Cost Management & Cost Reduction
Overview
Controlling costs without damaging service or growth is a constant challenge. This course covers cost analysis and costing systems, identifying cost drivers, practical cost reduction techniques and how to implement sustainable cost management programmes.
Who should attend
Finance and cost accountants, operations and procurement managers, and department heads.
Training methodology
Interactive presentations, practical exercises, case studies, group discussions, role-plays where relevant, and a personal action plan that participants apply in their own work.
Objectives
By the end of this course, participants will be able to:
- Classify and analyse costs
- Apply costing methods including activity-based costing
- Identify cost drivers and savings opportunities
- Use practical cost reduction techniques
- Implement and sustain a cost management programme
Course outline
Day 1Cost Fundamentals
- Cost classifications
- Cost behaviour
- Cost and value
- Cost reporting
- Exercise
Day 2Costing Methods
- Absorption and marginal costing
- Activity-based costing
- Service costing
- Cost allocation
- Costing exercise
Day 3Finding Savings
- Cost drivers
- Spend analysis
- Benchmarking
- Process waste
- Opportunity workshop
Day 4Cost Reduction Techniques
- Procurement savings
- Process improvement
- Zero-based reviews
- Outsourcing decisions
- Case study
Day 5Sustaining Results
- Cost management programmes
- Tracking savings
- Engaging staff
- Avoiding false savings
- Action plan
