COURSE OVERVIEW

The Cost Management workshop shows how to stay competitive by paring away nonessential costs. The program aims to examine the cost structure of a business in order to better understand which costs must be incurred and which can be reduced. A range of specific cost reduction tips are covered in all areas of a business, including compensation, sales, production, procurement, and administration. There are extensive discussions of asset reduction techniques, as well as cost management reports and measurements. This course is the essential toolkit for anyone who is serious about managing costs.

This course is designed using a layman language to facilitate better understanding of the concepts. Presentations, activities and case studies are designed in view of non-finance background of participants.

HOW WILL YOU BENEFIT:

At the end of this course, participants should be able to:

  • Understand the language associated with finance
  • Know how and when to use financial terms and analysis techniques
  • Read and assess company performance using financial statements
  • Recognize the link between organizational strategy and financial objectives
  • Use “the numbers” to your best advantage to make more informed decisions
  • Identify the techniques available for increasing the effectiveness of sales and marketing activities, and the side effects of using these methods.
  • Identify the cost reduction techniques that can be used to reduce the costs of production and maintenance operations, and the side effects of using these methods.
  • Cite the key procedural steps and forms needed to maintain a proper system of procurement.
  • State the range of methods available for the reduction of costs for accounting, human resources, legal services, and other areas of administration.
  • Identify the cost reduction tactics available for managing facilities costs.

 

KEY CONTENTS:

Module 1 – Introduction to Business Finance, Financial Management and Cost Management

  • What is business finance?
  • What is financial management?
  • Overview of Cost Management
  • Types of Costs
  • Difference between accounting and finance
  • Why finances matter?
  • Module Activity

Module 2 – Financial Statement Basics

  • Overview of Published Financial Statements
  • The Income Statement – Components and Key Figures to watch!
  • The Statement of Financial Position – Components and Key Figures to watch!
  • The Cash Flow Statement – Components and Key Figures to Watch!
  • Functions of Financial Statements
  • Financial Statement from a Stakeholder Perspective
  • Module Activity

Module 3 – Analysis of Financial Statement

  • The Ratio Approach
  • Vertical Analysis
  • Horizontal Analysis
  • Common Size Analysis
  • DuPont Analysis
  • Module Activity

Module 4 – Managing and Measuring Shareholders’ Value

  • Fundamental Valuation Ratios
  • Value of Firm and Share Market Performance
  • Tracking Market and Competitors
  • Approaches to Manage Shareholders’ Value
  • Measurements of Shareholders’ value
  • Module Activity

Module 5 – Costing Methods

  • Direct Costing as an Analysis Tool
  • Cost-Volume-Profit Analysis
  • Target Costing
  • Cost Object Analysis
  • Constraint Analysis
  • Process Analysis
  • Zero Base Budgeting
  • Module Activity

Module 6 – Functional Strategies for Cost Reduction

  • Cost Reduction Strategy
  • Compensation Cost Reduction
  • Benefits Cost Reduction
  • Sales and Marketing Effectiveness
  • Production and Maintenance Cost Reduction
  • Procurement Cost Reduction
  • Administration Cost Reduction
  • Facilities Cost Reduction
  • Finance Cost Reduction
  • Accounts Receivable Reduction
  • Inventory Reduction
  • Capital Budgeting Decisions
  • Cost Management Reports
  • Cost Management Measurements
  • Module Activity

Module 6 – Managing Cost through Budgetary Process and Performance Management

  • Converting business plans and KPIs into budgets
  • Profit planning and activity based budgeting
  • Budgets, behavior and beyond budgeting
  • Project based budgets
  • Managing material costs
  • Managing labor costs
  • Managing overhead costs
  • Company turnaround
  • Controlling costs using KPIs
  • Module Activity

Module 8 – Course Wrap Up

  • Business Case Studies
  • Review of the Modules
  • Module Final Assessment

 

METHODOLOGY

This program will be delivered via interactive presentation, practical hands-on activities, role-play and group & individual presentation.

 

ENROLLMENT & ENQUIRY
  • For Enrollment, kindly state the Course Title and  Number of Attendees, sent it to info@forster.com.my or via our Contact FormHere. We will customise a favorable quotation that suitable for your training objectives.
  • For Enquiry, kindly contact us at +603-8600 5993 for further information. Alternatively, you can email us at: info@forster.com.my, OR, sent your request via our Contact FormHere