Cost Control Concepts in the Trade Contractor Context - Example System Presented - Budget "Variance Analysis"

1. Cost Control & Variance Analysis Grow Profits Get the Competitive Edge Obsolete Yourself Presented by Malcolm Campbell

2. Inspirational Quote #1 Who said it? "Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan "press on" has solved and always will solve the problems of the human race.“

3. “Silent Cal” said it? -Calvin Coolige 30th President of the United States

5. “Tile Guy” Mal said it -Malcolm Campbell Tile Guy

8. The Management Cycle Basic Layer Organize Direct Control Plan

9. The Basic Layer is Effective for the P/U Truck Guy and Small Business Principal “Great Risk Taker” Organize Direct Control Plan

10. The Management Cycle Functional Layer Demobilizing Sales Estimating Logistics Transitioning Production Mobilizing Supervising Purchasing Marketing Punchlist Accounting Unresolved I$$uses Paying Billing Engineering Warranty Organize Direct Control Plan

11. The Functional Layer is Effective for Small to Medium Size Business Demobilizing Sales Estimating Logistics Transitioning Production Mobilizing Supervising Purchasing Marketing Punchlist Accounting Unresolved I$$uses Paying Billing Engineering Warranty Principal “ Great Controller” Organize Direct Control Plan

12. The Frictional Layer Demobilizing Sales Estimating Logistics Transitioning Production Mobilizing Supervising Purchasing Marketing Punchlist Accounting Unresolved I$$uses Paying Billing Engineering Warranty Principal “ Great Punching Bag” CHANGE CHANGE CHANGE CHANGE Organize Direct Control Plan

16. With Variance Analysis

17. With Variance Analysis

18. Let’s Dig a Little Deeper

19. Let’s Dig a Little Deeper

27. Variance Analysis a Cost Control Process

35. Unique ID # Date information Job and work area info Project contacts Reference Items Reference PO’s Productivity expectation Description of the work A place for shop material and equip Authorization A Work Order Has

36. A Purchase Order Has Date information Shipping and Terms Vendor Info Delivery address and info List of Items Purchased Remark for Vendor Cost Tax Freight and Total Authorization Unique ID # Job Name

37. Tracking Production in Real Time Management by Exception

40. Develop a Variance Coding List

45. questions and discussion