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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM68260
Volume:
10 |
10 |
Oct 2026
Pages:
1-6
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Master of Business Administration
Indira University - School of Business
The most important element of budgetary control in large manufacturing plants is to break down the annual financial goals into month-by-month operating disciplines. Although a plant's monthly budget position is readily apparent, little is known whether this variance varies systematically by functional head used to spend the plant's money, such as facilities, human resources, administration, commercial activity, security/legal/compliance and other miscellaneous heads. Primary data on operating cost heads for each month has been used in this study for Commercial Vehicle Business Unit (CVBU) Pune plant of Tata Motors Limited to answer this question from the on the job training placement in Plant Finance department. Variances were calculated for each cost head separately in absolute terms and percentages, both favourable and adverse, and then logical functional categories. One-way ANOVA was used to determine if there was a difference in mean percentage variance between the six functional categories. The plant posted a net favourable variance of ₹1.14 crore for the month with a planned expenditure of ₹210.45 crore (0.54% under budget). There were 27 cost heads (excluding zero plan values) of which 14 were unfavourable, 9 were favourable and 4 were in line after rounding. The results of one-way ANOVA showed that there was no significant difference between the mean percentage variance across the six functional categories, F(5, 21) = 0.77, p > .05, indicating that the overall positive effect of the plant was not due to any particular functional category. The results indicate that budgets are not managed on a category basis at CVBU Pune, but are balanced at a plant level with cross-functional balancing, where savings in maintenance are counterbalanced by seasonal, HR and compliance-related overspending.
KEYWORDS
In this study, the authors investigated whether or not a budget variance, which was favourable for the net income of a commercial vehicle manufacturing plant, was generally experienced throughout the company or in particular functional groups. The analysis conducted using primary cost-head data from CVBU Pune, Tata Motors, indicated that the plant closed with a net favourable variance of ₹1.14 crore (0.54% under budget) in general, which was mostly on account of savings in one cost-head – Repair, Renovation & Upkeep – and not uniformly across all functional cost-heads. There was no statistically significant difference in mean percentage variance between the six functional categories that were studied (one-way ANOVA). This study indicates that plant-level budgetary control should be worked out at the cost-head level, not just based on the net monthly figure, and that preventive-maintenance driven savings can be maintained and recurring seasonal and compliance overruns investigated in a standardised manner; this provides a practical approach to becoming more resilient with budgetary control.
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Publication Date
10/24/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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