Budgeting is more than mere vague control. Budgeting should deliver the corporate strategy, add shareholder value – deliver to investors*
This In-house programme will ensure your management team
- Are aware of costs at all times
- Seek cost reduction from the start – consider life cycle costing
- Understand real budgeting
- Use techniques such as ZBB and ABC where appropriate
- Ensure cost reports lead to ACTION
- Have a cost management process which delivers
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Budgeting – proper budgeting challenges costs
- Why budget – the need for detailed business objectives
- The philosophy of the business
- What costs are the issue?
- The importance or having the right culture
- Can the accounting system cope?
- Budgetary control measures
- Designing budget reports – for ACTION
Cost removal – taking out costs
- The importance of cost reduction
- What are your and your sector’s ‘problem’ costs?
- The risks of poor cost control
- Capital and revenue costs
- The importance of cost awareness
- Costs of poor operations design/poor processes
- Value engineering
- Removing redundant costs
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
- Dealing with overheads – what is meant by allocation, absorption or apportionment?
- The apparent and real problems with overheads
- Only necessary costs should be incurred
- Cost reporting – selecting performance measures*
- Reports for action – making budgets and cost management work
- The purpose of a report
- Content – deliverables and feedback
- Culture is so important
- Selecting KPI’s and KPD’s
- What measures can be used to identify over spends as early as possible
*Design of cost control reports – reports should lead to ACTION