some of our training
Costing training for purchasing staff
Costing training for purchasing staff
Objectives of Costing
·
Purchasing staff to understand the elements
which make up pricing
·
How to calculate basic costing models
·
How to identify cost drivers
·
Understanding the interrelationships of cost
in the supply chain
·
Analysing a value chain
·
The importance of capital cost
·
How to do proper benchmarking
Target audience
·
Purchasing staff
·
Project Managers
·
Contract administrators
·
Purchasing staff
Duration
3
days
This course is offered in-house and can be
custom made to include specific examples and exercises based on the
organisation’s activities.
Course content per module
- Introduction
to costing
a.
Manufacturing costs
i. Direct materials
ii. Direct labour
iii. Manufacturing overheads
b.
Non-manufacturing costs
i. Marketing/ selling costs
ii. Administrative costs
c.
Product costs
d.
Variable costs
e.
Fixed costs
f.
Direct cost
g.
Indirect cost
h.
Controllable cost
i.
Non controllable cost
j.
Alternative /differential cost
k.
Opportunity costs
l.
Sunk costs
- Cost and
performance Management systems
a.
Primary functions of cost
systems
b.
Activity-based costing
c.
Cost calculation models
- Strategic
Activity based management
a.
Product mix and pricing
b.
Product profitability
c.
Product related actions
i. Re-pricing of products
ii. Substitute Products
iii. Redesign products
iv. Improve products
v. Eliminate Products
- Customer
Focus
a.
Selling costs
b.
Distribution cost
c.
Admin cost
d.
Managing cost to service
customers
e.
Cost to serve for distribution
and retailing
i. Efficient ordering
ii. Efficient delivery
iii. Efficient promotions
iv. Co- Marketing
v. ABC costing
- Supplier
relationships and product development
a.
Supplier relationships
b.
Process integration
c.
JIT
d.
Choosing suppliers on the basis
of total cost
e.
Vendor sustained cost
f.
Product Design and engineering
g.
Activity Cost drivers for
product design
h.
Cost plus vs. target costing
- Capital
budgeting and time value of money
a.
Understanding long term
purchase decisions
b.
Time value of money
c.
Capital budgeting decisions
- Strategic
cost management
a.
Value chain analysis
b.
Strategic positioning
c.
Cost drivers
- Value
chain analysis
a.
Competitive advantage
b.
Cost leadership
c.
Differentiation
d.
Focussed strategy
e.
Value chains linkages
f.
Value chain vs value add
·
Linkage with suppliers
·
Linkages with customers
·
Internal linkages
- Evaluation
of capital investments
a.
Identifying cash costs and
benefits
i. Investment acquisition cost
ii. Sale of a capital investment
iii. Use of an asset
iv. Finance cost
b.
Investment cash flows
i. Net present value
ii. Internal rate of return
c.
Complex capital budgeting
decisions
i. Conflicting goals
ii. Accounting income
iii. Risk
iv. Functional competition
v. Resource constraints
- Benchmarking
a.
Definition
b.
Types of benchmarking
c.
Benchmarking steps
For pricing, scheduling, or to request a detailed course outline, please contact us today and empower your team to solve the challenges of tomorrow.