Remedies Regarding The Project Essay Example | Topics and Well Written Essays - 1000 words

Remedies Regarding The Project - Essay Example NMCI estimates the project at a fixed cost. They offer the contract at a fixed cost per performance (seats). They have an extremely strict performance rating system. This performance assessing system does not take into consideration the time wasted while switching between the various applications. NMCI gives a fixed cost estimate and intends to stick by it. This later proves problematic since there are other costs that arise while implementing the project. For instance, the number of computer applications is originally estimated as 3000 but these changes to 70000 (Calbreath).The project is allocated fewer resources than it is due. This makes delivering the targeted result within the desired time hard for EDS. The original budget estimates are not reviewed so as to update them, this lead to a situation where the contractor has no enough funds to sustain its subcontractors who react by withdrawing from the project, this adversely slows it down. After a period of slowed performance, the navy agrees to allocate more funds to the project to cater for the extra costs (Calbreath).NMCI underestimates the time frame of the project originally giving it five years. It sets rigid deadlines most of which are not met. This arises due to failure to consider any complications that arise while implementing the project in time. It, however, realizes that the intended targets cannot be achieved within the set period and extends the contract to ten years.The Navy has an expected level of satisfaction for all its users.

Accounting Synoptic Essay Example | Topics and Well Written Essays - 3000 words

Accounting Synoptic - Essay Example The criticisms of traditional budgets as identified are- Traditional budgets are often contradictory and rarely strategically focused. Traditional budgets are costly and time consuming. Traditional Budgets lack flexibility and responsiveness. As compared to the time taken to prepare a traditional budget, it adds little value. Traditional Budget concentrates on cost reduction and not on value creation. Traditional Budget often acts as a barrier to change. Traditional Budgets seem to strengthen vertical control and command. Traditional Budgets do not reflect the emerging network structures that organizations are adopting. Traditional Budgets encourage perverse behaviors and gamming. Traditional Budgets are based on guesswork and assumptions that are unsupported. Traditional Budgets make customers feel undervalued. Traditional Budgets are updated and developed too infrequently, usually annually. Traditional Budgets bring about departmental barriers inspite of encouraging knowledge shari ng. The criticisms laid by Beyond Budgeting Round Table are more applicable to non-profit organizations than profit organizations. It is said so because the objectives of non-profit organizations are not specific and often link to multiple activities which necessitates trade off. Non-profit organizations are dominated by professionals and thus are less accessible to control systems and measures. Non-profit organizations incur a huge amount of discretionary fixed cost and the relationship between outputs and inputs are difficult to specify which raises difficulty in ascertaining profit. Non-profit organizations with their rigid rules and guidelines face problems in adapting to the changing policies, regulations and measures.... The criticisms laid by Beyond Budgeting Round Table are more applicable to non-profit organizations than profit organizations. It is said so because the objectives of non-profit organizations are not specific and often link to multiple activities which necessitates trade off. Non-profit organizations are dominated by professionals and thus are less accessible to control systems and measures. Non-profit organizations incur a huge amount of discretionary fixed cost and the relationship between outputs and inputs are difficult to specify which raises difficulty in ascertaining profit. Non-profit organizations with their rigid rules and guidelines face problems in adapting to the changing policies, regulations and measures. Non-profit organizations use the concepts of traditional budgets to ascertain cost and reduction of cost of activities, but the members are very little concerned to the developments, improvements and benefits which the activities are pursuing or shall pursue. The stri ct governance under which non-profit organizations operate has made it static, inflexible, not responsive to the changing environment, not focused on the formulation of procedural strategic plans, has lead to increase in discretionary fixed cost and lacks vertical control and supervision. Thus the shortcomings of traditional budget have decreased the value of non-profit organization in the current scenario inspite of creation of value, which have in turn lead to decrease in its significance.