Study an Efficient Budgeting System: Case Study Construction Machinery Manufacturing Company in Rayong Province

Abstract

This article aimed to study (1) Problems and obstacle in implementing the budget system for administration; and (2) Suggestions and guidelines for solving and preventing problems arising from the use of budget in the administration for effective management. The sample was employees of a construction machinery manufacturing company in Rayong Province. They were selected by their involved in the budget system both budgeting approving budgets and implementing budgets which consists of operational level, supervisor level and manager level total 17 employees. The instrument for collecting data was a structured interview with open-ended interview questions, which is a research methodology that is flexible and open-minded in answering research questions, analysis data by Descriptive statistics and Content Analysis. The result of the study found that 1) problems arise during the budgeting process that takes a lot of time, lack of sufficient information to make budget and do not have sufficient expertise and experience in budgeting effectively, problems arising in the budget management by actual spending exceeds the set budget, actual spending incurred later than the planned, uncertainty in production and external factors causing to cannot be used budget as planned. 2) Summary of guidelines for solving and preventing problems arising from the use of budget in management are a) making an accurate plan and budget b) use actual expenditures in the past as a guideline for budgeting c) continuous monitoring of budget usage and reporting results. Adjust the budget plan quarterly, and d) analyze the actual performance against the budget targeted to find ways to improve in the future.