Big Data Analytics Flashcards
What can big data analytics do for halfpenny?
Significantly enhance the accuracy and efficiency of labour cost budgeting
How can big data analytics help the accuracy of labour cost budgeting?
Identifying patterns and trends (employee productivity, working hours)
Optimising staff levels (can reveal overstaffing or understaffing)
Forecasting demand (can adjust staffing levels or hire temporary staff if needed)
Skill gap analysis (identifying future skill requirements so Halfpenny can budget for training existing staff)
How does big data analytics support the control of labour costs?
Monitoring productivity (systems for real-time productivity monitoring enables halfpenny to make immediate adjustments in task allocation or identify urgent training needs
Adjusting to real-time demand (provide insight into sudden shift in demand)
Limitations of using externally generated information for budgeting purposes
Accuracy & reliability (info from market research or competitor analysis may be less accurate and reliable than internally generated data)
Relevance and timeliness (may not perfectly align with Halfpenny’s specific needs or might be outdated)
Practical challenges (external info can present challenges, such as accessing proprietary data or dealing with uncooperative third parties)
What is feedforward control?
End of each budget, we calculate and review the variances between what we expected to happen and what actually happened.
Another meaning for feedforward control?
Pro-active approach to budgetary control, comparing current expectations with a forecast of what is likely to happen based on the latest information.
What is feedback control?
Reviewing the variances after the budget period has ended.
Benefits of using feedforward control
Allows for quicker identification and response to potential issues
Better cost control
Foreseeing constraints by monitoring sales and production
Improve cash forecasting, able to manage working capital better
How can Halfpenny use budget control?
If they anticipate a surge in demand for a bread product due to a holiday or promotion, they can proactively adjust schedules (order more materials, allocate labour hours)
