hd cpd assignment

7/29/2019 HD CPD Assignment

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Reducing the monthly household expenditureBy 20% by using the Pareto law

Without affecting to the

Quality of life

By

Nisansala K.T.D

Index No: - HDBM-F-101030

A dissertation

Submitted in partial fulfillment

Of the requirement of the Continuing Professional Development

module in the Higher Diploma in

Business Management- 10.1 Batch

National Institute of Business Management,

Colombo 07

15th June 2010


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Preface

The modern world is so complicated. The competition between one person to another,

one organization to another and one country against the other is too high in the modern

society. In this complicated world there are lot of things to be well managed otherwise it

will affect bad to the quality of life.

One of a major factor which can be acted as a vital role in the modern life style is the

household expenditure. People earn, work & even fight in order to win the competition of

living in a comfortable life with full capacity to spend. But it is a dream for most of the

people in the society that according to Pareto law 80% off the world population is getting

only 20% income off the entire income in the world while 20% off the world population

is getting a higher portion of the income 80%.

In order to face this challenge, people in the society have to control as well as manage

their expenditure for the household activities while reducing the unnecessary cost

elements involve in the items that they purchase.

When they follow the strategy of eliminating the unnecessary costs involve in the daily

purchases, their will remain a better portion of the income as savings.

So why I did this project was to identify the unnecessary cost elements involve in the

monthly household expenditure & to establish strategies to reduce the unwanted costs

without affecting to the quality of life.


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Acknowledgement

Without directions & correct guidance, the way to the triumph is impossible. But a good

teacher can direct naturally his students for the victory of their life. You are one of the

best teachers that I met in my life not only for your teaching but as a good man living in

the society.

Dear Sir, this little effort is acknowledged to you in order to respect your knowledge &

kindness.


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Executive Summary

This project is a partial requirement for the fulfillment of the Continuing Professional

Development module of the Higher Diploma in Business Management. I was asked to

start the project in the mid February 2010 & from that day to the end of the project I

gained lot of new knowledge related to many fields not in the academic point of view. but

in the social point of view.

This project is a process oriented project & the project was done according to a time

frame- the 3W method. The origin of the project is the PDCA cycle method which is the

main factor of developing Japan in to that level.

According to PDCA cycle I planed to conduct the project by Understanding what the

project is. Then I developed a data collection method (CR book) in order to collect data

in a proper manner. By developing a 3W implementation plan I completed the planning

part of the project.

I aligned my family members to help to do the project by collecting bill & data. I

educated my family members to reduce the household expenditure by not affecting to the

quality of life.

Then I analyzed the data by using Pareto law & identified what the vital few items were

which almost contribute 80% off the monthly household expenditure. I took manydecisions to reduce the expenditure by not affecting to the quality of life.

Finally I came up with many findings as well as strategies to reduce the monthly

household expenditure. The May month household expenditure was reduced by 11.33%.

But the objective was to reduce the monthly household expenditure by 20%. Why I could

not be able to reduce the expenditure up to that level that I did the project by respecting to

the natural laws which emphasizes that I did the project without affecting to the quality of

life.


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Table of Contend

Chapter Page

Chapter 1- Introduction 1-6

Introductory Paragraph 1-2

Statement of the problem 3-4

Objective 3-4

Significance of the study 4-6

Research questions 6

Chapter 2- Background ( literature review) 7-9

Chapter 3- Methodology 10-18

Restate the purpose 10

Population & sampling 10-11

Instrumentation 12

Procedure & time framework 13-15

Conceptual framework- Analysis plan 15-16

Validity & reliability 17

Assumptions 17

Scope & limitations 18

Chapter 4- Data Presentation 19-25

Chapter 5- Data Analysis 26-35

Chapter 6- Findings 36

Chapter 7- Conclusions & Recommendations 37-50

Conclusions 37-47

Recommendation 48-51

Appendix 52


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List of Tables

Table Name Table

No

Page

The four roles of leadership VS PDCA cycle 01 13

The 3W Time Frame Work Related to the Project 02 14

Data Collection- March

Opening Stock: - 28th

Feb: 2010 03 19

Purchases- March 04 20Closing Stock: - 01

stApril 2010 05 22

Data Collection- May

Opening Stock: - 30t

Apl: 2010 06 23

Purchases- May 07 23

Closing Stock: - 01st

June 2010 08 25

Data Analysis Sheet- March 09 26

Data Analysis Sheet- March 10 31

Expenditure comparisons of March & May 11 37

The comparison between the purchases of March

& May

12 38


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CHAPTER 1: - Introduction1.1)Introduction to the ProjectThis project is a requirement to the partial completion of the Continuing Professional

Development Module in the higher diploma in Business Management conducted by the

National Institute of Business Management, Colombo.

This project is a result of an individual research on the reducing of monthly household

expenditure by a reasonable percentage by using the Pareto law without affecting to the

quality of life.

The basic of this project is the 5W 1H Questioning Method. I used the 5W 1H

questioning model form the beginning to the end of this project as the Questioning is the

most important thing in the problem solving.

The way ofusing the 5W 1H Questioning method

I questioned my self in a various way about the project, the way it must conduct & the

way of implementing the Objective. I questioned: -

What: - what is this project?

Why: - why I have to do this project? (Reason)

When: - when I have to start & finish? (The time frame)

Where: - where I have to conduct the research? (The Scope)

Who: - who are the related person for getting helps & advises?


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How: - how I have to organize & conducting the project? (The methodology & all)

By questioning my self I got to know that there are lots of unnecessary costs involve with

our day today life.

By continuing questioning I got a clear understand about the,

Prevailing problem Reason for the occurring of the problem Way of solving the problem Check weather I implement the objective by solving the problem

Costs are involved in every transactional activity in this world. As an example concernthe production field. The whole production process includes both necessary as well as

unnecessary cost. Concern a single house which consists only with four or five members.

The situation is same as I mentioned earlier.

So my objective was to reduce the unnecessary costs involve in the household

expenditure & I implement the objective by reducing the monthly house hold expenditure

by 20% by using the Pareto law without affecting to the quality of life.

In order to do the project in a successful manner I used many strategies which are very

easy to handle in our day today life.

Management techniques used to do the project

5W 1H Questioning model PDCA cycle method 3W Implementation method Pareto law method Data sampling method

I used these techniques to empower my self & others in order to implement the project,

allocate task between family members to do the project at the right time etc.

The methodology of conducting & organizing the project is described at the 3rd

Chapter.


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1.2)Statement of the problemThe problem of the research is a common problem in the society. It is all about the

unsatisfied life witch arises because of the high cost of living. The core of the problem

mentioned in the project is that the monthly household expenditure is very close to the

monthly income of the family. So the problem is why it is happening & how to increase

the gap between expenditure & income in order to save some money for future needs.

Cost of living can be described as the cost taken in order to buy consumption relateditems & to do monitory transactions which are essential to conduct within a given period

of time.

