Budgets and Cost Control

In general, similarity or general cost ratios estimates are used for developing screening estimates when an estimate is required quickly and a limited accuracy is acceptable. Detailed cost ratios or detailed labor and materials estimates are generally developed prior to actual appropriation of funds to develop a better estimate for budgeting and cost control purposes. 

Preventive/predictive maintenance Continuous reliability improvement Reliability-centered maintenance Maintenance parts/materials control Maintenance storeroom operations Work order and work control Maintenance planning/scheduling Maintenance budget and cost control... 

Closure Management and Programmatic Interface—This section provides a work breakdown structure for N Reactor closure and describes the organizational responsibilities for its implementation and means of performance monitoring together with the budget and cost-control process. 

Business competencies. Commented themes included contracting, project management, commercial awareness, finance, economics, planning, marketing, budgeting and cost control. 

Administration of the plant engineering organization and personnel as well as related financial considerations (budgeting, forecasting, cost control), training, and record keeping... 

Develop and implement procedures for budget tracking and cost control... 

Static and Flexible Budgets Overhead cost can significantly affect the profitability of a projec t and is the only cost outside the control of the project manager. The project is expected to contribute a definite amount toward the expenses of the company and will be charged this amount even if the production rate is zero. This is the fixecTcomponent of the overhead cost and will include directly allocable costs such as depreciation and a proportion of general costs such as office salaries and heating. 

The construction industry has a poor reputation in terms of cost control, and tales of budget overspends are legion. 

A successful project produces an outcome that performs as expected, by deadline, and within cost limits. Thus, the three parameters by which a project is planned and controlled are established. Quality is defined by specifications, time is defined by schedule, and costs are defined by a budget. 

Regardless of whether the costs of unnecessary and unproductive validation efforts represent a significant portion of a laboratory s annual expense or a small decimal of its budget, managers have a fiduciary responsibility to control costs. If that responsibility is not exercised patients costs ultimately rise, a portion of needy patients are financially excluded from a beneficial treatment, and investors who might otherwise have funded valuable research and development efforts put their money in an Internet stock instead. Cost control isn t just good business it s good altruistic policy as well. 

To be successful, an organization must offer services and products that meet a well-defined purpose or need. A company must satisfy its users, including delivery time scales. It should be ensured that applicable standards, statuary requirements, and specifications are in compliance. The offered product or services should be within budget and provide value. Companies should ensure that their total operations are carefully reviewed before implementation to reduce the occurrence of error and quickly correct any error inadvertently made. Control should be demonstrated on changes through proactive communication and feedback loops between the company and external interfaces. Training needs must be identified to promote efficiency and cost-effectiveness. 

Risk management should be central to the planning, budgeting, and acquisition process. Failure to analyze and manage the inherent risk in all capital asset acquisitions may contribute to cost overruns, schedule shortfalls, and acquisitions that fail to perform as expected. For each major capital project, a risk analysis that includes how risks will be isolated, minimized, monitored, and controlled may help prevent these problems. 

Once the project is under construction, a project cost control system should be implemented. This system provides a status report listing construction status, current budget, committed cost, expenditures to date, cost to be committed, final cost, and variance from budget. This cost system provides management with a method to plan and track the various phases of a packaging project. 

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