Feature Story
MPG working with Councils to maximise plant operation performance.
Over its 14 years of operation the Mead Perry Group has assisted numerous Councils to improve the performance of their plant operations. Generally a comprehensive plant operation review will include the review and analysis of information available in Council’s General Ledger, Plant and Job Costing systems and the interviewing of Council staff in order to identify issues which may affect Council’s capacity to operate a profitable and sustainable plant operation. The report is designed to assist in the making of informed strategic decisions about the management and operation of its plant activity.
Senior MPG consultant Mr Scott Mead told us that “for many Councils their plant operation presents it with its best opportunity to generate revenue from sources other than its ratepayers and is likely to be an area in which efficiencies can be improved over time.†He said that “particularly when conducting externally funded / contract works, the more effectively the plant operation performs, the more profit is available to Council to utilise in other activities or for the development of community infrastructureâ€.
“We at MPG believe that in carrying out a review of this nature, Council and Management are demonstrating good management practice and a willingness to continually improve performance to the benefit of the residents of the Council area†Mr Mead said.
In discussing the detailed analysis of plant operations data, MPG Senior consultant Mr John Perry pointed out that the use of custom designed modelling tools allowed MPG to provide Council and Management with the information required to make informed decisions in relation to its plant operation.
He pointed out that “our reviews are conducted to provide Council with an independent analysis and assessment of all aspects of its plant operationâ€.
In addition he said that “the reports make recommendations on a range of matters which, if adopted and implemented, are expected to immediately improve the recording, manageability and accuracy of costs associated with plantâ€.
Mr Perry also pointed out that plant operations reform must be followed by the regular monitoring of the plant operation’s performance and at least an annual review of plant performance and hire rates.
As part of our aim to assist Councils maintain best practice governance generally, the MPG team believe that in terms of enhancing the sustainability of its plant activity, it is important that Council adjusts its pricing in line with cost increases and regularly review costs, overheads and plant hire rates. Accurate rates will reflect the real cost of plant operations and therefore the costs charged to jobs will be more accurate. Importantly, Council will be aware of what the full costs of its activities are so that it can make informed decisions about its operation in the future.
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