Page 136 - Budgeting for Managers

Preparing for Presentation
would be good to organize the presentation of the value of IT to
match the parts of Robert’s budget. They come up with these
four main points.
•Keep the computers running! 119
•Everyone who needs a computer gets a computer!
• Save money through inventory control.
•Use efficient cost management.
Svetlana’s presentation focuses on the value of each of
these items, talking about effectiveness, synergy, and reduction
of inventory losses. Robert prepares this outline for the talk he’ll
give with his 10-minute slideshow presentation of the budget
and costs:
Keep the computers running!
• For only $30,000, we replace 20 old computers that are
becoming unreliable. This routine replacement program
reduces maintenance cost and downtime, increasing
productivity.
• For only $6,000, we maintain an inventory of spare
parts that allows for quick exchanges of failed equip-
ment. This reduces lost work time.
• The annual maintenance program, costing a total of
$42,125, is in its fourth year of operation. Costs per
employee are going down each year because reliable,
standardized computers are replacing the unreliable
computers we used to have. With 180 employees using
computers, the cost is only $234 per person.
Everyone who needs a computer gets a computer!
• HR checks with each department when a position opens
to determine if using a computer is a job requirement. If
so, they include that in the job description, include skill
tests in the interview process, include computer training
in orientation, and inform Robert that a new computer
will be needed.
• Robert checks with HR to get the figure. This year, 10
new employees will get computers for a total cost of