Monday, August 31, 2009
Sunday, August 30, 2009
Saturday, August 29, 2009
Friday, August 28, 2009
Tuesday, August 25, 2009
Sunday, August 23, 2009
Management Accounting - Responsibility Accounting
Management Accounting - Responsibility Accounting: "Planning & control are essential for achieving good results in any business. Firstly, a budget is prepared and, secondly, actual results are compared with budgeted ones. Any difference is made responsibility of the key individuals who were involved in (i) setting standards, (ii) given necessary resources and (iii) powers to use them.
In order to streamline the process, the entire organization is broken into various types of centers mainly cost centre, revenue centre, profit center and investment centre. The organizational budget is divided on these lines and passed on to the concerned managers. Actual results are collected and displayed in the same form for comparison. Difference, if any, are highlighted and brought to the notice of the management. This process is called Responsibility Accounting."
In order to streamline the process, the entire organization is broken into various types of centers mainly cost centre, revenue centre, profit center and investment centre. The organizational budget is divided on these lines and passed on to the concerned managers. Actual results are collected and displayed in the same form for comparison. Difference, if any, are highlighted and brought to the notice of the management. This process is called Responsibility Accounting."
Thursday, August 20, 2009
MANAGEMENT ACCOUNTINGS - VARIANCE ANALYSIS I
MANAGEMENT ACCOUNTINGS - VARIANCE ANALYSIS I: "This is second part of Management Accounting - Variance Analysis. In the previous chapter, theoretical background was discussed and a case-study was introduced.
In this hub, calculation of various variances would be shown. Also some relevant topics would be covered like favorable and adverse variances, random and systematic variances and how to decided which variance is a serious one and what safeguards should be taken."
In this hub, calculation of various variances would be shown. Also some relevant topics would be covered like favorable and adverse variances, random and systematic variances and how to decided which variance is a serious one and what safeguards should be taken."
Wednesday, August 19, 2009
MANAGEMENT ACCOUNTING - VARIANCE ANALYSIS
MANAGEMENT ACCOUNTING - VARIANCE ANALYSIS
Variance means difference while analysis means breakdown. In Cost or Management Accounting, variance would relate to difference between Standard and Actual Costs. Analysis would break this difference into various parts like quantity, price and capacity. Any wide variation would be thoroughly investigated and persons responsible (purchase manager, human resource manager, factory manager or marketing manager) would be asked to explain.
Variance means difference while analysis means breakdown. In Cost or Management Accounting, variance would relate to difference between Standard and Actual Costs. Analysis would break this difference into various parts like quantity, price and capacity. Any wide variation would be thoroughly investigated and persons responsible (purchase manager, human resource manager, factory manager or marketing manager) would be asked to explain.
Monday, August 10, 2009
Project Management - Evaluation
Project Management - Evaluation: "Evaluation and appraisal are sometimes used interchangeably. This is for two reasons: (i) both mean assessment, and (ii) at-times they over-lap especially when we talk of ex-ante evaluation.
In fact, both are materially different as shown below:
Appraisal is the process of examining a proposal like setting-up of a fertilizer plant. It involves weighing up the costs and benefits, risks and uncertainties of putting up the plant before a decision is made."
In fact, both are materially different as shown below:
Appraisal is the process of examining a proposal like setting-up of a fertilizer plant. It involves weighing up the costs and benefits, risks and uncertainties of putting up the plant before a decision is made."
UNDERSTANDING CONTROL
UNDERSTANDING CONTROL: "In simple words “Control” means keeping actual position within expected limits. When one talks of Cost Control, one does not mean “Cost Savings” but ensuring that Actual Costs remain within Estimated Costs. Savings, if any, are incidental and not Raison D’�tre of installing a cost or budgetary control system."
SMELL A RAT
SMELL A RAT: "A glance at a report may give you the feelings that there is something wrong. In my long career as a Head of Project Supervision, I pointed out in-efficiency or dishonesty in many cases. After retirement, I started teaching Project Management at University Level and experienced gained in the past helped me better explain the concepts.
Case Study Method is a good way of teaching. Recently, I gave a case where a project failed to meet time and budget estimates. Consequently, the Project Manager was fired. The case was circulated to the students with following ending:"
Case Study Method is a good way of teaching. Recently, I gave a case where a project failed to meet time and budget estimates. Consequently, the Project Manager was fired. The case was circulated to the students with following ending:"
Project Management - Contracts & Outsourcing
Project Management - Contracts & Outsourcing: "A project manager has to see a lot of activities in the nature of administrative, technical, socio-economic and environmental. If the manager is an engineer, supervision of technical jobs would be some-what easy. But other areas would receive less attention.
