Cost-control procedures are only useful if be followed. Flexibility the costs incurred by the company with greater insight into The business and economic environment is highly potential risk areas. Despite the availability of various dynamic in nature.
Technological changes occur very fast. A control techniques and project control software many rigid control system would not be suitable for changing an construction projects still do not achieve their cost and time environment.
These changes highlight the needs for the objectives. Strategic planning must allow for adjustments for II.
Similarly, managers SYSTEM must make modifications in a controlling methods, Cost Control at every level focuses on inputs, techniques and systems as they become necessary.
An processes and outputs. It is very important to have effective effective control system is one that can be updated quickly controls at each of these three stages. Effective control as the needs aroused. The D. This will ensure that managerial attention is by it are able to understand them fully and accept them.
This A control system is difficult to understand and may cause would eliminate unnecessary and uneconomic supervision, unnecessary mistakes and irritation and may be rail against marginally beneficial reporting and a waste of managerial by workers.
Accordingly employees must agree that, such controls are necessary and appropriate and will not have any negative effects on their efforts to achieve their personal as well as organizational goals. Integration I.
Monthly cost data organizational environment and thus become effective. Cost information on cost of materials, labour rates, F. Economic feasibility indices, market indicators and other information relevant to The cost of a control system must be balanced against its construction. Research has shown that in the periods of high benefits. The system must be economically feasible and escalation, the prices can change even in a month, during reasonable to operate.
For example, a high security system to Govt. Budget proposals, policy changes of Govt. Building cost price indices system to safeguard office supplies in a store would not be In Britain comprehensive construction cost economically justified. Accordingly the benefits received information is supplied on reciprocal basis based on analysis must outweigh the cost of implementing a control systems.
In addition it also provides cost G. Strategic placement indices, cost studies, cost trends, monthly briefings. Effective controls should be placed and emphasized at However in India such information is maintained by such critical and strategic control points where failures concerned organizations.
The objective is to apply controls to the essential aspect of Labour rates are fixed by labour commissioners of a business where a deviation from the expected standards respective states. Many companies are nowadays will do the greatest harm. These control areas include maintaining cost data of completed projects in their archives production, sales, finance and customer service. Corrective action D.
Priced bill of quantities An effective control system not only checks for and They provide a wealth of information. However such identifies deviation but also is programmed to suggest data must be carefully analysed because of wide variations solutions to correct such a deviation.
For example, a during tendering of individual projects. If an II. To achieve planning efficiency the ratio of non- I. However it A good system of control should work on the exception may not be possible to maintain this ratio if the building is principle, so that only important deviations are brought to prestigious where large entrances will be essential the attention of management. In other words, management B. Plan shape does not have to bother with activities that are running The more complex the shape of a building, then more costly will be per sqm.
If a change gets approved, the cost baseline is not be possible from considerations of natural ventilation, updated to reflect the approved changes. If a request gets site contours. A balance has to be struck. Height reference. Construction cost of greater height structures will be higher than low rise structures. Tall buildings are IV. This will involve time and money. Costs in use performance and that conceived in the original project plan. Repairs will future project planning.
It may be remembered that higher cost of construction necessarily does not result in V. A literature review is an evaluative report of information found in the literature related to our selected III. A short summary of this paper. Features of Cost control Cost control process involves setting targets and standards, ascertaining the actual performance, comparing the actual performance with standard, investigating the variances and taking corrective action.
It aims at achieving the standard. It is a preventive function. In cost control, costs are optimized before they are incurred. It is generally applicable to items which have standards.
It contains guidelines and directive management such as, how to do a thing. Aspects Of Cost Control 1 Planning: Initially a plan or set of targets is established in the form of budgets and standards. Deficiencies are noted and discussion is started to overcome deficiencies. Main Areas of cost control Materials, Labor, Overheads, Sales, Energy, Advantages cost control It helps the firm to improve its profitability and competitiveness.
It helps the firm in reducing its costs and thus reduce its prices. It is indispensable for achieving greater productivity.
If the price of the product is stable and reasonable, it can maintain higher sales and thus employment of work force. Disadvantages of cost control Reduces the flexibility and process improvement in a company. Restriction on innovation. Requirement of skillful personnel to set standards. General techniques of Cost cutting Use Skype to make domestic and international phone calls. Establish presence on social media sites such as Facebook and Twitter instead of newspaper, magazine, mail.
Use electronic communication, cut down on print and paper communication. Outsource computer maintenance.
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