Budget Time: Stretching the truth
Budget Time: Stretching the truth
(OP)
Well, time to do next year's budget for projects.
There are 5 plants total, fighting for the largest piece of pie they can get. A part of this is a review of each plant's DCS system.
Each plant has a Process Control System and each is performing a life-cycle analysis of best time to replace, based on cost, loss of production, and frequency of failures. All are using the same tool, however, the base numbers, such as new system cost (usually estimated $/point), cost of production loss, etc...can change.
I reviewed the analysis tool with another plant who had already completed the analysis. I feel the numbers used were greatly exaggerated and thus, the analysis indicated a change in DCS was necessary much sooner.
Asking the engineer about this, the reply was, "well, we discussed this as a team and really feel they are the best numbers. Plus, when we talked to plant X, their numbers were even higher than ours."
Their new equipment estimates($/point) are 50% more than mine (I have 10 yrs experience in this, and my estimates were within 5-10% actual). Their loss of production number is based on full capacity (but they are only running 50%). And the MTTR for a DCS is 6 months (granted, they assumed worst case - but their fix for worse case was to install a new DCS, not find parts for existing).
I'm really struggling with this. They aren't helping the company any, only themselves (by giving them projects).
If I use 'true' numbers, I don't get project funding because the analysis indicates I can live longer with what I have. If I use 'their' numbers, I'm no better than they.
Talked with my manager about these concerns, the answer was, "they might be able to do that once, but they won't get away with it."
Ya, right. What are the repercussions? Nothing.
Guidance in the next step would help.
There are 5 plants total, fighting for the largest piece of pie they can get. A part of this is a review of each plant's DCS system.
Each plant has a Process Control System and each is performing a life-cycle analysis of best time to replace, based on cost, loss of production, and frequency of failures. All are using the same tool, however, the base numbers, such as new system cost (usually estimated $/point), cost of production loss, etc...can change.
I reviewed the analysis tool with another plant who had already completed the analysis. I feel the numbers used were greatly exaggerated and thus, the analysis indicated a change in DCS was necessary much sooner.
Asking the engineer about this, the reply was, "well, we discussed this as a team and really feel they are the best numbers. Plus, when we talked to plant X, their numbers were even higher than ours."
Their new equipment estimates($/point) are 50% more than mine (I have 10 yrs experience in this, and my estimates were within 5-10% actual). Their loss of production number is based on full capacity (but they are only running 50%). And the MTTR for a DCS is 6 months (granted, they assumed worst case - but their fix for worse case was to install a new DCS, not find parts for existing).
I'm really struggling with this. They aren't helping the company any, only themselves (by giving them projects).
If I use 'true' numbers, I don't get project funding because the analysis indicates I can live longer with what I have. If I use 'their' numbers, I'm no better than they.
Talked with my manager about these concerns, the answer was, "they might be able to do that once, but they won't get away with it."
Ya, right. What are the repercussions? Nothing.
Guidance in the next step would help.
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RE: Budget Time: Stretching the truth
Budgeting Sucks. Budgeting games suck more. The winner sucks the most.
David
RE: Budget Time: Stretching the truth
Dan - Owner

http://www.Hi-TecDesigns.com
RE: Budget Time: Stretching the truth
RE: Budget Time: Stretching the truth
Not just getting a budget to spend but spending it.
Having inflated the budget request, sometimes simply because whatever is asked for will be hacked back, and received a budget that is either over ambitious or less than enough to start some project or other, come end of the year all sorts of stupid expenditures are made "to use up the budget" otherwise next years budget will be slashed.
The same nonsense often applies to forecasts of performance because sales will know never to forecast poor sales because that just results in grief.
So you have an overinflated budget based on overly confident (nonsense) sales projections.
Then sales start to slip and salesmen are hauled off the road so they can have lots more meetings about why they aren't selling and then they spend more time producing short term (end of the month) forecasts.
Then budgets get slashed and before you know it, people are being laid off.
I think this is all based on management autonomic reflex actions.
JMW
www.ViscoAnalyser.com
RE: Budget Time: Stretching the truth
Mike Halloran
Pembroke Pines, FL, USA
RE: Budget Time: Stretching the truth
End result, throw out the old and in with the new.
RE: Budget Time: Stretching the truth
Well, that's a fast way to find out how much the organisation values your opinions. Make sure you have another job lined up before you press send.
Cheers
Greg Locock
SIG:Please see FAQ731-376: Eng-Tips.com Forum Policies for tips on how to make the best use of Eng-Tips.
RE: Budget Time: Stretching the truth