Commercial Management - Level 3 Flashcards
What was the orginal budget for the OB80 works on Package C and what efficiency could have been acheived?
Orginal cost was £150K for 10 shifts and by reducing this to 9, an efficiency of £10K would have been acheived.
Explain your proposal for achieving the efficiency on OB80?
Based on the orignal delivery plan the cost per shift was £15K.
By adding two artisans to the 9 shifts at a cost of £532, the shift cost would increase to £15.5K and the 10th shift would no longer be required.
Saving of £10K.
What was the additonal scope of works on the South UPS project?
Installation of UPS’s at an additional 7 sites.
What were the delivery options you advised on the South UPS project?
I advised on four different options:
1) UPS refurbishment as opossed to a renewal.
2) Internal Delivery
3) Procurement outside of the current framework.
4) Continue with the current subcontractor.
What was the value of each delivery option for the additonal works on the South UPS project?
Refurbishment - significant cost and programme savings, refurbishment only cost apporximately £40K per sites compared to £180K for a renewal.
Internal Delivery - £4K below the current subcontractor’s unit rate.
Procurement outside - competition amongst suppliers, driving cost down.
Current Subcontractor - within NR benchmarking range of £170k - £195K.
What were some of the additonal benefits the delivery options offered?
Internal Delivery - Maximise NR staff utilisation.
Procurement outside - Providing work to multiple suppliers.
Refurbishment - design funding being used for refurbishment, further reducing funding requirements.
Current Subcontractor - design and build approach reducing risk of change at a later date.
What is the impact of booking staff time to the overhead?
Increases the department’s expenses and reduces revenue.
Puts the departments profit and loss statement in a worse position.
What metrics were included in the PowerBi report?
Staff utilisation by week.
Split of producitve and non-productive shifts.
% of non-productive shifts recoverability.
Cost of the recoverable and not recoverable non-productive shifts.
What was the benefits of the PowerBi report/ what decisions did it aid?
Why is monitoring staff utilisation important?
Work bank allocation.
Recruitment requirements.
Resource scheduling.
What actions did you take to help improve staff utilisation?
I worked closely with the works delivery manager, who was responsible for scheduling the direct delivery resource to identify work oppurtunities with local maintenance units during periods of low staff utilisation.
