Mainframe chargeback and cost control

Mainframe chargeback and cost control

Mainframe chargeback and cost control refers to the process of assigning costs associated with mainframe computing resources to the specific business units or departments that use those resources. The goal of chargeback is to ensure that the costs of mainframe computing are allocated fairly and accurately, and that each business unit is held accountable for the resources it consumes.
There are several methods for implementing mainframe chargeback, including:

1. Capacity-based chargeback: This method assigns costs based on the amount of mainframe capacity used by a business unit. The costs are typically calculated based on the number of MIPS (millions of instructions per second) used by the business unit.
2. Usage-based chargeback: This method assigns costs based on the actual usage of mainframe resources by a business unit. The costs are typically calculated based on the number of transactions or the amount of data processed by the business unit.
3. Fixed-rate chargeback: This method assigns a fixed rate for mainframe resources, regardless of the actual usage by a business unit. This method is typically used when mainframe resources are shared among multiple business units.
   Cost control is the process of monitoring, analyzing and controlling costs associated with mainframe computing. The goal of cost control is to optimize the use of mainframe resources and to minimize costs. The cost control process includes:
4. Establishing cost centers: Identifying and defining the different cost centers associated with mainframe computing, such as hardware, software, and operational costs.
5. Collecting data: Collecting data on the use of mainframe resources, such as MIPS usage, number of transactions, and data storage.
6. Analyzing data: Analyzing the collected data to identify trends and patterns in the use of mainframe resources.
7. Implementing cost control measures: Implementing measures to control costs, such as consolidating workloads, optimizing resource usage, and reducing or eliminating unnecessary resources.
8. Continuously monitoring and reporting: Continuously monitoring and reporting on the costs associated with mainframe computing to ensure that the cost control measures are effective and that costs are kept under control.
   It’s important to note that mainframe chargeback and cost control are critical for businesses that rely on mainframe computing, as they help to ensure that the costs of mainframe computing are allocated fairly and that resources are used efficiently. Additionally, many organizations use mainframe chargeback and cost control as a way to justify the continued use of mainframe computing in an era of increasing cloud and distributed computing.

In the context of above, what SMF Type records of mainframes should we study?

In the context of mainframe chargeback and cost control, it’s important to study SMF (System Management Facility) Type records. SMF is a subsystem of the IBM z/OS operating system that collects and stores data about the system’s activities, including resource usage and performance. The data collected by SMF is stored in SMF records, which can be analyzed to understand how mainframe resources are being used and to identify trends and patterns in resource usage.
Here are a few SMF Type records that are particularly useful for mainframe chargeback and cost control:

1. SMF Type 30: This record contains information about the usage of various system resources, such as CPU time, I/O operations, and storage usage. This information is useful for calculating capacity-based chargeback rates.
2. SMF Type 42: This record contains information about the usage of DB2 resources, such as the number of SQL statements executed and the amount of data retrieved. This information is useful for calculating usage-based chargeback rates for DB2-related activities.
3. SMF Type 74: This record contains information about the usage of CICS resources, such as the number of transactions processed and the amount of storage used. This information is useful for calculating usage-based chargeback rates for CICS-related activities.
4. SMF Type 110: This record contains information about the usage of IMS resources, such as the number of transactions processed and the amount of storage used. This information is useful for calculating usage-based chargeback rates for IMS-related activities.
5. SMF Type 89: This record contains information about the usage of z/OSMF resources, such as the number of z/OSMF services used and the amount of storage used. This information is useful for calculating usage-based chargeback rates for z/OSMF-related activities.
6. SMF Type 94: This record contains information about the usage of z/OS UNIX System Services resources, such as the number of file system operations and the amount of storage used. This information is useful for calculating usage-based chargeback rates for z/OS UNIX System Services-related activities.
7. SMF Type 100: This record contains information about the usage of IBM WebSphere Application Server resources, such as the number of requests processed and the amount of storage used. This information is useful for calculating usage-based chargeback rates for IBM WebSphere Application Server-related activities.
   It’s important to note that the specific SMF Type records that are most useful for mainframe chargeback and cost control will vary depending on the specific mainframe environment and the resources that are being charged back.

