2 Days Workshop
Introduction
The primary goal of this workshop is to help Manufacturing professionals who have little or no knowledge in finance and accounting in developing sound financial knowledge to read and understand financial reports. Real-current problematic finance & business cases will be analyzed and scenario solutions will be discussed within the workshop.
Course Objectives
By the end of this course you will be able to:
understand basic cost concepts used in business
Understanding CAPEX and OPEX (Operating expenditures)
understand basic budgeting concepts used in management planning and control
understand variance analysis concepts
calculate break-even point and target profits using the marginal costing concept
Appreciating Standard costing as a cost control tool
Methodology
Case Study & Group Discussion.
Who Should Attend
Entrepreneurs, Business Managers, Marketing Managers, Supervisors, Executives and Managers and all professionals who are interested in Finance for non Finance
Special Feature:
NOTE: Please bring laptop along
Programme Outline
Day 1
Module 1: Definitions and introduction to Financial Statements (Case study)
Financial vs Management accounting – understanding managerial accounting
Making sense of financial terms (overheads, profitability, revenues, costs, depreciation, variances, inventories, financial statements) in the context of the manufacturing industry
Understanding Income Statement, Balance sheet & other Internal Financial reports in Process manufacturing industry and highlighting the differences compared to typical Financial statements
Appreciating Cash Flow Statement as indicator of liquidity.
Inventories: Finished Goods, WIP and other raw materials present in typical manufacturing environment
Case study: Understanding financial Statements
Module 2: Profit & Loss Statement
How to read Profit & Loss Statement
Use Profit and Loss Statement to evaluate performance
Concept of margins and profit analysis
Relationship between P&L statement to balance sheet
Profit & Loss accounting model
Why profit is different from cash
Module 3: Cash Flow Statement
Lifeblood of business – Cash Flow Statement
Relationship between cash flow statement and balance sheet
3 streams of cash flow, Operating ,Investing &Financing
How to determine financial health from cash flow pattern
Determining if the company is using internal cash flow to finance growth or relying on external financing
Module 4: Improve Cash Flow & Profitability Position (Practical Case Study)
Applying what if analysis (goal seek)
Applying profitability strategy management framework
Formulation stage
Execution stage
Evaluation stage
Day 2
Module 5: Financial Ratios Analysis (Case Study)
Learn how to size up a company quickly by reading their financial ratios
Liquidity
Solvency
Efficiency
Profitability
Asset Management
Assessing drivers of company profitability and growth:-
Operations and investment strategies : operating and investment management
Module 6: Investment Appraisal (Case Study)
Calculate return on investment (ROI),
Calculate net present value (NPV), internal rate of return (IRR), and payback period
Recommendation to proceed or reject based on financial & non-financial considerations
Module 7: Cost Structure and Behaviour
Importance of cost structure knowledge: Variable cost, fixed cost and semi-variable costs
Concept of Process costing & Job Costing
Cost components: Materials, labour and overheads & Product costing
Indirect costs: Material, labour and overheads (allocating to final products)
Cost control methods and techniques (area to concentrate on)
Understanding Product/Job costing components
Module 8: Cost-Volume-Profit (CVP) Analysis & Break-Even Analysis
Concept of contribution
Contribution sales ratio
Break Even analysis
Margin of safety
Module 9: Budgeting
Planning Process
Preparation Of Budgeting (Operational & financial Budget)
Budgeting and Human Behavior