You are the head of the engineering department in a certain company. your department has been...

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Mechanical Engineering

You are the head of the engineering department in a certaincompany. your department has been allocated an annual budget ofR2.6 million for this year. it is now towards the endof thefinancial year and your department has overspent by 25%. yoursenior manager wants you to justify why this is so. YOur task is topresent a report showing all the expense of your department for theyear and analyse them in a form of a Pareto analysis and a drilldown analysis. in your analysis, ensure that you highlight thecause of your over expenditure, including the failure modes of theequipment. Justify ypur financial over spend with things thataffect maintenance such as economic factors (macro and micro), poorworkmanship from contractors, shift arrangements, poor qualityspares, emergency work that had to be done

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4.0 Ratings (466 Votes)

The budget being allocated R26 Million The department has overspent by 25 which is R65 million more Hence the total expenditure 2665 R325 Million The Expenditure overshot by 25 and hence the total expense went up This was caused due to Change in the government See Answer

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