To HPC/Engineering leadership team,
Naree and I presented our financial forecast with inputs of the savings you identified. In summary after taking your savings it gave a full year revised forecast of 61.6CPT vs a target we agreed of 56CPT at the beginning of the year. Fair to say it's a disappointing position to be in and volume loss is only a small part to it. It was a tough meeting for us!
1. Excessive labour costs
2. Excessive trade waste
3. Excessive utility costs
The above just some of the major items that are in your control that we need to overcome at once. The position we have end up on is we will target and hit 60CPT meaning we need to find another 40MB out of WWTP and all HPC cost centres which is absolutely achievable with focus.
We will also now hold monthly financial reviews with john and team to update progress so very important we drive all areas in our control down. Given volume has dropped the team is also expecting we target 0 OT and when we have it I will need to explain why in future.
Lastly, I have been able to get the EOL automation approved for HPC for the whole $2.5 mE which will give FTE and subcontractor benefits however the team rightfully want to understand can we use manual labour and bring this activity in house sooner and save on the subcontracting charges? Khun Charoen can you help me understand if this is possible??
I will ask also Vee to help bring us together to review but please please do take this very seriously and we need to drive more benefit as our costs are even higher then last year and we are so far off budget in areas that we control it ha many people questioning what's going on?
Regards
Jiah