Cost-effectiveness

Assessment 2 – Written Assessment

Develop procedures to review resource allocation against business unit

objectives Make sure you include the following (10 marks each):

1 Cost-effectiveness

2 The process for resource planning

3 What model you will use to evaluate and measure the resultant resource

planning You will need to include tolerances that will trigger the

implementation of strategies for dealing with expenditure over budget

4 A process for comparing the forecasted budget to actual resource costs

according to organisational requirements, including strategies for dealing

with expenditure over budget

5 The result of the measurement be it unfavourable or favourable will need to

be predetermined in your set of parameters for the model chosen

REVIEW AND REPORT ON RESOURCE USAGE 41 Develop and implement procedures to review resource
allocation against business unit objectives P h Cost-effectiveness is a measure of how well an organisation uses its
resources to achieve its desired outcomes A first step in defining the measurement system is establishing a process for
resource planning [Addressed elsewhere] Evaluating and measuring the resultant resource planning would need a
model that can be used in defining your selected variables Measuring the actual resource cost compared to the standard budget for a given resource can be considered according to your organisational
requirements including cost and resource scheduling which may exceed the
standard budget The result of the measurement be it unfavourable or favourable will need to
be predetermined in your set of parameters for the model chosen EXAMPLE ONLY Resource Measure effectiveness Measurement
Assess against 1
2
3 Results 1
2 Additional Comments Actual costs
Identified shortfalls
Surpluses Favourable
Unfavourable

Measure effectiveness Monitoring is also keeping a close eye on how resources are being used and
comparing this with your planning EXAMPLE of key words or actions
P Corrective action altering activities, modifying the use of resources > Renegotiating the allocation of particular resources in response to
measurement b Consistency in product and service delivery > Products and services you are responsible for are meeting standards set in
the planning h Impact on the environment both organisational, planning and costs Improvements needed from this assessment b Legal requirements are being met relevant to physical resources, for
example health and safety and environmental legislation industry specific
legislation 7 Measure effectiveness h A measurable unit or set of units assigned to each evaluation objective, eg,
a planned resource P The data collected in your ‘measured units’ profile will allow for a
determination of the degree of achievement for that objective Iv Suggesting new methods of using available resources to improve the team’s
effectiveness and efficiency Things affecting effectiveness b Resource not suitable h Cost of poor quality from suppliers P Defective material or damaged