Analyse and interpret budget and actual financial information to monitor and

Analyse and interpret budget and actual financial

This preview shows page 31 - 33 out of 36 pages.

Analyse and interpret budget and actual financial information to monitor and review profit and productivity performance Scenario: As mentioned earlier that you have now crossed the first quarter of your operational plan, you will need to analyse and interpret the store budget after the implementation of your operational plan. The table below highlights the summary of budget that you will need to analyse. SUMMARY OF BUDGET (For Resources and Operational Plan) Resource Type Projected Budget Actual Performance Variance Capital/Finance $150,000 (Profit) $120,000 (Profit) $30,000 Human $200,000 (Expense) $200,000 (Expense) $0 Physical $250,000 (Expense) $260,000 (Expense) $10,000 Based on the summary above, you will need to analyse, interpret and write a budget report (within 300 words) for management and explain the reasons of variations and for any underperformances. BUDGET REPORT FOR MANAGEMENT 3.3: Identify areas of under-performance, recommend solutions and take prompt action to rectify the situation; Ensure mentoring and coaching are provided to support Operational Management, Assessment 1 v2 Last updated on 10/09/2019 Page 31
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T-1.8.1_v3 Scenario: After the first quarter of your operational plan implementation, you have previously identified some issues in budget and financial performance. Now you have also realised that there are several areas of concerns within operations as well. First of all, you find that performance reports database that there are several failures and some positives in meeting performance objectives by your staff members and also in overall store KPIs. These include performance failures such as: Overall checkout service speed is 75% of the assigned KPI whereas it should be over 90% Inventory, logistics and delivery operations are slower compared to the assigned KPI. Slower by 10% Errors in online delivery increased by 5%. Waste minimisation has exceeded the KPI by 10% which is good. This credit goes to everyone in the store. Human Resource recruitment was exactly within budget. Physical resource acquisition exceeded by $10,000. Your procurement department team leader has mentioned you that there were some changes in prices for some physical resources. Staff late attendance issues (increased by 10% after the plan). Stock Take sale achieved 80% of assigned KPIs and targets. Your stocktaking team needs to have meeting with you. Fifteen (15) Work Health & Safety (WHS) issues and minor incidents within the first quarter. The initial objective was to reduce to 5 incidents. Based on these performance issues mentioned, you have decided to analyse and review the existing performance against the objectives that you have set earlier. You have also decided to review provide solutions by revising the KPIs, take actions and ensure support activities to individuals and groups who have underperformed.
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