OVERVIEW
Cost controlling is a value adding techniques. The role of cost controlling is an important skillset in today’s volatile business environment. In the leadership role, there is a need for all functional or business heads to prudently manage, ascertain and implement cost saving and reduction strategies, especially during tough business times.
Businesses that don’t control their costs will have difficulty in managing cash flow. Is everyone in your organisation sufficiently aware of costs, managing them effectively and maximising opportunities to reduce them? If there is scope for improvement, this course will help get you back on track. It will demonstrate that cost reduction is so much more than cost control and cost cutting. True cost management is about being aware of costs, seeking to reduce them through good design and efficient operating practices whilst taking continuing action on overspending.
LEARNING OBJECTIVE
On completion of the programme, participants will be able to: –
- Develop a deeper understanding of cost control principles and practices
- Identify cost saving opportunities and alternatives without compromising quality or productivity
- Learn tools and techniques for budgeting, monitoring and reducing operational cost
- Enhance decision-making skills in financial planning and expenditure management
- Foster a culture of financial accountability and cost-consciousness
WHO SHOULD ATTEND
Managers, Professionals, Senior & Junior Executives who had profit center and cost center responsibilities ensuring effective cost controlling, reduction and savings in their organisations. This can be extended all levels of employees who assist and implement cost saving and reduction strategies.
TRAINING APPROACH
Where appropriate, training learning activites will include the following:
- Interactive Lectures & Videos
- Faciliated Group Discussions & Quiz
- Practical exercises and case studies.
COURSE OUTLINE
The key content of the program includes the following:
Module 1: Introduction – the cost controlling process
- The benefits of cost control
- The risks of poor cost control
- Capital and revenue costs
- The importance of cost awareness
- The importance of cost reduction
- Cost management – the key aspects
- How to build a cost management and control process checklist for your areas of responsibility
Module 2: Cost removal – taking out costs
- Cost awareness
- Costs of poor design / poor processes
- Value engineering
- Removing redundant costs
- Cost reduction culture
- The need for cost reports
- What measures can be used to identify over-spends as early as possible
- Cost control performance measures and ratios.
Module 3: Understand the sources of value creation as key strategy in any cost saving initiatives
Understand value generation and value destroying activities
Identify firm’s cost drivers for cost reduction.
Understand nature and behaviour of costs – fixed, variable and semi variable cost, direct and indirect costs in company’s operations.
Module 4: Cost Management tracking tool: Variance Analysis tool
- Understanding essentials of variance analysis & how variances are calculated in cost management
- What causes cost variances?
Module 5: Cost reduction process impact to the profitability
Understanding of cost
- Cost element classification
- Value Costing
- Costing methods and structure for quick decision making
- Identify firm’s cost drivers in Activity Based Costing (ABC)
- Application to cost reduction strategies
Module 6: Application of cost controlling techniques
Group work: Propose Real life value reengineering, cost savings, controlling and monitoring based on bottoms up budgeting and forecast
