Whether an organisation is for profit or not-for-profit; or, it is pursuing a single or triple-bottom line agenda, a common driver of success on a sustainable basis is an effective and efficient cost management system. Cost is said to be a reflection of the choices we make. 

This programme offers to widen and deepen participants’ knowledge of cost management from a strategic perspective

Key Learning Objectives/ Benefits

At the end of this programme, you will be able to:

• Understand the linkage between your business strategy and cost management strategy
• Obtain, understand and apply a set of cost management tools
• Understand the cost structure of the goods and services procured
• Distinguish between price and cost management
• Identify data sources for building cost models
• Learn to apply cost models effectively in negotiations
• Use price discipline in long-term contract negotiations
• Learn to apply Total Cost of Ownership (TCO) principles in sourcing decisions

Programme Curriculum

        Fundamentals of Strategic Cost Management (SCM)

• Value Chain Analysis
• Strategic Positioning Analysis
• Revenue and Cost Driver Analysis
• SCM Case Study

        Cost Analysis

• Industry cost profiles
• Product should-cost models
• Service should-cost models
• Case study: Product or service should-cost
• Process-based should cost models
• Case study: Process should cost

        Cost Models and Costing Systems

• Price Discipline (dynamic cost models)
• Case Study: Price Discipline (product/ service)
• Total cost of ownership (TCO) models
• Case Study: TCO (product/service)
• Rationale for Selecting a More Refined Costing System;
• ABC vs. Simple Costing Schemes;
• Case study: ABC vs. Simple Costing Schemes;