Sorting+Exercise+Solution_4522486915

Sorting Exercise Solution Line Item Item # Description Projected Expense % of Total 1 1999 General Laborers $165,328.80 17.59% 2 1011 Superintendent $146,585.64 15.59% 3 1012 Quality Control Manager $145,600.00 15.49% 4 1010 Project Manager $144,120.24 15.33% 5 1007 General Foreman $119,372.33 12.70% 6 1006 Project Engineer $78,728.44 8.37% 7 1998 Dumpsters $25,000.00 2.66% 8 1501 Field Office Trailer $13,050.00 1.39% 9 1617 Vehicle Allowance $13,000.00 1.38% 10 1601 Field Equipment $11,180.00 1.19% 11 1612 Vehicle Fuel $10,750.00 1.14% 12 1990 Small Tools $10,740.00 1.14% 13 1517 Temp Toilets $8,553.60 0.91% 14 1528 Office Supplies $6,000.00 0.64% 15 1602 Vehicle Depreciation $4,995.00 0.53% 16 1508 Temp Cell Phone $4,125.00 0.44% 17 1521 Safety Materials $4,000.00 0.43% 18 1509 Internet $3,900.00 0.41% 19 1533 Computer Maintenance (IT) $3,500.00 0.37% 20 1529 Copier $3,061.00 0.33% 21 1014 Postage/Deliver $3,000.00 0.32% 22 1521 Safety $3,000.00 0.32% 23 1503 Construction Fence $2,574.00 0.27% 24 1511 Temp Storage $2,250.00 0.24% 25 1614 Vehicle Maintenance $2,040.00 0.22% 26 1499 Clean Field Office $1,500.00 0.16% 27 1520 Dust Control/Weather Protection $1,500.00 0.16% 28 1526 Drinking Water $1,200.00 0.13% 29 1611 Equipment Fuel $900.00 0.10% 30 1527 First Aid Supplies $500.00 0.05% N/A N/A Total $940,054.05 N/A Instructor: These are the cost drivers. Instructor: Using stratified sampling, the non-cost drivers were placed into to "buckets". With only 30 line items total, we only created two buckets; blue and green. Instructor: Using stratified sampling, we randomly selected "Small Tools" from the blue bucket for in- depth analysis. Instructor: Using stratified sampling, we randomly selected "Dust Control/Weather Protection" from the green bucket for in- depth analysis. Real Life: The story behind this proposal is that the KO got wrapped around the axel over $1200 for Drinking Water. This is only 0.13% of all the cost. This is not the hill to die on. A peer KO jumped into the negotiation and redirected attention to the heavy hitting line items and realized a total pool reduction of over $200K.