If we plan to make a excel based mainframe charge-back model, how can we do that? Could you give a skeleton?
Here is a skeleton for creating an Excel-based mainframe chargeback model:

1. Gather data: Collect SMF Type records and other relevant data on mainframe resource usage, such as CPU time, I/O operations, storage usage, and the number of transactions processed.
2. Import data into Excel: Use Excel’s built-in data import functionality to import the collected data into an Excel spreadsheet. This will make it easier to analyze and manipulate the data.
3. Create a data model: Use Excel’s built-in data modeling tools to create a data model that organizes the data in a way that is useful for chargeback calculations. This may include creating pivot tables, charts, and other visualizations to help understand the data.
4. Calculate chargeback rates: Use Excel’s built-in formula and functions to calculate chargeback rates for various mainframe resources. This may include calculating capacity-based chargeback rates, usage-based chargeback rates, or fixed-rate chargeback rates.
5. Assign costs: Assign the calculated chargeback rates to specific business units or departments. This can be done by creating a separate sheet in Excel for each business unit or department, and then using formulas or VLOOKUP functions to assign the chargeback rates to the appropriate business units or departments.
6. Create reports: Use Excel’s built-in reporting tools to create reports that show the chargeback costs for each business unit or department. This may include creating pivot tables, charts, and other visualizations to help understand the data.
7. Continuously monitor and update: Continuously monitor the mainframe resource usage and update the chargeback model as necessary. This may include updating the data model, recalculating chargeback rates, and reassigning costs.

It’s important to note that the specific steps and tools used to create an Excel-based mainframe chargeback model will vary depending on the specific mainframe environment and the resources that are being charged back. Additionally, the model should be flexible enough to adapt with the changes in resource usage and cost over the time. It’s also important to ensure that the data is accurate and complete, and that the chargeback calculations are fair and reasonable.

any other factor to consider for above excel base mainframe chargeback model?

When creating an Excel-based mainframe chargeback model, there are several other factors to consider in addition to the SMF Type records that are used to gather data. Some additional factors to consider include:

1. Chargeback rate calculations: You’ll need to determine how to calculate chargeback rates for the various resources that you’re tracking. This may include capacity-based rates, usage-based rates, or a combination of both.
2. Data collection and processing: You’ll need to develop a process for collecting and processing the SMF Type record data that you’re using for chargeback calculations. This may involve using automated data collection tools, or manually processing the SMF Type records.
3. Data validation: You’ll need to validate the SMF Type record data that you’re using to ensure that it’s accurate and complete. This may include checking for missing data, or comparing the data to other sources to ensure that it’s consistent.
4. Data security: You’ll need to ensure that the SMF Type record data that you’re using is secure and that it’s only accessible to authorized individuals. This may involve implementing access controls or encrypting the data.
5. Reporting: You’ll need to develop a process for generating chargeback reports that provide detailed information about the resources that are being charged back. This may include creating pivot tables, charts, or other visualizations to make it easy to understand the data.
6. Cost allocation: You’ll need to decide how to allocate the costs of the mainframe resources among the different departments or business units that are using them. This may involve using a cost allocation model that allocates costs based on usage or capacity.
7. Cost recovery : You’ll need to decide how to recover the costs of the mainframe resources among the different departments or business units that are using them. This may involve implementing a billing system or send invoices to the concerned department or business unit.
8. Auditing : You’ll need to perform regular audits of the chargeback model to ensure that it’s accurate and that it’s being used correctly. This may involve reviewing the data that’s being used, the calculations that are being performed, and the reports that are being generated.
   It is important to note that the factors that are most important for an Excel-based mainframe chargeback model will depend on the specific mainframe environment and the resources that are being charged back.

It is important to note that the factors that are most important for an Excel-based mainframe chargeback model will depend on the specific mainframe environment and the resources that are being charged back.