The budgeting conundrum

October 15, 2024

The Budgeting Conundrum

It is that time of the year--the time when you are putting the finishing touches on your capital requests for next year.

You have put together a reasonable budget by carefully seeking quotations on major components and carefully estimated the smaller items and labor.

You are ready to run it up the chain of command.

In five days, it comes back with the comment, "You have got to cut 10% or we will not be able to get it approved."

You ask the operating department destined to receive the benefits of this project, "What can I descope here?

"Nothing--we need it all."

Unless you plan on resigning before the project starts, it is time to stand your ground.

For if you just cut 10%, the project is going to end up a disaster and you may be fired.

Take your medicine now. If you have the clout to call a meeting of the budget approvers and operations, do that. If you don't you'll have to track back and forth between the two groups until there is a meeting of the minds.

Whatever you do, don't think the problem will solve itself later. Later is when you will be blamed.

Want a deeper diver? Go here.

What is your opinion? Drop me a line at jim.thompson@ipulpmedia.com. I would like to hear from you.

And further by the way, I come to mills and talk to various departments about many subjects. To arrange my custom visit to your mill, just email me at jim.thompson@ipulpmedia.com or call me at 678-206-6010.

Young Engineering Manager of the Year, call for nominations

We are looking for an individual who has done an extraordinary project, one that almost defies belief. Its extraordinary features can be schedule, technology, cost or all three. There is an age limit on the manager eligible for this award: they must be under 35 years old when they completed the project.

We have often gotten nominees that go something like this, "I nominate Joe because he has done a great job of running our engineering department for the last fifteen years." Quite frankly, we are not interested in such nominees.

However, if you know someone who has led a very exceptional project in the recent past (the last two or three years) and meets our age requirement, we want to know about it. We want to honor them and hold them up as an example for Engineering Managers in every pulp and paper mill around the world.

Just send your nomination, with as much details as you can provide, to jim.thompson@ipulpmedia.com. We will seriously consider it.

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