Question

Q3 An engineer in the maintenance department after presenting a Gh¢5000 scheduled activities to management was given Gh¢4600 to carry out the exercise. Explain what he can do in order to perform the said exercise on time?

Answer 1

Given data is:

• Estimated amount to perform the scheduled exercise = Gh¢5000
• Sanctioned amount by the management = Gh¢4600.
• Deficit amount is Gh¢400. This is exactly 8% of the estimated amount.

Task is - How to perform the scheduled exercise within Gh¢4600?

The following points will enable the maintenance department to perform the exercise successfully. The deficit amount 8% is bifurcated into 4 areas of activities such as Re-working cost 2%; Rejections cost 2%; Postponements cost 2% and through simplifying the procedures 2% can be saved. So, totally 8% can be absorbed by adopting the following activities.

1. Re-working to be avoided - In engineering industry always there will be an opportunity of re-working. Let it be loading or unloading, fitting or dismantling, re-inspection ...etc all these activities comes under re-working. Re-working cost the time, labor, supervising, brainstorming, engineering change ...etc. So, re-working in any manner should be avoid. This will save the maintenance department for an amount of 2%.of the estimated cost.
2. Rejections to be avoided - Rejections, damages, unpredictables are having the room in working. If these are avoided the 2% of estimated cost can be saved.
3. Postponements to be avoided - While working, situations will force the working team to postpone the activity for some time. Postponements will cost the time. Time is the money. If the postponements avoided then 2% of estimated cost can be saved.
4. Review the maintenance procedures, and simplify them - Maintenance procedure of the particular exercise to be reviewed once again. Surely there will be a room for simplification. It will be possible to narrow the time up to some extent. Brainstorming along with team members will enable the team leader for simplification of procedure for the given exercise. So that 2% of estimated cost can be saved.

Conclusion: By practicing the above 4 points, it will be possible to save 8%. Saving means earning. As stated above, the deficit amount is 8% i.e. Gh¢400. So that the scheduled activities can be carry out with Gh¢4600 successfully.