Practical Cost Reduction, Control & Budgeting Strategies

2 days workshop

Course Overview 

A success of every business or project will largely depend on how costs are managed and controlled. A yearly cost increased in running a business is inevitable. Without the capability to consistently control the rising cost, a business’ market share is lost and cash flow would be constricted. To survive in a competitive global marketplace therefore, requires managers’ commitment to cost control and creation of cost conscious culture. This course looks beyond merely cost control but aimed to heighten awareness in cost, increase efficiency and other strategic cost management approaches even as far as cost reduction exercise.

This program is designed for current challenging environments whereby managing cost, finance, budget and is crucial for company sustainability, growth, profitability & liquidity. This course will help to provide you with an environment that stimulates proactive behaviour in order to achieve greater goals for yourselves and your organization.

BENEFITS OF ATTENDING

  • Devise Ways To Achieve Your Budget Targets Under Current Economic Environment

  • Learnt From Successful Budgeting Using Beyond Budgeting Approach

  • Learnt Strategic Cost Management And Decision Making In Coping With Rising Costs

  • Built In KPI Values For All Key Strategic Organization Divisions

  • Formulating The Cost Reduction Strategies For Your Organization Costs

  • Strategies On Turnaround The Company

  • Strategies To Improve Debt Collection & Cash Flow

Methodology

Case Study, video & Group Discussion. Real-current problematic business cases will be analysed and scenario solutions will be discussed within the workshop.

Who Should Attend

Business owners, CFO, Accountants, accounting managers, cost accountants, tax manager, cost analysts, budget analysts, systems analysts, auditors and financial planners.

Special Feature: NOTE: Please bring laptop along

Course outline

Day 1 

Module 1: Achieving Your Budget (case study)

  • Asset conversion 

  • Collection 

  • Cost reduction 

  • Revenues 

  • Purchasing policy 

Module 2: Managing Budget 

Existing business budget

  • Revenue 

  • Cost of goods sold

  • Operation expenses

  • Monitor budget variance

Cash flow budget

Module 3: Budget Management

  • Key characteristics of effective internal budget processes

  • Ways to Overcome Budgeting & Forecasting Challenges

  • Budgeting and Forecasting Tips for CEOs

Module 4: Managing Constraints Resources (Case Study)

  • Shortage of scare  resources  

  • Calculate contribution per unit of scarce resource

  • Optimize Production Mix For Maximizing Profitability 


Day 2: 

Module 5: Strategic Cost Management and Decision Making  

  • Outsourcing or Make-or-Buy Decision

  • Decision to Add or Drop a Product, Service, or Business Unit

  • Relevant Costs of Replacing Equipment

  • Pricing Decisions

Module 6:  KPI Driven Culture

  • Senior management team

  • Credit management team

  • Sales & marketing Management team

  • Productivity management team

  • Logistic management team

  • HR & Administrative management team

  • ICT management team

  • Procurement management team

 MODULE 7: Managing Costs

  • Managing Material Costs

  • Managing Labor Costs

  • Managing Overhead Costs

Cost Reduction Success Story 

  • Areas of opportunity

  • Processes (eg, Planning & Forecasting, Cash Management)

  • Technology (eg, Integration IT operation & application, etc)

  • Operating model ( eg, Share services, Combination into one area, Centre of excellence,etc)GST

MODULE 8: Cost Reduction Framework

Decision Making

  • Cut costs

  • Leave it

  • Invest

Case Study (Improving Debt Collection & Cash Flow)

  • 7Cs, (Character, Capacity, Capital, Collateral, Conditions, Cash Flow & Common sense)

  • Monitoring Customer Accounts (implementing 7Cs)

Case Study (Survival Strategy)

All aspects of:

  • Objective ( balance growth, profitability & liquidity)

  • Resources ( manpower & funding & infrastructure)

  • Strategy ( focus on cash, cost & revenue)

  • Risk ( trade off short term vs long term growth & profitability)

MODULE 9: Formulate Your Cost Reduction Challenge

  • High production cost ( how to trim it

  • High reject cost ( ways to reduce it)

  • Cash flow problem ( ways to stay healthy financially)

  • High AR- collection Problem ( ways to recover your debts)

Finance , Costing & Budgeting Analysis For Managers

Cost Analysis to Support Strategic Decisions (Master Level)

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