So the problem stated at the projectis there a better way to reduce the unnecessary

cost involves in the cost of living?

The report gives the answer to the problem by giving many ways & recommendations

which are helping people to reduce their household expenditure by a reasonable

percentage without affecting to the quality of life.

1.3) Objective of the researchWhen an objective is going to establish, it should be completed with Main Three aspects.

They are,

Performance Standard Condition

So I set the objective of the research according to the above mentioned method.The Objective of the research is To reduce monthly household expenditure by 20%

by using the Pareto law without affecting to the quality of life.


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In my objective the,

o Performance is the reduction of the monthly household expenditureo Standard is the rate of reduction- 20%o Condition is the using of Pareto law & the research has to do by not

affecting to the quality of life.

1.4)Significance of the studyIn the research the significance of the entire research is respecting to the natural

laws and respects others rights by following & obey the natural laws.

The five natural laws

1) I will not be trouble for any living creature as they are like me2) I will not get things related to others without permission.3) I will not behave in a bad way & harmful way to both me & to the society4) I will protect my truthfulness5) I will not take anything which jeopardize my alertness

These five natural principles are connected with the research directly. So let we see how

the natural laws are interconnecting with the research.

I have to obey to the 1st natural law by respecting the physiological needs ofthe family members while doing the project. That is why I set my objective

with the condition ofnot affecting to the quality of life.

I have to respect to the 2nd natural law by not stealing others documents &creations related to the project respect others to do their own work

individually.

I behave in a perfect manner while I was doing the project & I absorb thatquality to my life by respecting to the 3

rdnatural law.


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I obey to the 4th natural law by doing my research in a truthful manner. Iused all the data & information according to the records that I kept daily.

They are true & 100% correct.

I kept my alertness not only for the implementing of the project but to mywhole life.

Leadership as significance

I have to mention that I used leadership as a significance of this project that the power of

leadership helped me to direct my project towards a success.

Four roles of leadership vs. the aspects of the project

Aligning

Pathfinding

The four leadership roles

Empowering

Modeling

I see the connection and the way of doing the project & set my plan to achieve thegoals trough Aligning. I aligned my strength, powers to do the project in a

success manner.

I planned all the activities with a time frame & it helped me to achieve thePathfinding role as a leader in this project. I individually did the project with the

help of my vision.

I empowered my family members in order to do the project in a proper manner. I

allocated those bearable tasks & responsibilities to my family members which helpedme a lot to do the project with high accuracy.


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I monitor & evaluate what I did at the project & the way of achieving modlinghelped me to practice the objective of the project in my normal life.

The above mentioned significances help me to do the project in a correct & an acceptable

manner.

1.5)Research QuestionsThis project is not depends on the questionnaires. The project is totally depended on the

day today data collection as well as the personnel interviews with the family members.

But I questioned my self to get the,

o Meaningo Contributiono Integrity

I questioned,

The 5W 1H aspect of the research? What are the areas that I have to cover within the given time period? How I have to manage the available time? How can I reach the objective? What are the vital few areas in the expenditure? Am I respecting the natural laws?

The above mentioned three aspects of the questioning led me to do the projectin a meaningful way with fully integrity in my mind with the fullest contribution

to me to my family as well as to my studies.


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CHAPTER 2: - BackgroundEvery activity in the modern world is very complex & all those activities are involving

cost. As an example think about a long term project which runs in the country for the

wellbeing of the country. Though it is involving with the development of the country it

will cost a lot at the beginning.

Family is the basic building block in the society & the society can be described as a large

collection of families. So the wellbeing of the society is depended on the wellbeing of the

wellbeing of every single family in the society.

What is meant by family wellbeing?

The condition of a particular family with enough economic strength, social strength &

personnel strength can be described as the family wellbeing. So in order to make the

family wellbeing trough these factors the family members got the responsibility to direct

their family towards the goal.

How to generate the strengths within the family?

A family has to be stand on their own foots by not shaking their heads for anyone. The

family must manage their activities by themselves & the members of the family have to

be participated actively for the family decision making process.

In order to maintain the wellbeing of the family the family members have to generate the

basic aspects of the family wellbeing.

I identified three main aspects which cause to develop the wellbeing of the family. These

three main aspects of the family will direct the family towards the wellbeing.


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So the economic strength is the most important strength among the three aspects of thefamily wellbeing. The economic strength will lead the family to get the other two aspects

with relevant qualities.

So this project is all about preventing unnecessary costs which occur in the house hold

expenditure and direct the entire family towards the economies wellbeing in a quality of

life.

In our day today life we are doing many monetary transactions which are related to our

consumption. So there we can see how cost involves in every transaction we do. But

many of the modern day people do not know that the cost they see is consisted with some

unnecessary aspects and they dont know that the unnecessary costs can be controllable.

As an example think of a situation where the electricity bill rather the expenditure is very

high. So what the family members can do is to question from their selves to find the

Social respect towards the family

Basic rights within the societySocial strengths

Personality with confidence

Be a wild pigPersonnel strengths

Enough wealth for existing

Control/ prevent unnecesary costs

Economic

strenghts

Social respect towards the family

Basic rights within the societySocial strengths

Personality with confidence

Be a wild pigPersonnel strengths

Enough wealth for existing

Control/ prevent unnecesary costs

Economic

strenghts

Formatted: Font: (Default) BaskerviFace, 16 pt


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reason for reaching the expenditure so high. Then they can take actions to prevent the

unnecessary costs involve in the electricity expenditure.

Why Japanese are ahead in the world?Japan can be considered as the best economic growth country in the world. Japan went to

dust because of the bad influence of the 2nd

world war. They were attacked by the

American in an inhuman manner. The Americans put two atomic bombs to Hiroshima &

Nagasaki and just after the exploitation of the bomb Japan went to dust within few

seconds. Thousands of people died & many others were injured. The economy of the

Japan was failed in a second.

But the Japanese were influenced by the ZEN Buddhism and they knew what the

uncertainty involves in every living and nonliving things in the world. So they realized

that they need a Change (KAI) in order to have betterment in the whole Japanese society.

They invented the concept KAIZEN that leads the Japanese for a betterment trough a

Change. The Japanese got the passion & they got the attitude & skills. They forgot the

past & worked according to the present movement. They have the conscience to

implement their desires. That is why just 25 years after that sad incident the Japan

became the 2nd

largest economy in the world.

Why I am taking this incident as the back ground of my research is if Japanese do like

that why we can manage our day today activities? They questioned themselves about

different things. So we have to get the Meaning and we have to contribute and we can

make our integrity by questioning.

We have to influence as well as inspire ourselves in order to develop ourselves as

Wild Pigs

Completion is valuable than Achievement


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CHAPTER 3: - Methodology

3.1) Re-state the problem

The problem in the research is Why there are many unnecessary costs involve in the

monthly household expenditure.

