Cost Identification, Analysis and Control Methodolgy

Mead Perry Group are regularly engaged to undertake Plant Operations and Oncost Reviews for Councils.
Mead Perry Group undertake a thorough review of all elements of the plant operations of Council and on-cost rates, to report on the findings and make any necessary recommendations, thus allowing management to make informed decisions on issues such a human resource management, utilisation rates of plant classes across the organisation, hire rates and overhead charging and will ensure that its operation is cost effective, its contract works are competitive and profitable and that the business activity is delivering a positive return to the community.
This process requires that Mead Perry Group, in consultation with relevant staff and utilising reports and data from each Council’s computer system:
  • Review the performance, utilisation and profitability of Council plant and operations;
  • Review management and human resource practices in the plant operations area;
  • Review the allocation of plant related costs:
    • Operating costs, including maintenance;
    • Workshop overhead allocation;
    • Depreciation expense; and
    • Return on capital.
  • Review Council on-cost rates (incl. plant and wages);
  • Review plant asset register;
  • Calculate “full cost” plant hire rates and on-costs; and
  • Report on and recommend necessary alternative rates, procedures, policies etc.


Mead Perry Group methodologies ensure that the bulk of this project be undertaken on site allowing for direct consultation with relevant officers and for the collection and analysis of data. The key issues identified are then addressed with relevant staff at the time and training provided on the implementation, future review and maintenance of any adopted reforms.  Any further research, data analysis and draft report preparation is carried out in the Mead Perry Group offices.
A draft report is then forwarded to the Chief Executive Officer to confirm that data utilised and any assumptions made in the report are factual.  Once confirmed, the report and recommendations are finalised and forwarded to Council for consideration.