Today operating environment is defined with one word: Volatility; a state of economy where many operating parameters of a company (raw materials, sales price and quantities, profit margins, regulations, energy cost, etc.) change at great speed.
Volatility of the main factors applied in the complex environment a company operates in today (production of many different items, many business units with diversified products, many plants in different geographical areas) creates the feeling of uncertainty about where the company stands, what has to be done (decisions to be taken) and what can be the possible impact of such a decision.
Furthermore, this stressful environment creates difficulties in the actual generation of decisions, even if these decisions are absolute important for the survival and prosperity of the company. Even if Top Management possesses the decisive willingness to play its coordinational and decisional role, even if the required analytical data exist the synthesis model and tools which will give an image of the reality along with the related consensus of the involved departments, is missing.
By the end of the course, participants will be able to:
- Understanding the real cost of a product or service without assumptions and simplification averages compared to the budgeted cost of this product
- Understanding the importance of timely produced financial results
- Planning the operations of the company and being able to check the outcomes of this plan
- To understand the resilience and the impact to the Company if various parameters (raw material price, sales price or quantity, production, productivity, expenses, etc.) change
- To understand the strong and the weak points of the company, as well as the cost and benefit of such strong or weak points.
Who should attend
This course is ideal for either managers who are or may be involved in any level of decision making or employees who may, in the course of their normal duties, be called upon to take up a position in this decision making process. Alternatively, the course would suit anyone within the company who wishes to understand the principles of Industrial Costing & Operational Planning.
- Basic Costing Principles
Fixed Cost – Variable Cost – Depreciation – Cost Elements in a Costing Process
Industrial Cost Calculations
Source of information – Collection of required data – Importance of producing recipe – Cost Calculation (Examples) – Importance of Value Added – Production Cost vs. Sales Cost
Definition of Operational Plan
What is an Operational Plan – How an Operational plan is constructed – Who should develop and who should use an Operational Plan
Uses of an Operational Plan – Scenarios – Effect of a change in a cost element
Operational Planning as a Control Mechanism
Types of information to control – Roles & Responsibilities
Application of results to improve company functions
This interactive training course includes the following training methodologies as presented on the next column based on percentage of the total tuition hours:
Workshops & Work presentation
Case Studies & Practical Exercises
Videos, Sofware & General Discussion
The course instructor may modify the above training methodology before or during the course for technical reasons with no prior notice to participants.