The statement of the problem is is there a better way to reduce the unnecessary cost

involves in the cost of living?

So the entire project is running depends on the statement of the problem & the projectgives many successful ways to reduce the monthly household expenditure by 20% by

using the Pareto law as a tool without affecting to the quality of life.

Another aspect of the problem is the Income & the expenditure. In our home income my

mother & my father are the people who contribute to the income. My mother is a teacher

& my father is a businessman. According to the family income my father contribute

around 35000/= and it can change month to month as he is a businessman. My mother

contributes 33000/= as a fixed amount but the full amount is not receiving to her hand

that she involve in some contract with financial institutes to pay for loans that she

borrowed. So the monthly income of our family will be around 65000/= to 70000/=. But

the problem is the monthly expenditure of our family is that much close to the income.


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So the problem arises from the project is how to control unnecessary costs involve in the

monthly household expenditure. So the objective must reach to increase the gap between

income & expenditure in order to save money for future needs.

3.2) Population & Sampling

Data collection is the must duty in order to do the report. The day to day data continuous

data collection is a must to find the way to identify the vital few items which contribute

more portions to the monthly household expenditure.

I used the DIKW Hierarchy in order to collect the data, convert data into user friendly

manner which means the information & use information to analyze the situation as the

knowledge & finally to continue the process as a habit & enjoy the benefits as the

wisdom.

What is DIKW Stands for?

D - Data

IInformation

KKnowledge

WWisdom

The DIKW hierarchy is used to implement the Wisdom by converting data in to

information & information in to knowledge.

According to my sample of data I recorded data of my household expenditure in two

months. The months I recorded data are March & May. I was asked not to take April that

it is the New Year season and the expenditure is not normal like in the other months. So

the population of 12 months of the year will be represented by the March and Maysample. March sample was used to identify the items which are affecting the expenditure

thoroughly determine the ways to reduce the unnecessary costs involve with them and

May sample is the representation for reducing the expenditure.


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3.3) Instrumentation

I did interviews with my mother & father about the family income & expenditure & I got

a basic idea about the how the family income is spending as expenditures. In my

interviews with my mother & father I questioned from them about some areas related to

the family expenditure

I asked them,

What is the normal monthly income of the family? What is the normal monthly expenditure of the family? What are the vital items which contribute more to the monthly household

expenditure?

What can we do to reduce the monthly household expenditure as a family?I developed a bill book as an evident to prove about the family expenditure. I asked my

mother, father and my brother to collect & give their bills to me in order to paste the bills

in the bill book. I emerged as a leader by Aligning them to implement the task & I

Empowered them to collect and record data to implement my target.

I developed a Data entry book in order to keep my data in a proper manner. I recorded allthe purchases related to the daily consumption.


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Imagination is more important than Knowledge, that knowledge is limited while

imagination embarrass the entire world

Professor Albert Einstein

I developed a note book to generate my imagination. I record every imagined feeling

related to this project in that note book. Now it became a habit on me and I practiced that

valuable habit as Setsuike. Because of that habit my imagination worked and I was

motivated by my imagination.

3.4) Procedure & Time Framework

The procedure: - the way I did the project

I was asked to do this project by Mr. Asoka de Silva in order to complete the Continuing

Professional Development (CPD) of the higher diploma in Business Management in the

mid February 2010. According to Mr. Asoka de Silva I have to emerge my self as leaders

as well as I had to follow the PDCA Cycle. So the project is a combination of leadership

roles & the PDCA cycle.

The four roles of leadership VS PDCA cycle (Table No 01)

Role of leadership Aspect of PDCA cycle Activity related to the project

Pathfinding

(see the way)

Plan Understand what the project is. Developing a data collection

method (CR book)

Developing a 3Wimplementation plan

Setting objectives


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Aligning

(see connection)

Do Educate the family members &expect their helps

Dividing the CR Book in to 30pages & collecting data

Start to collect billsEmpowering

(see others)

Check Analyzing the data in ascientific manner ( Using

Pareto Law)

Find how the vital few itemsare contributing more to the

expenditure

Modeling

(see within)

Action Conclusion about the reductionof May months house hold

expenditure by comparing to

March

Giving recommendations aboutthe strategies.

So I started to do the project by understanding what the project is. I see the way as a

leader & I planed how to do the project with a relevant period of time frame work. The

time frame work according to the 3W implementation system is shown below.

The 3W Time Frame Work Related to the Project (Table No 02)What to do When to do Who is responsible

01 Educate family members 20-25 Feb: 2010 Dinum (my self)

02 Dividing the CR book and Developing 27-28 Feb: 2010 Dinum

03 Record data in a separate book 28 Feb: 2010 to

01 April 2010

&

31 April 2010 to

01 June 2010

Mr. Ranil (Father)

&

Mrs.Kanthi (Mother)

04 Data Providers Entire March &

Entire June

All the family

members

05 Collecting bills Entire March &

Entire June

Pathum ( brother)


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06 Closing the data collections in the CR

book

01 April 2010 &

01 June 2010 for

March & May

respectively

Dinum

07 Prepare the Bill book 01 June 2010 Dinum

Chapter writings + Typing

08 Chapter 01 + the pre chapter parts 22- 27 May 2010 Dinum

09 Chapter 02 29-30 May 2010 Dinum

10 Chapter 03 + start analyzing data 01-04 June 2010 Dinum

11 Chapter 04 06-07 June 2010 Dinum

12 Chapter 05 08 June 2010 Dinum

13 Chapter 06 09 June 2010 Dinum

14 Chapter 07 10-12 June 2010 Dinum

15 Re-Checking All the things related to

the project

13 June 2010 Dinum

16 Getting Printouts & binding the

project & prepare the requirements

13 June 2010 Dinum

17 Submitting the project 21 June 2010 Dinum

My mother, Father & my brother gave me an outstanding support in order to do this

project in a successful manner. They helped me to collect the data, making the bill book

& my family members advices & suggestions helped me a lot to reduce the house hold

expenditure by 20%.

As a family we gat many decisions to save the Electricity, reduce the expenditure for

the consumption related items by buying goods from the Wholesalers & maintain

the stocks well etc to reduce the total monthly house hold expenditure in a huge

number.


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3.5) Conceptual Framework

This is all about the way of imaging & evaluates the data that I collected related to the

monthly house hold expenditure. To do this I will take an example that I learned from our

sir Mr. Asoka De Silva.

I knew the connection between the Voltage (V) & the Current (I) as a positive

relationship. But I did not know the meaning correctly. I knew previously that how to get

the relationship between Voltage & Current by using a voltmeter to measure voltage &using an ammeter to measure the current. Then I divided the voltage from the current &

got the Ohms value as the resistance

But this is no the correct way. The correct way is observing the ammeter when the

voltmeter is changing its capacity. Then develop a graph to get the relationship between

the Voltage & the Current.


