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Activity-Based Cost Setting and Control (Cost Management)

Description

Many levels of control exist in the pursuit of world-class manufacturing status. These levels fit into the small, mid and large size manufacturing companies. The goals of world-class manufacturing are continual and rapid improvement in quality, cost, lead-time and company’s profitability.

These control concepts provide management tools to the senior management and all key player to track changes and ensures that time is spent making the product right the first time. It reduces or eliminate time wasted on inspection, rework and on all non-added value activities. It ensures the unit production cost meets the objectives of the company and reacts quickly to any necessary improvement without surprises.

Managers should work with an Activity Based Costing system, which is a cost allocation method that assigns cost to each process undertaken to transform purchases to sales. Costs typically found “below the line” is considered in product contribution analysis, thereby enhancing the accuracy and value of product profitability information. Too often, companies unknowingly invest significant amounts of resources into unprofitable product lines, rather than concentrating efforts on more profitable products.

This training program will provide managers at all levels an understand toward the implication of Self-product design and Raw materials sourcing through the development and manufacturing chain and how do they affect the cash flow of the factories on the long run. How factories should restructure their costing system as well as determine cost objectives in order to monitor, control and meet the estimated unit price through the manufacturing process in an economical method. 

Audience       Managers at all levels, Engineers, costing analysts, and Staffs involved in product development