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Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac 2
Aviation
Engineering
Consulting
Systems
• Two decades of Professional Experience
• Designed Many systems
• Business Process Consultancy
• Certified Accountant • Systems Champion
Where there is no vision, the people perish.
- The Bible, Proverbs (29:18)
He who fails to plan, plans to fail
4 Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac
Rear View: Variance Analysis Historical Trends
Wind Screen Short term Planning
RPM Other operating
bottlenecks
Gear Investment Decisions
Cost Optimization
Business Strategy
GPS Long terms plans
Benchmarking ,global trends
Speed Statistical Data
Other Operating Parameters
Fuel: Cash flow
Side View Mirror Comparisons with
Competitors
5 Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac
Long Tem Plans
Production Facilities
Research & Development
Line of Business
Short Term Plans
Fiscal
Budgeting
Marketing & Sales Plan
HR Planning
6 Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac
A written plan or estimate of future income and expenses of an activity covering a definite time period.
The word ‘Budget’ taken from the old French word ‘bougette’, means purse…
Business Startup Budget
Corporate Budget
Incremental Budgeting
Zero Based Budgeting
(ZBB)
Etc. etc..
Event Management
Budget
Government Budget
8 Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac
Line Item Budget 2010 Growth Budget 2011
Growth
Budget 2012
Revenue 1,000 2.5% 1,025 2.5% 1,050
Costs 500 3% 515 3% 530
Gross Profit
500 - 510 520
Example of Incremental budget
The percentage figures arise from historical data and its relevance to the current times is questionable.
9 Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac
• Start the new year budget from Zero, without referring to previous year numbers considering the Socio- Econo- Enviro- Techno changes
• All Expenditures and Revenue must be justified with relevant details
• Cost effective alternatives can be considered to reduce the cost
• Efficiency evaluation to ensure value for money
Zero-based budgeting is a technique of planning and decision-making;
some of the features as here:…..
• Activity Based Costing (ABC) is a scientific method of calculating the unit cost of each activity based on the conditions, cost drivers and nature of the cost element at any given location.
ABC = ABC
Activity Based Costing = Always Better Control
11 Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac
Revenue •Sales Revenue
•Incidental Revenue
Cost •Direct Operating Cost •Indirect Operating Cost
•Manpower Cost •Admin Cost
Capex •General
Equipments
12 Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac
Preparation of Budget Calendar Identify Stakeholders Approval Process Communicate Management
Expectation Communication Business
Strategy Provide Statistics & Guidelines
13 Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac
Budgeted means a Passport for spending?
If Budgeted – Must Spend?
If Budgeted- Buy ONLY that?
15 Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac
16 Global Logistics & Cargo Symposium 2012, Kaula Lumpur, Jun 27-28 (c) Sam Issac
Contact Sam Issac
Tel Nos : +91 965626 4011 (India), +966 56765 1192 (Saudi Arabia) Email : sam.kalathra@gmail.com
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