Management Control System
Designing Management Control System (MCS)
In the contemporary world, most companies apply the use of energy to plan, manage, and execute their operations in accordance with the demands of the market and the industry. This makes energy the most vital aspect of production in business entities. Energy is crucial in running machines, recording of information, execution of communication activities, and provision of lighting within the context of the company. Since energy is essential to plan, managing, and execution of roles within the company, it is ideal for the company to decide on how to minimize consumption of energy footprint in the process of production. This is important because the company needs to cut down the overall cost of production to enhance the profit and revenue levels at the end of the financial year. This makes it critical for UTS to develop management control system with the aim of reducing its energy footprint in Building 3. This Management Control System (MCS) would enable UTS to cut down the cost of production by adopting effective and efficient application of energy system.
Objective
The main aim of this management control system (MCS) is to reduce the cost of energy footprint of UTS in Building 3. The Management Control System would also allow the entity to adopt cost-effective energy application in execution of roles and responsibilities in accordance with the demands of the market and the industry. The new design of MCS would be friendly to the environment thus conservation to the scarce natural resources. This represents development of a planet that would foster survival of the human race of the next generation. It is ideal for the company to adopt cheaper energy measures thus reducing the overall cost of production. In the long-run, the entity would be able to maximize its profits and revenues thus growth and development of the organization. This management control system would focus on educating employees of the UTS and other close partners of the organization on how to minimize consumption of energy and the consequential benefits.
Management Control System to enable UTS Reduce the Energy Footprint in Building 3
Establishing Energy Baseline
UTS must first develop the energy baseline in order to determine what to change in relation to future efficiency measure. The energy baseline of the entity reflects the current level of energy under consumption during the process of production (Australian Government, 2012). It is critical to develop the energy baseline of the company (UTS) in order to offer accurate comparison when implementing energy saving method. Energy baseline draws from reliable and valid data that can undergo critical analysis. UTS can adopt Regression Analysis or Modeling methodologies in the process of designing the energy baseline. In relation to this context, the company needs to develop energy baseline of building 3 in order to adopt effective and efficient energy saving approach. The development of energy baseline would occur in the form of energy efficiency opportunities program. UTS should capture all the two years of energy data for all the energy sources in relation to building 3. The company needs to identify processes that contribute to the baseline and their relative boundaries. UTS would use the historical data of energy consumption in order to determine independent variables influencing energy footprint (Kitamura et al., 2009).
This is appropriate for utilization of the regression analysis methodology of developing energy baseline (Australian Government, 2012). In the development of energy baseline, the entity (UTS) should include both variable and fixed factors affecting the development of energy baseline. One of the factors that affect development of energy baseline is the ambient conditions. This is the reflection of temperature in the course of production. The other crucial factors that might influence the composition of energy baseline include energy consumption rates, raw materials, product mix, production rates, and occupancy. Identification of factors affecting energy baseline at UTS in the building 3 would allow the entity to come up with appropriate measures at the operational level to improve efficiency while reducing the cost. The first attempt of reducing the cost of energy footprint is to increase production levels. This would allow UTS to spread the energy costs across numerous activities thus reducing the cost of production within this sector. The company needs to identify fixed and variable factors or energy applications. For instance, the energy that goes into lighting classifies as the fixed cost or fixed usage of energy (Kitamura et al., 2009).
Energy that goes into running of production and other activities within the building is variable energy usage. Since energy application within the building depends...
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