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The graph that draws was a strait line that goes across the origin. So it emphasizes the

positive relationship between the Voltages & the Current and the connection is known as

the Resistance.

Like that example my imagination worked to do my project with a meaning & I

contribute my strengths to implement the integrity- the success of my project.

0

0.2

0.4

0.6

0.8

1

1.2

0 0.2 0.4 0.6 0.8 1 1.2

Resistence

0

0.2

0.4

0.6

0.8

1

1.2

0 0.2 0.4 0.6 0.8 1 1.2

Resistence

Formatted: Font: (Default) Times Ne12 pt


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I used Pareto law to identify the vital few items that contribute more to themonthly household expenditure.

I drew a bar chart in order to find what the vital few items are. I used the cumulative values from the analysis sheet in order to find the

percentage of affecting vital few items to the monthly household expenditure.

3.6) Validity & Reliability

What we are doing right here & now is the most important thing in this world

So in order to do the project in a valid & a reliable manner I collect all the bills related to

the daily purchases. Then I maintain a bill book & paste all the bills according to their

related dates. But I was not receiving any bill from the retailers that they usually not issue

bills for the customers & I prepared bills related to the purchases with the help of mymother & father.

I attached even bus tickets to the bill book which will prove that I did the project in a

genuine manner.

Parallel to the bill book I maintained a CR book to enter data of all the purchases related

to the respective dates.

3.7) Assumption

I had to build some assumption in order to continue the project. They are,


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The Electricity Bill is normally coming in between 19 to 21 of every month. Butthere will remain 10 to 12 days in the month. But I assumed the Electricity bill is

representing the whole month.

The Gas consumption is also got the same problem. Normally we consume theGas bottle about 25 days & I assumed the gas bottle is for a whole month

whenever it finishes in the month. ( but I keep record the consumed days of the

gas & I increased the days of using the Gas bottle that I mentioned in the

conclusion)

3.7) Scope & Limitation

The scope of the project

The scope of the project is my family which consisted with four members. So this scope

of the project can be applied to the entire society that the society is completed with large

number of families.

The limitations of the project

The major limitation of the project is I concerned only the current assets purchases

related to the monthly household expenditure. I neglected the fix assets purchases that

that kind of purchases can be seen in a very few times in the year and those costs are very

high in monitory value.

The other limitation is that I used only two months for my data collection one month is to

take action to reduce the expenditure & the other one is to compare the results. But this

sample is not representing the real picture. So this issue is also a limitation.


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CHAPTER 4: - Data Presentation

In this chapter I will show the Data that I collected during the March & May months. The

March data helped me to understand the vital few items which contributed more to the

total monthly household expenditure & the May month data collection sheet helps to get

an understand about the reduction of monthly household expenditure.

The methodology of Data collection is that I add opening stock with the Purchases &deducted from the closing stock in order to get the monthly usage in the Analysis sheet.

Data Collection- MarchOpening Stock: - 28th Feb: 2010 (Table No 03)Item

No

Description Unit Quantity Unit Price Value

01 Rice Kg 1Kg Rs

84.00

Rs

84.00

02 Milk powder Packet 1 Packet Rs225.00

Rs225.00

03 Tea Leaf Kg 50g Rs

720.00

Rs

36.00


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Purcha

ses

from

01st

March

2010 to

31st

March

2010

(TableNo 04)

Item

No

Description Unit Monthly

Usage

Quantity

Unit Price Monthly

Usage

Value(Rs)

