Effective Budgeting and Operational Cost Control For Projects and Contracts

Effective Budgeting and Operational Cost Control For Projects and Contracts

Program Feature

• The management system in practice.
• Budgeting practices.
• Traditional and innovative tools for budgeting and cost control.
• Multiple cost analysis for different purposes.
• KPIs and the Balanced Scorecard.
• Explores the financial metrics that are commonly used
• Examines the less frequently thought of financial impact of typical operating decisions and actions.
• Building on your competencies, you will examine the inner mechanics of how finance and accounting can impact a project.

Objectives

• Master the budgeting process
• Understand costs behaviour
• Explore traditional & innovative approaches to Budgeting & Cost Control
• Analyse process costing
• Manage balanced scorecard
• Minimise project financial risk
• Develop and apply tools for comparing project financial returns

Agenda

Day One

Introduction: Building a Common Financial Language

• The key role of budgeting and cost control in contemporary organizations
• The 21st century business imperative: delivering value added (but to whom?)
• Financial vs. Managerial accounting (for decision making)
• Understand your processes: integrating financial and non-financial aspects
• Examples & Discussion

The Budgeting Process

• The key features of budgeting
• Advantages and concerns with budgeting
• Accountability and centres of responsibility

Day Two 

The Budgeting Process (continued)

• Zero-based budgeting
• Budgeting and cost control
• Examples & Discussion

Cost Analysis

• Different costs for different purposes
• Fixed vs. Variable costs
• The Cost-Volume-Profit analysis model
• Contribution Margin analysis
• Examples & Discussion

Day Three

Traditional vs. Advanced Techniques in Cost-Control

• Indirect (OH) vs. Direct costs:
• Traditional Cost Allocations systems vs. Activity-Based Costing (ABC)
• Linking resources, activities and management
• Variance analysis
• Video, Case Study and Examples

Agenda (Continued)

Day Four

Beyond the Budgets: Balanced scorecards and Six-sigma

• Broadening performance measurement systems
• Beyond budgeting: integrating financial and non-financial issues
• Introducing the Balanced Scorecard
• Introducing the Strategy maps
• Introducing Six-sigma
• Video, Case Study and examples

Day Five 

Contract Profitability – Pricing

• Pricing strategy and tactics
• Profit planning
• Cost estimating,
• Cost-based pricing – Market-based pricing – Value-based pricing
• Profit objective
• Market structure
  • Follow-on business
  • Risk

Cost Estimating What Works Best

• Cost estimating methods
• Planning and scheduling
• Making sense of historical data
• Experience curves
• Relationship between cost estimating and pricing

Logistics

• All programs are held in city centre first class hotels,
• Group discounts are available on request, please contact support with your requirements for quotation.

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