Cost Planning, Control & Optimization

Finance, Accounting & Investment

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Introduction:

Cost control is important and yet presents certain challenges. Costs must be managed without compromising either safety or production quality. This innovative Cost Planning, Control & Optimization training course presents the delegates with practical tools and techniques which can easily be applied immediately within their company and work. It also introduces to the delegates the emerging tools and techniques to develop for the future.

This training course will help the delegates to save their employers money without damaging the business or sacrificing the quality. This Cost Planning, Control & Optimization training course will feature practical, engaging and innovative new techniques from different organisations. This training course will also help the delegates to identify and deliver savings without affecting the performance, capability, strategy, delivery or safety.

 

Objectives

By the end of this Cost Planning, Control & Optimization training course, participants will be able to:

Proactively manage costs

Seek opportunities for cost reduction

Effectively control costs

Make better use of cost budgets, plans and forecasts

Understand project appraisal

Control costs with projects

 

 Course Outline

Day One

Cost, Profit, Risk and Cash

Costs and Profit

Objectives - Mission & Vision - Profit Now vs. Profit Later

Strategy and How It Guides Cost Management Decisions / Strategy Models and Costs Management

Cost vs. Value / Value Focused Approaches Profit Drivers

Costs and Cash

Cash vs. Profit

Cost – Cash and Non-cash

Costs Management vs. Cash Management / Capital vs. Revenue Managing Capital Cost / Managing Revenue Cost

Cost and Risk

Introduction to Risk

Cost and Risk

Day Two

Costs & Costing

Understanding and Working with Costs

Cost vs. Value

Value Based Cost Management / Thinking

Plan for Cost Reduction and Profit Improvement

Fixed and Variable Costs Income Statement

Break-even Analysis / Contribution Margin

Costing Approaches – Full Absorption, Marginal, ABC

New Ideas in Cost Management – Lean Principles / ABC – Big data

 

Day Three

Planning and Forecasting Costs / Risk

OPEX Planning Approaches

Value Engineering Approaches Applied to OPEX and Personnel Incentives

G&A Cost Planning and Valuation

Forecasting Tools and Techniques

What is Risk?

Modelling Costs and Profit and Risk

OPEX Long-term Forecast

OPEX Planning and Performance Monitoring

 

Day Four

Investment Appraisal and Projects – Capital Budgeting

Building Cashflow Models for Decision Making

CAPEX Planning System

Factors Used to Evaluate the Efficiency of CAPEX Projects, Annual Investment Program

CAPEX Planning

Applying Time-adjusted Measures - The Time Value of Money

Net Present Value (NPV) and Internal Rate of Return (IRR)

Sensitivity Analysis, Scenario Analysis, Simulation/Monte Carlo Analysis

The Importance of Flexibility and Options

Dealing with Risk and Changing Circumstances

 

Day Five

Budgets and Cost Control

The Budgeting Process

The Role of Budgeting

Annual Budgeting Process

Identifying and Resolving Budgeting Variances

Different Budgeting Systems in Use Today

Budgeting Tips and Techniques

Variance Analysis

Beyond Budgeting