parta developing a quick performence monitoring tool
TERM PAPER PARTA DEVELOPING A QUICK PERFORMANCE MONITORING TOOL FOR A PIPELINE LINE INFRASTRUCTURE PROJECT Submitted By Name : KAILASH SHARMA Address : 610, Damji Shamji Trade Centre, Vidyavihar (W), Mumbai-400 086 DBA Reg No. ... org ABSTRACT Often the projects fail or organizations suffer due to non-availability of simple, trustworthy, quick performance monitoring tool specially the Profit / loss on daily basis. ‘PARTA’ synonyms with BIRLA’s Financial monitoring style, is one such tool, which has been developed here for a pipeline infrastructure projects. In PARTA cost components are broken down on daily basis, compared with a realistic set norms (mostly based on past actual averages or some other authentic base) give a Profit / Loss on days or to date basis. The beauty of ‘PARTA’ is that it can even be used by non-financial executives, gives fairly accurate results within time and resource constraints and can keep the ‘CEO’ always on toes for higher productivity achievements. INTRODUCTION: Quite often Promoters / Managers are at a loss as to how quickly, and steadily monitor the performance of their Organization on daily basis, through a simple, fairly accurate and trusted tool even without putting complicated IT net-work. One such quick and reliable performance monitoring tool is PARTA, having successfully used by BIRLAS and other business communities of Rajasthan. The objective of this Paper is to understand what PARTA is, how to develop and implement it in any organization and thereby analyze the daily Profit / Loss. ... In fact PARTA, is a dynamic tool for integrated performance monitoring, as it is developed through a joint exercise of Sales, Purchase, Stores, Marketing, Manufacturing and other functional areas. It is not a pure financial tool as it is generally understood. It gives a deep insight into the organization, keep the CEO always on toes (of course with ample freedom to show results) and finest part of PARTA is that it is Profit & Loss on day to day basis. ... Basic Concept of PARTA: Conceptually, PARTA signifies ‘Parameters of Performance’ and indicate the variances in various cost components and organizational performance. ... In a way it is simplified form of complicated cost monitoring and control systems. ... Let us briefly navigate through some of these concepts of the above functional areas and components attached to them and see how these are woven into PARTA making. ... Let us briefly look into various cost systems related to our PARTA development: Standard Cost System maybe defined as the comparison of actual costs with predetermined standards for the purpose of developing variances. ... In Master PARTA, all the above cost measurement building blocks are interwoven in a different but modified way. Like standard costs norms are prepared using past actual averages, and variance is computed on regular daily / cumulative basis on selected cost components, While preparing Master PARTA activities areas are identified, detailed out and based on that, cost components are worked out in details, to arrive at past actual averages cost to that activity (cost component) Since the cost components are broken down to activities, parameters are fixed on actual past averages (and also are revised time to time whenever there are major change in activity or in- puts). ... As such, PARTA can be more dynamic than standard costing system and variance analysis but will contain lesser details than what are available through ABC but at the same time less complex to calculate than ABC systems METHODOLOGY: How PARTA is prepared and Performance is monitored Following steps will make the PARTA development and performance monitoring easily understandable. ... Step: 2 (Developing ‘PARTA’ norms or Master PARTA) 4 Develop a ‘Master PARTA’ or ‘PARTA norms’ based on the interaction of various Departments which are responsible for contributing to the final cost of sales (from first entry of input to final realization of sales). 5 Break up PARTA (norms) to cost / unit of product mix.