It is, therefore, imperative that the manager, in consultation with the board of directors, passes on some activities to contractors. This is known as out-sourcing which involves sub-contracting to a third party some of the activities like machine fabrication and installation, product design, manufacture and even marketing. Many multinational companies have outsourced routine jobs such as pay role, tax accounting, recruitment call center services and e-mails."
It is, therefore, imperative that the manager, in consultation with the board of directors, passes on some activities to contractors. This is known as out-sourcing which involves sub-contracting to a third party some of the activities like machine fabrication and installation, product design, manufacture and even marketing. Many multinational companies have outsourced routine jobs such as pay role, tax accounting, recruitment call center services and e-mails."
Project Management - Managing Project Teams
Project Management - Managing Project Teams: "The difference in productivity between an average team and a turned-on, high performing team is not 10%, 20% or 30% but 100%, 200%, even 500%! –Tom Peters.
In project implementation, a variety of skills are required. So first and foremost job of any project manager is to select a team of administrative and technical personnel."
In project implementation, a variety of skills are required. So first and foremost job of any project manager is to select a team of administrative and technical personnel."
PROJECT MANAGEMENT - Leadership
PROJECT MANAGEMENT - Leadership: "The title is leadership and not manager-ship. When we deal with Project Management, it is mostly managing and not leading. If so, why leadership is being introduced here. Let us first of all state dictionary meanings of a manager and a leader:
Manager: 'A person controlling or administering a business.'
Leader: 'A person who causes others to go with him, by guiding and showing the way; guides by persuasion and argument.'"
Manager: 'A person controlling or administering a business.'
Leader: 'A person who causes others to go with him, by guiding and showing the way; guides by persuasion and argument.'"
REDUCING PROJECT DURATION
REDUCING PROJECT DURATION: "No project is implemented in isolation. Events happening around the project may affect its progress. A nation-wide strike, an un-expected calamity or an abrupt economic change may bring the project to a grinding halt. Even if everything goes well, the sponsors may be tempted to enter the market early. In all cases, the project manager plays a vital role in shortening the project schedule. To start with, a manager should study fast-tracking or shift to an advanced technology. If nothing helps, more resources can be introduced for an early completion. Since it would invariably result in more costs, a manager must find out if, within the same time-frame, the costs could be brought lower than the crash-cost limit. This has been explained by Crashing Techniques through an example of a Yacht Project."
RESOURCE MANAGEMENT - LOADING & LEVELING
RESOURCE MANAGEMENT - LOADING & LEVELING: "In a previous hub, we calculated slacks or floats. If an activity has a slack, its start can be delayed. For managing a project, there are various activities which have to be performed in some order. This was explained in Net-Working Techniques. There were some activities which were considered critical and hence cannot be postponed or delayed. While some other, non-critical activities, can be slipped or postponed within a slack-time. So far we have been discussing planning. The next phase would be implementing which is covered by Resource-Management. This is subject matter of this paper."
Project Management - Managing Risk
Project Management - Managing Risk: "What is a Risk?
Risk means uncertainty or chances of bad consequences. In other words, risk is possibility of loss, injury or destruction. It is always in negative sense. Its opposite is certainty, surety and safety.
In all businesses, risk is inevitable. In project management, there is a risk even before implementation, more risk while project is being implemented and still more when the project goes on steam such as no demand for the products or bad debts or bad-employees passing information to the competitors."
Risk means uncertainty or chances of bad consequences. In other words, risk is possibility of loss, injury or destruction. It is always in negative sense. Its opposite is certainty, surety and safety.
In all businesses, risk is inevitable. In project management, there is a risk even before implementation, more risk while project is being implemented and still more when the project goes on steam such as no demand for the products or bad debts or bad-employees passing information to the competitors."
Case Study: Using CPM or PERT in time planning & control
Case Study: Using CPM or PERT in time planning & control: "For over three decades, I worked for a development bank. My main job was to evaluate proposals for setting up of industrial projects initially as an Officer and later as Head of the Division. I have many interesting stories to share in project planning and implementation. One such story is the success of Pakistan Mineral Water Corporation (PMWC) in water-bottling. The company no more exists. It has since been swallowed up by multinational brands of bottled-water like AVA, Aquafina & Culligan."
Project Management - Cost Estimation
Project Management - Cost Estimation: "Teach two words to a parrot, Demand and Supply, and get a brand new half-economist. Another two words ‘Planning and Control’ would raise the parrot to the level of a half-administrator.
Planning and control are two ingredients of success. Running a business without planning and control is like groping in the dark. An important tool in planning is a budget. It is a quantitative expression of a plan in monetary terms. It is an itemized summery of probable expenses and income for a given period."
