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;