in which overhead costs are predominantly incurred and which do not produce any end products for sale themselves. The GWA is associated with a lot of effort (project implementation and coordination) and is therefore not suitable as an instrument for short-term planning and control. In the overhead cost analysis, the costs and benefits of the services in selected overhead cost areas are examined in order to find ways to reduce unnecessary services and to provide more efficient services. The main participants in the process are a steering committee made up of members of the management, several teams of line managers, method experts and external consultants, as well as the heads of the overhead cost centers concerned.

Preparatory phase

The preparation phase includes both the project organization and the selection of project members for the individual investigation units. The project members usually receive several days of training before the analysis phase.

Analysis phase

The analysis phase represents the actual core of the GWA. All costs incurred by an examination unit in a period are recorded. The personnel capacity of the examination unit is calculated in personnel years. It is important to choose the underlying analysis period (last quarter, last accounting period). The costs incurred are then broken down into personnel costs (wages and salaries), person-dependent material costs (travel costs) and material costs (office, stationery). A service catalog will be created on the basis of the data determined so far. It contains the description of the service of the examination unit, the frequency of the service performed, the recipients of the service, and the time required to create the service. From this data obtained, savings proposals can then be developed, which must be checked accordingly for feasibility. In doing so, the economic efficiency and timeliness, the cost effect, as well as the social consequences and the motivational effect on the employees of any rationalization measures must be taken into account.

Realization phase

In the implementation phase, the units of the primary organization are commissioned to carry out and implement the measures. The steering committee continuously monitors the implementation. During the implementation phase, there is a continuous control of measures, during which target / actual deviations in implementation are measured and controlled by plan corrections and countermeasures.