TUTORIAL WEEK 12

1. Define key performance indicators in measuring the performance of the planning and
budgeting process:
- Financial
The planning of the budget will be impacted by financial performance. Due to the strong
and favourable performance in terms of capital, revenue, and resources, the financial
performance will have a beneficial impact on the planning budget for the stakeholders.
- Customer satisfaction
It serves as the focal point for determining customer satisfaction, service quality, client
complaints, and the scope of services provided in response to client requirements when
doing building maintenance. When clients express dissatisfaction, the budget needs to be
revaluated.
- Variation
Using exception reporting, any notable variations in labour hours, work order costs, or the
overall cost of maintenance for a certain asset should be found. When possible, the
company should find alternate solutions or take other efforts to shorten the process and
save money. By doing these things, you can increase the effectiveness and efficiency of
the maintenance programme.
2. The term "variance reporting" refers to the equipment required for building maintenance
accounts. Finding the difference between the budgeted amount and the actual, expense, or
revenue requires careful consideration of variance reporting. A variance report, to put it
simply, is a document or report that contrasts the anticipated and actual financial results. The
variance report is typically used to analyse the discrepancy between budgeted performance
and actual performance. the expected expenses of future plan items that differ from the
budget estimates as a result of new knowledge. When the actual budget exceeds expectations,
a variance is required for the report. Through the use of variance reporting, the report will
analyse and then display the discrepancy, which may be expressed as a percentage of the
overruns in operating expenses such as above or under the actual budget. If the maintenance
costs or budget are less than the expenditures, a variance report is then necessary. It is
capable of displaying the variance report's negative aspects. Then, if the bids exceed the
estimates, a variance report that can analyse how much of the bidders' available resources
were overused would be needed. The result will be an increase in the costs associated with
tendering. Another is an expansion of the work's scope, which typically happens when an
emergency arises and the budget needs to be changed. Additionally, if the cost and work
planning are inefficient, a variance report is required. If the organisation lacks or is unable to
use adequate resources for their work planning, the variance will grow.
The budget data for a certain time period is in one column of the variance report, while the
actual data for the same time period is in another column. You can choose to describe the
deviation as a financial figure and then again in percent..