RCA Open Source Application: ROSA Manual/Limitations of the Open Source Version

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Objectives of Unit 2
After completing this unit, you should be able to:

  • Identify four ROSA model limitations

There is certain cost modeling limitations inherent in the ROSA application. These limitations are specific to Version 1.0 of the ROSA application and should not be viewed as universal or when considering other customized ROSA model applications.

No ‘Actual’ Costs: ROSA currently supports only the construction of an RCA model using planned information. Thus, the processing of monthly actual information and comparing it with a plan or target amount is not supported. The planning aspect allows for the definition of consumption relationships with operational resource quantities, valuing the resource quantities with dollars, and calculating product and service costs.

Excess/idle Capacity: There is a limited ability to isolate excess/idle capacity in the application. The application currently deals only with planned information and is therefore not able to provide information on actual excess/idle capacity. The planned cost rate calculation in ROSA does not distinguish between fixed capacity provision costs and fixed capacity usage costs. Planned excess/idle capacity costs are therefore slightly over stated.

Model Size Limitation: The ROSA model was designed for optimum use for businesses with limited size RCA applications. However, the underlying database and technology used in this model is extremely scalable.

No Profitability Reporting: ROSA Version 1.0 is solely for the purposes of cost modeling. Customer or product revenue is not available in the model; therefore, reports on customer or product profitability is not provided.