NURS FPX 6216 – Assessment 4 Preparing and Managing a Capital Budget Prepared capital budget Assumptions, knowledge gap, and areas of uncertainty

NURS FPX 6216 – Assessment 4 Preparing and Managing a Capital Budget

Pros and cons of alternative perspectives

The pros of the lounge renovation process are it creates a sense of protection and care among nurses and health care professionals, which is essential in increasing job satisfaction and productivity (Nejati et al., 2018). Further, the lounge helps reduce stress among nurses as it includes a power nap room, game room, and other relaxing facilities (Nejati et al., 2016). Brief time-off from the work is essential in increasing throughput and reducing work-related burnout (Salmela et al., 2020). Restroom and serenity rooms were found to be beneficial in improving cognitive and psychomotor abilities (San Martin et al., 2020). The cons of the lounge renovation include disturbance during the renovation process (Siddiqui et al., 2015), unnecessary visits to the lounge room, the possibility of increased activities and increased stay in the lounge room (Nejati et al., 2018), and conflict between employees to use the same services (Siddiqui et al., 2015). 

The budget has included $50000 to cover contingency and indirect expenses, which makes the total minimum budget of $4,46,800. The plan is based on assumptions that the cost will not vary significantly, there will be no hazards, contingencies and indirect expenses do not cross the limit, and strict adherence to renovation deadline (Dal Mas et al., 2020). Availability of data related to the cost of renovation of nurses’ lounges in other health care facilities, and units would have aided in understanding the better budget analysis and acquisition. 

Process for calculating cost, cost control methods, and collaboration to calculate the cost

Cash flow analysis, cash flow budget, and capital budget processes were used to calculate the cost (Dal Mas et al., 2020). The cost included for each budget item was considered as a unit and current market cost was considered. For example, cost 6 chairs were considered as a unit and the total cost was calculated per unit. Cost controlling methods used were supply chain consolidation, purchasing from primary sources by collaborating with them and stakeholders (Ageron et al., 2018), cost and benefit-based decision-making, appraisal of the predetermined target, performance-based wages for construction, project change control, and tracking the outcome (Oyegoke et al., 2021).