13 Dinum- Pocket Money - - - Rs

7,680.00

20 Petrol for the Motor Bike Litter - - Rs

4,970.00

11 Vegetables Kg 11.1kg - Rs

1,6800.00

10 Biscuits 100g pack 24 25.00 Rs

600.00

04 Chili Kg 250g Rs

400.00

Rs

100.00

05 Coconut - 1 Rs

35.00

Rs

35.00

06 Coconut Oil Bottle 1/2 Bottle Rs

220.00

Rs

110.00

07 Dhal Kg 500g Rs

220.00

Rs

110.00

08 Dry fish Kg 150g Rs

846.00

Rs

127.00

09 Tooth paste - - Rs

130.00

Rs

130.00

10 Biscuit Packet - Rs

25.00

Rs

25.00

11 Vegetables Kg 500g Rs

80.00

Rs

40.00

Soap Bar 1 Rs

27.00

Rs

27.00

13 Dinum- Pocket Money - - - Rs

320.00

14

Pathum-Pocket

Money

- - -

Rs

100.00

15 Sugar Kg 500g Rs

110.00

Rs

55.00

Rs

1,491.00


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18 Fish Kg 4.5kg - Rs

1,310.00

07 Dhal Kg 3.75kg - Rs

595.00

29 Gas 12.7 Kg - - Rs

1,550.00

02 Milk Powder 400g pack 6 - Rs

1,350.00

28 Water Bill - - - Rs

250.00

23 Fruits - - - Rs

380.00

08 Dry Fish Kg 500g 1000.00 Rs

517.00

14 Pathum-Pocket Money - - - Rs

2,200.00

43

Bulb

- - - Rs

65.00

27 Pen - - - Rs

45.00

33 Box of Matches Box 5 4.00 Rs

20.00

45 Penadol - - - Rs

12.00

31 Eggs - 8 15.00 Rs

120.00

04 Chili Kg 730g - Rs

280.00

06 Coconut oil Bottle - - Rs

1,503.00

21 short eats - - - Rs

1,460.00

30 Talk - - - Rs

225.00

26 Butter - - - Rs

190.00

03 Tea Leaf Kg - - Rs

176.00

25 Soya Meet packet - - Rs


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167.00

32 Curd - - - Rs

240.00

09 Tooth paste packet - - Rs

00.00

34 Shoe Polish - - - Rs

120.00

40 Stationeries - - - Rs

110.00

41 Bam - - - Rs

80.00

39 Incense sticks 200 sticks - Rs70.00

35 80 pages books - - - Rs

140.00

36 Flour Kg 1kg - Rs

60.00

44 Battery - - Rs

54.00

37 Coffee Kg - - Rs

130.00

24 Jam Bottle _ 235.00 Rs

235.00

17 Potato Kg 3.5kg - Rs195.00

12 Soap Bars 9 - Rs

225.00

19 Reload - Rs

1,900.00

01 Rice Kg 22.5 Kg - Rs

1,885.00

05 Coconut 29 35.00 Rs

1,015.00

42 Electricity - Rs

962.00

15 Sugar Kg 4kg 102.50 Rs

410.00

08 Dry Fish Kg - - Rs

517.00


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24

22 Bread 17 36.00 Rs

614.00

16 Onion Kg 3.2kg 80 Rs

205.00

Total Purchases 35420.00

Closing Stock: - 01st April 2010 (Table No 05)Item

No


01 Rice Kg 500g Rs80.00 Rs40.00

03 Tea Leaf Kg 50g Rs600.00 Rs30.00

04 Chili Kg 50g Rs400.00 Rs20.00

05 Coconut - 1 Rs35.00 Rs35.00

07 Dhal Kg 250g Rs200.00 Rs50.00

16 onion Kg 500g Rs100.00 Rs50.00

17 Potato Kg 500g Rs80.00 Rs40.00

Rs265.00

Data Collection: - MayOpening Stock: - 30TH April 2010 (Table No 06)Item

No


01 Rice Kg 1Kg Rs

85.00

Rs

85.00

05 Coconut - 1 Rs

35.00

Rs

35.00

06 Coconut Oil Bottle 1/4 Bottle Rs

180.00

Rs

45.00

13 Dinum-Pocket money - - Rs


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25

320.00

14 Pathum-Pocket

money

- - - Rs

100.00

11 Vegetables Kg 500g - Rs

50.00

Rs

635.00

Purchases from 01st May 2010 to 31st May 2010 (Table No 07)ItemNo

Description Unit MonthlyUsage

Quantity

Unit Price MonthlyUsage

Value(Rs)

13 Dinum- Pocket Money Rs

6,400.00

27 Pen Rs

60.00

02 Milk powder packet 7 213.00 Rs

1,491.00

19 Reload Rs

1,850.00

06 Coconut oil Bottle 8 bottles 153.00 Rs

1,255.0024 Jam Rs

225.00

11 Vegetables Kg 11kg - Rs

1,510.00

32 curd _ _ _ Rs

250.00

14 Pathum-Pocket Money Rs

2,000.00

08 Dry fish kg 500g 980.00 Rs

490.00

05 Coconut Rs

928.0042 Electricity Rs

591.00

22 Bread 17 35.00 Rs


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26

595.00

18 Fish Kg 4kg 260.00 Rs

1,080.00

10 Biscuits Packs 24 22.00 Rs

528.00

20 Petrol for the Motor Bike Littre 115.00 Rs

5,200.00

15 Sugar Kg 5kg 93.00 Rs

465.00

21 Short eats Rs

520.00

23 Fruits Kg - - Rs420.00

04 Chili kg 750g 360.00 Rs

270.00

28 Water Bill Rs

250.00

31 Eggs _ 8 15.00 Rs

120.00

01 Rice kg 23 kg 67.00 Rs

1,530.00

09 Tooth paste Rs

120.00

26 Butter Rs200.00

03 Tea Leaf kg 400g 487.00 Rs

195.00

45 Penadol Rs

30.00

25 Soya Meet packet 3 55.50 Rs

167.00

16 Onion kg 4kg 41.25 Rs

165.00

35 80pages Books Rs

155.00

37 Coffee Rs

130.00

34 Shoe Polish Rs


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27

120.00

17 Potato kg 4kg 41.25 Rs

165.00

39 Incense sticks Rs

80.00

07 Dhal Kg 4kg 140.00 Rs

560.00

46 Washing powder Rs

100.00

29 Gas Cylinder 1 cylinder Rs

1,779.00

47 Salt Packet 3 packs Rs60.00

12 Soap bar 10 23.5 Rs

235.00

40 Stationeries Rs

120.00

33 Box of Matches box 5 4.00 Rs

20.00

48 Nails kg 100g 150.00 Rs

15.00

32058.00

Closing Stock: - 01ST June 2010 (Table No 08)Item

No


01 Rice Kg 1Kg Rs

85.00

Rs

85.00

15 Sugar Kg 500g Rs

110.00

Rs

55.00

11 Vegetables Kg 500g Rs

60.00

Rs

200.00


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28

CHAPTER 5: - Data Analysis

In this chapter I have presented all the data that I found according to the descending order

of their monthly usage values (Expenditure).

Data Analysis Sheet- March (Table No 09)Items are mentioned according to the descending order of their usage values in the

month.

Item

No

Descriptions Unit Monthly

Usage

Quantity

Unit

Price

Monthly

Usage

Value(Rs)

Cumulative

Value in Rs

Cumm.