Planning and control are two ingredients of success. Running a business without planning and control is like groping in the dark. An important tool in planning is a budget. It is a quantitative expression of a plan in monetary terms. It is an itemized summery of probable expenses and income for a given period."
BUSINESS FORMS & ORGANIZATIONAL STRUCTURES FOR PROJECTS II
BUSINESS FORMS & ORGANIZATIONAL STRUCTURES FOR PROJECTS II: "After incorporating a company, the next question is what structure? The word structure is a common word. All it means is: framework, collection, arrangement or configuration.
Here it would be used in the context of hierarchy in an organization, a cascade of one to many relationships. It shows how tasks are formally divided, grouped and coordinated. It is an organization chart that shows who reports to whom. At its heart are two things: roles and accountability.
Basically, there are two structures: Process and Product. A combination of both is called Matrix. The latest development is network which is a sort of a joint-venture but linked with internet which itself is a network of networks."
Here it would be used in the context of hierarchy in an organization, a cascade of one to many relationships. It shows how tasks are formally divided, grouped and coordinated. It is an organization chart that shows who reports to whom. At its heart are two things: roles and accountability.
Basically, there are two structures: Process and Product. A combination of both is called Matrix. The latest development is network which is a sort of a joint-venture but linked with internet which itself is a network of networks."
BUSINESS FORM & ORGANIZATIONAL STRUCTURE SUITED FOR PROJECTS
BUSINESS FORM & ORGANIZATIONAL STRUCTURE SUITED FOR PROJECTS
Projects are identified, appraised and implemented. They may be successful, challenged or outright failure. The experience gained in the process is used in the next round for better identification, appraisal and implementation. When a project enters an implementation stage, the first question would be: what form and what structure. While form refers to nature of business, partnership or corporation, the structure refers to organizational setup like process or product. Sometimes, a new problem is confronted whether to implement the project as a part of the existing setup or as a separate legal entity.
Projects are identified, appraised and implemented. They may be successful, challenged or outright failure. The experience gained in the process is used in the next round for better identification, appraisal and implementation. When a project enters an implementation stage, the first question would be: what form and what structure. While form refers to nature of business, partnership or corporation, the structure refers to organizational setup like process or product. Sometimes, a new problem is confronted whether to implement the project as a part of the existing setup or as a separate legal entity.
PROJECT MANAGEMENT MADE EASY
PROJECT MANAGEMENT MADE EASY
Have you ever projected yourself ten years into the future and visualized what life style you are going to have. You may make a wish list right now jotting down such items as a super car preferably Lamborghinis, a private jet Falcon 2000 type, and a villa with river valley view. Or you may be realistic and wish for a decent flat, a family car and enough liquidity to have an extended holiday once for a while. If you plan well, execute it meticulously, you would certainly reach your goal. Perseverance or, simply put, firmness of the purpose would make your dreams come true.
Have you ever projected yourself ten years into the future and visualized what life style you are going to have. You may make a wish list right now jotting down such items as a super car preferably Lamborghinis, a private jet Falcon 2000 type, and a villa with river valley view. Or you may be realistic and wish for a decent flat, a family car and enough liquidity to have an extended holiday once for a while. If you plan well, execute it meticulously, you would certainly reach your goal. Perseverance or, simply put, firmness of the purpose would make your dreams come true.
Travel with Hafeez - Vietnam
Travel with Hafeez - Vietnam
This travel tale is in three part. Firest relates to Ho Chi Minh City, Second Nha Trang and Dalat and Third to Hanoi and around.
This travel tale is in three part. Firest relates to Ho Chi Minh City, Second Nha Trang and Dalat and Third to Hanoi and around.
Travel with Hafeez to Myanmar.
Travel with Hafeez to Myanmar.
My travel tale relating to Myanmar is based on two parts. In first part, I described my visit to Yangoon and travel to Mandalay. Next covers the rest of the country.
My travel tale relating to Myanmar is based on two parts. In first part, I described my visit to Yangoon and travel to Mandalay. Next covers the rest of the country.
Project Management - Evaluation
Project Management - Evaluation
This hub is about last stage of a project implementation. Here actual performance of a particular project is compared with the estimates to find out how close or far the both are. In other words, it the same as 'deviation'. While a small deviation is acceptable, a large one is investigated and necessary adjustment is made for the next round.
This hub is about last stage of a project implementation. Here actual performance of a particular project is compared with the estimates to find out how close or far the both are. In other words, it the same as 'deviation'. While a small deviation is acceptable, a large one is investigated and necessary adjustment is made for the next round.
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