THE COST REDUCTION STRATEGIES SEMINAR 6-7 DECEMBER 2018, AT THE KSMS, NAIROBI, KENYA.
Salutations!
THE COST REDUCTION STRATEGIES SEMINAR 6-7 DECEMBER 2018, AT THE KSMS, NAIROBI, KENYA.
OVERVIEW
Businesses that don’t control their costs don’t stay in business. How well are you doing? Is everyone in your organisation sufficiently aware of costs, managing them effectively and maximising opportunities to reduce them?
There is scope for improvement and this seminar will help get you back on track. It will demonstrate that cost reduction is so much more than cost control and cost cutting. True cost management is about being aware of costs, seeking to reduce them through good design and efficient operating practices whilst taking continuing action on overspending.
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Venue: The Kenya School of Monetary Studies, Nairobi Kenya
Date: 6th-7th December, 2018
Course Fee: Ksh. 38,200 or USD 380/- inclusive of 2 days attendance, buffet meals, teas, seminar kit and taxes.
NITA: Participating organizations can claim reimbursement of fee paid in accordance with NITA Rules.
Pay Scheme: Organizations sponsoring 3 participants get the 4th to attend free
TRAINING OBJECTIVES
This course will develop the delegates’ skills in:
• Being aware of costs at all times
• Seeking cost reduction from the start (including life-cycle costing)
• Appraising projects / production to identify and take out risk
• Understanding real budgeting
• Using techniques such as ZBB and ABC where appropriate
• Ensuring cost reports lead to action
• Managing a cost reduction process that delivers
BENEFITS TO THE ORGANISATION
The latest concepts of minimizing costs i.e. Activity-based costing, target costing and benchmarking will be comprehensively covered with a practical orientation.
Delegates will be provided with tools for analysis of the costs across the value chain and taught to identify ways of redesigning activities and processes to improve productivity and value.
The programme provides a discussion of the implementation issues in applying the latest techniques for cost management and integrates a broad range of examples from both product and service sectors.
Participants will also develop action plans based on the concepts presented in the class for:-
• Identification of cost reduction and business improvement opportunities
• Better reporting and ownership of costs
• Greater awareness and control of everyday costs
AUDIENCE
All executives, managers and other staff whose activities impinge on cash & cost who need to:
• Review or learn the concepts and measures used to be aware of costs, reduce them and control operations
• Develop their company and personal process of cost reduction and control
• Focus themselves and other members of the team on continuing cost awareness and reduction throughout the organisation
FORMAT
A thoroughly practical two-day course involving exercises, formal tutorials and trainer-facilitated discussions.
SPECIAL FEATURES
For maximum benefit, this programme can be tailored to reflect your organisation’s internal budgeting and control systems. The examples can also be adapted for specific business sectors. The cost reduction action plans that participants will prepare in the final session of the programme guarantee that this course will pay for itself very swiftly indeed.
COURSE OUTLINE
1 Introduction – the cost management process
• The risks of poor cost control
• Capital and revenue costs
• The importance of cost awareness
• The importance of cost reduction
• Cost management – the key aspects
• How to build a cost management and control process checklist for your areas of responsibility
2 Cost removal – taking out costs
• Cost awareness
• Costs of poor design / poor processes
• Value engineering
• Removing redundant costs
3 The need for commercial, technical and financial appraisals
• Understand the problems before cash is committed and costs incurred
• Making the effort to identify commercial and technical risk
• The time value of money – DCF techniques for long term projects
• Cost models for production processes and projects
• Costing models – project appraisals
• The use of spreadsheets to identify sensitivity and risk
• How to focus on risk management
4 Budgeting – proper budgeting challenges costs
• The philosophy of the business – are costs an issue?
• The importance of having the right culture
• The need for detailed business objectives
• Budgetary control measures
• Designing budget reports – for action
5 Zero-based budgeting (ZBB) – the principles
• Much more than starting with a clean sheet of paper
• What ZBB can achieve
• The concept of decision packages – to challenge business methods and costs
• Only necessary costs should be incurred
• A review of an operating budget – demonstrating what ZBB challenges and the costs it may lead to being taken out
6 Awareness of overheads and other costs
• Definitions of cost – direct and indirect
• Dealing with overheads – what is meant by allocation, absorption or apportionment?
• The apparent and real problems with overheads
• Different ways of dealing with overheads
• Review of overhead allocation methods and accounting and reporting issues
7 Overheads and product costing
• Activity-based costing (ABC) – the principles
• Where and how the ABC approach may be helpful
• Know the ‘true’ cost of a product or a project
• Should you be in business? Will you stay in business?
• Identifying weaknesses in a traditional overhead allocation
• How ABC will help improve product or service costing
• Identifying which products and activities should be developed and which abandoned
8 Cost reduction culture
• The need for cost reports
• What measures can be used to identify over-spends as early as possible
• Cost control performance measures and ratios
9 Design of cost control reports
• Reports should lead to action and deliver
• Selecting cost control measures which can be acted upon
• Practice in designing action reports
10 Course summary – developing your own cost action plan
• Group and individual action plans will be prepared with a view to participants identifying their cost risks areas and the techniques which can be immediately applied to improve costing and reduce costs
CERTIFICATE
Upon successful completion of this program, participants will receive a Certificate of Achievement.
Limited slots are available for this Event, Book Early.
For more information on participation, contact Catherine.
Best regards,
Catherine Wanja,
Delight Africa Ltd,
Dev Towers - 4th Floor, Suite 4A
Biashara Street, CBD Nairobi
P.O. Box 12269 - 00100, Nairobi Kenya
Land line: +254 722 533 771 (or) +254 700 221 221
Fax : 020 222 54 39
WhatsApp : +254 729 236 920
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