%

1 13 Dinum- Pocket Money - 24 _ Rs

7,680.00

Rs

7,680.00

20.5%

2 20 Petrol for the Motor

Bike

Litter 36.5 _ Rs

4,970.00

Rs

12,650.00

34.5%

3 14 Pathum-Pocket Money - 22 Rs

2,200.00

Rs

14,850.00

40.5%

4 19 Reload _ _ _ Rs

1,900.00

Rs

16,750.00

45.7%

5 01 Rice Kg 22.5 Kg 85.00 Rs

1,885.00

Rs

18,635.00

50.8%

6 11 Vegetables Kg 11.5Kg Rs

1,720.00

Rs

20,355.00

55.5%

7 02 Milk Powder 400g

pack

7 225.00 Rs

1,575.00

Rs

21,930.00

59.8%

8 29 Gas 12.7 Kg 1 bottle 1550.00 Rs

1,550.00

Rs

23,480.00

64.0%

9 06 Coconut oil Bottle 8.5bot 180.00 Rs

1,503.00

Rs

24,983.00

68.1%

10 21 short eats _ _ _ Rs

1,460.00

Rs

26,443.00

72.1%

11 18 Fish Kg 4kg 330.00 Rs

1,310.00

Rs

27,735.00

75.7%

12 05 Coconut 29 35.00 Rs Rs 78.5%


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29

1,015.00 28,768.00

13

42

Electricity

_ _ _

Rs

962.00

Rs

29,730.00

81.1%

14 07 Dhal Kg 4kg 160.00 Rs

645.00

Rs

30,375.00

82.8%

15 22 Bread _ 17 36.00 Rs

614.00

Rs

30,989.00

84.5%

16 10 Biscuits packet 24 25.00 Rs

600.00

Rs

31,589.00

86.2%

17 08 Dry Fish Kg 500g 1000.00 Rs

517.00

Rs

32,106.00

87.6%

18 15 Sugar Kg 4.5kg 100.00 Rs

465.00

Rs

32,571.00

88.8%

19 23 Fruits _ _ _ Rs

380.00

Rs

32,951.00

89.9%

20 04 Chili Kg 750g 400.00 Rs

300.00

Rs

33,251.00

90.7%

21 16 Onion Kg 3.5kg 85.00 Rs

295.00

Rs

33,546.00

91.5%

22 28 Water Bill _ _ _ Rs

250.00

Rs

33,796.00

92.2%

23 32 Curd _ _ _ Rs

240.00

Rs

34,036.00

92.8%

24 24 Jam Bottle _ 235.00 Rs

235.00

Rs

34,271.00

93.5%

25 17 Potato Kg 3.5kg 70.00 Rs

235.00

Rs

34,506.00

94.1%

26 12 Soap Bars 9 25 Rs

225.00

Rs

34,731.00

94.7%

27 30 Talk 1 225 Rs

225.00

Rs

34,956.00

95.3%

28 26 Butter _ _ _ Rs

190.00

Rs

35,146.00

95.9%

29 03 Tea Leaf Kg 300g 560.00 Rs

176.00

Rs

35,322.00

96.3%

30 25 Soya Meet packet 3 57.00 Rs

167.00

Rs

35,489.00

96.8%

31 35 80 pages books Books 4 35.00 Rs Rs 97.2%


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30

140.00 35,629.00

23 37 Coffee Kg Rs

130.00

Rs

35,759.00

97.5%

33 09 Tooth paste packet Rs

130.00

Rs

35,889.00

97.9%

34 31 Eggs 8 15.00 Rs

120.00

Rs

36,009.00

98.2%

35 34 Shoe Polish _ _ _ Rs

120.00

Rs

36,129.00

98.5%

36 40 Stationeries _ _ _ Rs

110.00

Rs

36,239.00

98.8%

37 41 Bam _ __ _ Rs80.00

Rs36,319.00

99.1%

38 39 Incense sticks Packet _ _ Rs

70.00

Rs

36,389.00

99.3%

39 43 Bulb _ _ _ Rs

65.00

Rs

36,454.00

99.4%

40 36 Flour Kg 1kg 60.00 Rs

60.00

Rs

36,514.00

99.6%

41 41 Battery _ _ _ Rs

54.00

Rs

36,568.00

99.7%

42 27 Pen _ 3 15.00 Rs

45.00

Rs

36,613.00

99.91%

43 33 Box of Matches Box 5 4.00 Rs20.00

Rs36,633.00

99.96%

44 44 Penadol _ _ _ Rs

12.00

Rs

36,645.00

100%

Rs

36,645.00


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Bar Chart Representing March Data Collection


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32

Cumm


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33

Data analysis Sheet: - May (Table No 10)

Item

No

Descriptions Unit Monthly

Usage

Quantity

Unit

Price

Monthly

Usage

Value(Rs)

Cumulative

Value in Rs

Cum.

%

1 13 Dinum- Pocket Money Rs

6,400.00

Rs

6,400.00

19.6%

2 20 Petrol for the Motor

Bike

Littre 115.00 Rs

5,200.00

Rs

11,600.00

35.6%

3 14 Pathum-Pocket Money Rs2,000.00

Rs13,600.00

41.8%

4 19 Reload Rs

1,850.00

Rs

15,450.00

47.5%

5 29 Gas Rs

1,779.00

Rs

17,229.00

53.0%

6 01 Rice kg 23 kg 67.00 Rs

1,530.00

Rs

18,759.00

57.7%

7 11 Vegetables kg 12kg Rs

1,510.00

Rs

20,262.00

62.3%

8 02 Milk powder packet 7 213.00 Rs

1,491.00

Rs

21,760.00

66.9%

9 06 Coconut oil bottle 8.5bottles 153.00 Rs1,304.00

Rs23,064.00

70.9%

10 18 Fish Kg 4kg 260.00 Rs

1,080.00

Rs

24,114.00

74.2%


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34

11 05 Coconut 29 35.00 Rs

928.00

Rs

25,072.00

77.1%

12 22 Bread 17 35.00 Rs

595.00

Rs

25,667.00

78.9%

13 42 Electricity Rs

591.00

Rs

26,258.00

80.8%

14 07 Dhal Kg 4kg 140.00 Rs

560.00

Rs

26,818.00

82.5%

15 10 Biscuits Packs 24 22.00 Rs

528.00

Rs

27,346.00

84.1%

16 21 Short eats Rs

520.00

Rs

27,866.00

85.7%

17 08 Dry fish kg 500g 980.00 Rs

490.00

Rs

28,356.00

87.2%

18 15 Sugar Kg 5kg 93.00 Rs

465.00

Rs

28,821.00

88.6%

19 23 Fruits _ _ _ Rs

420.00

Rs

29,241.00

89.9%

20 04 Chili kg 750g 360.00 Rs

270.00

Rs

29,511.00

90.8%

21 28 Water Bill _ _ _ Rs

250.00

Rs

29,761.00

91.5%

22 32 curd _ _ _ Rs

250.00

Rs

30,011.00

92.2%

23 12 Soap bar 10 23.5 Rs

235.00

Rs

30,246.00

93.0%

24 24 Jam _ _ 225.00 Rs

225.00

Rs

30,471.00

93.7%

25 26 Butter _ _ _ Rs

200.00

Rs

30,671.00

94.3%

26 03 Tea Leaf kg 400g 487.00 Rs

195.00

Rs

30,866.00

94.9%

27 25 Soya Meet packet 3 55.50 Rs

167.00

Rs

31,033.00

95.5%

28 16 Onion kg 4kg 41.25 Rs

165.00

Rs

31,198.00

96.0%

29 17 Potato kg 4kg 41.25 Rs

165.00

Rs

31,363.00

96.5%

30 35 80pages Books Rs Rs 96.9%


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35

155.00 31,518.00

31 37 Coffee Rs

130.00

Rs

31,648.00

97.3%

23 09 Tooth paste Rs

120.00

Rs

31,768.00

97.7%

33 31 Eggs _ 8 15.00 Rs

120.00

Rs

31,888.00

98.1%

34 34 Shoe Polish Rs

120.00

Rs

32,008.00

98.5%

35 40 Stationeries Rs

120.00

Rs

32,128.00

98.8%

36 45 Washing powder Rs100.00

Rs32,228.00

99.1%

37 39 Incense sticks Rs

80.00

Rs

32,308.00

99.4%

38 46 Salt packet 3 20.00 Rs

60.00

Rs

32,368.00

99.6%

39 27 Pen _ 4 15.00 Rs

60.00

Rs

32,428.00

99.7%

40 44 Penadol Rs

30.00

Rs

32,458.00

99.8%

41

33

Box of Matches

box 5 4.00

Rs

20.00

Rs

32,478.00

99.9%

42 47 Nails kg 100g 150.00 Rs

15.00

Rs

32,493.00

100%

Rs

32,493.00


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Bar Chart Representing May Data Collection


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37

cum


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38

CHAPTER 6: - Findings

This chapter is presenting the findings related to the project. The analysis sheets for

March & May as well as the Histograms as well as the Cumulative Expenditure &

Cumulative percentage Histograms representing March & May have been used to find the

related facts & findings of the research.

The statistical tool that I used to analyze the data is the Pareto Law. The Pareto Law

states,

There is a connection of the lowest end & the highest end of a particular data series

in ratio 80:20

This emphasizes that large amount of a data series contribute less while less amount

contribute large to the series. This can be called as Vital Few, Trivial Manysituation.

As I mentioned in the Methodology, I applied Pareto law to the March data Analysis

Chart in order to identify the vital items that contribute almost 80% to the monthly


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39

household expenditure. Then after identifying the vital items I used many strategies to

reduce the unnecessary cost elements involve with them. I have listed the results in the

May data analysis sheet.

