Performance budgets, financial management

LBVBI 5 - An aggressive buy quief program is in effect. Management provides financial incentives (e.g., budgets are increased up to 10 pacent for purchases of quieter equipment). Noise hazard abatement is an element in the performance standards of procurement personnel. 

Operations managers although mindful of financial measures, also have their own set of measures. These can be categorized as utilization measures and performance measures as shown in Table 19.2. It will be observed that the measures used by operations are not in conflict with those used by the accountants, but are more at the tactical day-to-day level. The accountants tend to look at results as a measure of what has happened and whether plans and targets (budgets) have been achieved. Operations managers are also vitally interested in results but use measurement to influence and control so as to achieve desired results. 

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