The Findings that I found by doing the project

The Major finding of the project- Using of Pareto Law

According to the March analysis sheet I found that 13 items off 44 items in theMarch purchases (29.5%) contributed Rs.29730.00 out of the total expenditure

Rs. 36645.00 (81.1%) in the March Purchases while 31 items (70.5%) contributed

only Rs. 6915.00 (18.9%) to the expenditure.

According to the May analysis sheet I found that the monthly householdexpenditure was reduced by Rs.4152.00 (11.33%) off the Monthly household

expenditure.

CHAPTER 7: - Conclusions & Recommendation

Conclusions: -

The conclusion is all about describing the findings & the degree of reducing the monthly

household expenditure.

1. 13 items out of 44 items in the March purchases (29.5%) contributedRs.29730.00 out of the total expenditure Rs. 36645.00 (81.1%) in the March

Purchases.

13 items (29.5%) Contributed Rs. 29730.00 (81.1%) 31 items (70.5%) Contributed Rs. 6915.00 (18.9%)


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40

(According to the Data Analysis Sheet- March)

2. 13 items out of 41 items in the March purchases (31%) contributedRs.26258.00 out of the total expenditure Rs. 32493.00 (80.8%) in the March

Purchases.

13 items (31%) Contributed Rs. 26258.00 (80.8%) 31 items (70.5%) Contributed Rs. 6235.00 (19.2%)

3. The monthly household expenditure is reduced by Rs.4152.00 reduced themonthly household expenditure by 11.33% without affecting to the quality of

life.

(Table No 11)Exp. of March Exp. of May Reducing in Rs. Reducing %

Rs. 36645.00 Rs. 32493.00 Rs. 4152.00 11.33%

4. The comparison between the purchases of March & May ( both Vital itemsand other)

Note: - please make sure that the amounts of the Items that we purchased aresame in both months. (Table No 12)

Item March May Reduced by Rs. Increase by Rs.

Dinum- Pocket

Money

Rs 7,680.00 Rs 6,400.00 1280.00

Petrol for the

Motor Bike

Rs 4,970.00 Rs 5,200.00 230.00

Pathum-Pocket

Money

Rs 2,200.00 Rs 2,000.00 100.00

Reload Rs 1,900.00 Rs 1,850.00 50.00

Rice Rs 1,885.00 Rs 1,530.00 355.00

Vegetables Rs 1,720.00 Rs 1,510.00 210.00

Milk Powder Rs 1,575.00 Rs 1,491.00 84.00


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Gas Rs 1,550.00 Rs 1,779.00 229.00

Coconut oil Rs 1,503.00 Rs 1,304.00 199.00

short eats Rs 1,460.00 Rs 520.00 940.00

Fish Rs 1,310.00 Rs 1,080.00 230.00

Coconut Rs 1,015.00 Rs 928.00 87.00

Electricity Rs 962.00 Rs 591.00

371.00

Dhal Rs 645.00 Rs 560.00 85.00

Bread Rs 614.00 Rs 595.00 19.00

Biscuits Rs 600.00 Rs 528.00 72.00

Dry Fish Rs 517.00 Rs 490.00 27.00

Sugar Rs 465.00 Rs 465.00

Fruits Rs 380.00 Rs 420.00 40.00

Chili Rs 300.00 Rs 270.00 30.00

Onion Rs 295.00 Rs 165.00 130.00

Water Bill Rs 250.00 Rs 250.00

Curd Rs 240.00 Rs 250.00 10.00

Jam Rs 235.00 Rs 225.00 10.00

Potato Rs 235.00 Rs 165.00 130.00

Soap Rs 225.00 Rs 235.00 10.00

Talk Rs 225.00 ----------------

Butter Rs 190.00 Rs 200.00 10.00

Tea Leaf Rs 176.00 Rs 195.00 19.00

Soya Meet Rs 167.00 Rs 167.00

80 pages books Rs 140.00 Rs 155.00 15.00

Coffee Rs 130.00 Rs 130.00

Tooth paste Rs 130.00 Rs 120.00 10.00

Eggs Rs 120.00 Rs 120.00

Shoe Polish Rs 120.00 Rs 120.00

Stationeries Rs 110.00 Rs 120.00 10.00

Bam Rs 80.00 ------------

Incense sticks Rs 70.00 Rs 80.00 10.00


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42

Bulb Rs 65.00

Flour Rs 60.00 --------------

Battery Rs 54.00

Pen Rs 45.00

Box of Matches Rs 20.00

Penadol Rs 12.00

The amounts of particular items that we purchased are same in both March &September It states that we did not change our life in order to do the project. Most

of the items were reduced with their expenditure in May by comparing to March

but the amount that we purchase in the month remained same in both March &

May. That emphasizes that I did not violate the 3rd

natural law & the project is not

affected to the quality of life.

The expenditure of most of the vital few items was reduced in high numbers otherthan Gas & Petrol. Gas price was increased by 229.00 with the government

decisions on gas price adjustments. But I successfully expand the usage of Gas

cylinder from 24 Days to 32 Days. (see more in recommendations)

Other than the vital few items the expenditure of the other items were alsoreduced in a reasonable number. (see more in recommendations)

The Changes of Expenditure of the vital few items

I identified 13 vital items in the March expenditure & I used many strategies in order to

reduce the expenditure in May without affecting the quality of life.

The 13 vital items that had been identified by using the Pareto law in the March

Expenditure are,

1. Dinum- Pocket Money2. Petrol for the Motor Bike3. Pathum-Pocket Money


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43

4. Reload5. Rice6. Vegetables7. Milk Powder8. Gas9. Coconut oil10.Short eats11.Fish12.Coconut13.Electricity

Dinum- Pocket Money/ Pathum-Pocket MoneyThe pocket money is an essential monitory need and cannot reduce that if it is happen it

may affect the quality of life.

Anyway I managed to save a better number of my pocket money without affecting to thequality of my life. (See more in recommendations)


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44

Petrol for the Motor Bike

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Dinum- pocket money Pathum pocket money

March

May

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Dinum- pocket money Pathum pocket money

March

May




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45

The amount of petrol usage for the motor bike is moderately same in both

two months.

ReloadWe did not have a fix telephone line & Mother, Father & I use hand phones for our long

distance communication purposes. The reduction of that basic need in the modern society

is affecting directly to the Quality of life. So I had to maintain the expenditure of Reloads

in the same level.

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Reload

March

May

0

1000

2000

3000

4000

5000

6000

petrol

March

May

0

1000

2000

3000

4000

5000

6000

petrol

March

May




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46

RiceThe expenditure of the rice for March is Rs. 1885.00 & the expenditure for rice was

reduced up to Rs. 1530.00. In both months we consumed 23Kgs of Samba Rice.

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Reload

March

May

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Samba Rice ( 23 Kgs per month)

March

May




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47

VegetablesThe expenditure of the Vegetables for March is Rs. 1720.00 & the expenditure for the

May was Rs. 1510.00. In both months we consumed 11-12Kgs of vegetables.

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Samba Rice ( 23 Kgs per month)

March

May

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Vegetables (11-12 Kgs per month)

March

May




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Milk PowderWe consumed 7 milk packets for a month. We are using 450g Anchor Brand for the

fulfillment of our dairy needs.

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Vegetables (11-12 Kgs per month)

March

May

0

200

400

600

800

1000

1200

1400

1600

1800

March

May




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49

GasThe price of a gas cylinder was increased by Rs.229.00 with the government decision on

adjusting the price levels. The price of a gas cylinder in March was Rs. 1550.00 & it was

increased up to Rs.1779.00 in the May. But I increased the consumption of Gas from 24

days to 32 days. (See recommendations)

0

200

400

600

800

1000

1200

1400

1600

1800

March

May

0

200

400

600

8001000

1200

1400

1600

1800

2000

Gas Cylinder

MarchMay




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Coconut oilWe normally consumed 8.5 Bottles of coconut oils per month. The March expenditure for

the Coconut oil was Rs.1503.00 & the May expenditure was reduced up to Rs. 1304.00.

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Gas Cylinder

March

May

0

200

400

600

800

1000

1200

1400

1600

8.5 bottles of Coconut oil

March

May




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51

Short EatsThe expenditure of the March was Rs. 1460.00 & reduced in May up to 520.00.

0

200

400

600

800

1000

1200

1400

1600

8.5 bottles of Coconut oil

March

May

0

200

400

600

800

1000

1200

1400

1600

Short Eats

March

May




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FishIn both March & May we consumed 4.5Kg of Fish & in March the expenditure was Rs.

1310.00 & the expenditure in Mar was 1080.00

0

200

400

600

800

1000

1200

1400

1600

Short Eats

March

May

0

200

400

600

800

1000

1200

1400

Fish (405 Kgs per month)

March

May




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CoconutWe use 29 to 30 coconuts per a month & the expenditure for the March was 1015.00 &

The May expenditure was 928.00.

0

200

400

600

800

1000

1200

1400

Fish (405 Kgs per month)

March

May

0

200

400

600

800

1000

1200

Coconuts (29-30 per month)

March

May




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ElectricityThe electricity bill in the March was Rs. 962.00 & the May Electricity bill was reduced

up to Rs. 591.00

0

200

400

600

800

1000

1200

Coconuts (29-30 per month)

March

May



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55

The main conclusion

Reduced the monthly household expenditure by 11.33% by using the Pareto law without

affecting to the quality of life

The objective of the project was to reduce the household expenditure by 20% by using

the Pareto law without affecting to the quality of life. But the reduction of expenditure is

limited to 11.33%. The main reason for happen like this that I had to control the

expenditure without affecting anything to the quality of life

0

200

400

600

800

1000

1200

Electricity

March

May

0

200

400

600

800

1000

1200

Electricity

March

May



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Recommendations

This chapter is all about an explanation of strategies that I used to reduce the household

expenditure in the month May. I used different strategies for different item in order to

reduce the unnecessary cost involve with the consumption based items.

Recommendations to reduce the Electricity Bill


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Use CFL Bulbs for lighting purposesThe CFL bulbs can save 35%-45% of energy during its operation time. The life time of a

CFL bulb is very much greater than the ordinary filament bulbs. At my home I remove all

the ordinary bulbs & used CFL bulbs for the lighting purposes.

Use an Asbestos sheet to put the iron when it is on.By keeping the electric iron on an asbestos sheet the heat emission from the iron will

reduce in a great number. It will save lot of energy while the iron is working.

Iron the clothes at ones sufficient for a long period (for a week)The nickrome coil of the electric iron needs lot of electric energy & when ironing clothes

day by day there will be lot of energy waste can be happen. I educated the family

members & then they themselves practiced to iron clothes at once which lead for saving

energy.

Change the operating system of the computerThe operating system of my computer is Windows Vista starter which normally

consumes more electrical energy to operate. It is also a failure. Windows Seven is the

newest operating system in the world & it is better than Windows Vista. It takes a lesser

amount of electrical energy to operate. So I changed the operating system from Vista to

Windows Seven that increased the performances of the computer while saving lot of

energy when it operates.

Reduce the number of times of opening the refrigerator.When the refrigerator is opened & after the classing it takes extra energy to refresh the

cooling system. So I asked my family members to reduce the number of times of opening

the refrigerator especially in the cocking.

Practice to switch off all the bulbs & other electric equipments when they are notneeded.


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I & my family members practiced to switch off bulbs, fans, TV & etc when they are not

needed.

We as a family practice all the above mentioned strategies in order to reduce the monthly

electricity expenditure & we did it practically by reducing 38.5% of the electricity

expenditure by comparing to the March.

Recommendations to reduce the expenditure involves in the FastMoving Consumer Goods

Buy goods sufficient for a month from Whole sellersWe regularly buy FMCG goods from the retailers. But we can buy FMCGs from whole

sellers with 10% to 25% reducing off the retail price with a better quality than buying

from the retailers.

We followed the above mentioned strategy & the result was reducing the expenditure

involves with the FMCG goods by 15% to 20% of the May expenditure.

The other thing is that when we buy the FMCGs in large quantities they give discountsfor the purchases. The bulk buying is also help to reduce the opportunity cost involve

with the purchases such as transport, time & etc.

Recommendations to reduce the expenditure involves in purchasingFish & Vegetables.

Buy fish & vegetables from Economic Centers.Near to our home town, there is an Economic Center which is having very low range of

Fish prices & Vegetable prices. We bought all the vegetables & fish from that place &


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that helped us to reduce the expenditure involves with fish & vegetables by 8.5% by

comparing to the March expenditure.

Buy fish & vegetables sufficient for a week.By doing this, we received discounts for the purchases and we reduced the opportunity

cost involves with the purchases.

Recommendations to increase the usage time of the Gas cylinder Maintain the full burn situation in the gas cooker when cooking

This will help to burn gas effectively in order to cook the stuff in a lesser time. It helps to

save the gas as well.

Maintain a continuous cooking period in order to save the gas.Prepare all the cooking stuff before switch on the cooker and then cook the stuff one by

one continuously. Those strategies helped us to save the gas & extend the usage of gas

cylinder from 24 days to 32 days.

Recommendations to reduce the expenditure involves in the shorteats.

We normally buy short eats from a vendor who came to our door step. But theprice is in a high position in order to cover his expenditure. We decided to buyshort eats from a bakery which the quality is high & the price is less. But the main

reason for reducing the expenditure involves in the short eats that my mother

prepare short eats herself which is better than anything.


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Appendix

Attached,

Note Book Bill Book Data Collection CR book

To the project to prove the validity & reliability of the project.

hd cpd assignment

Documents