Course Details

Objective

By the end of the course, participants will be able to understand

• Understand the fundamental concepts of strategic cost management and its role in improving profit margins.
• Identify and analyze key cost drivers within the organization.
• Implement cost control measures to improve operational efficiency.
• Develop value-based pricing strategies and manage costs in relation to pricing.
• Use cost management tools (e.g., activity-based costing, target costing) to optimize business performance.
• Align cost management strategies with overall business objectives for sustainable profitability.
• Evaluate the impact of strategic cost management decisions on organizational performance and margins.

Content

Day 1: Introduction to Strategic Cost Management

• Overview of strategic cost management and its importance in margin improvement
• Key concepts: Fixed vs. variable costs, direct vs. indirect costs, and cost behavior
• The role of cost management in decision-making and profitability
• Aligning cost management with business strategy and objectives
• Introduction to cost management frameworks: Cost leadership and value-based strategies

Day 2: Identifying and Analyzing Cost Drivers

• Understanding cost drivers and their impact on profit margins
• Techniques for identifying key cost drivers in operations, supply chain, and production
• Methods for analyzing cost structures: Break-even analysis, cost-volume-profit (CVP) analysis
• Tools for monitoring and assessing costs in real-time
• Techniques for managing fixed and variable costs effectively

Day 3: Cost Control Strategies for Margin Improvement

• Best practices for cost control: Process optimization and waste reduction
• Lean and Six Sigma approaches to reduce costs and improve efficiency
• Implementing cost reduction initiatives across departments and functions
• Budgeting and forecasting techniques for better cost management
• Managing supply chain and procurement costs to enhance margins

Day 4: Advanced Cost Management Techniques

• Activity-Based Costing (ABC) and its application to strategic cost management
• Target costing and how to manage costs to meet target profit margins
• Value engineering and cost-value analysis to improve cost efficiency
• Cost allocation and apportionment methods to ensure accurate cost tracking
• Pricing strategies based on cost structures: Value-based pricing and dynamic pricing

Day 5: Aligning Cost Management with Business Strategy

• Integrating cost management with overall business strategy for sustainable margin improvement
• Performance measurement: Key Performance Indicators (KPIs) for cost management
• The role of technology in enhancing cost management: Automation and software tools
• Evaluating the impact of cost management decisions on organizational performance
• Final review and actionable steps for implementing strategic cost management

NOTE:

Pre-& Post Tests will be conducted.

Case Studies, Group Exercises, Group Discussions, Last Day reviews, and assessments will be carried out.

Methodology

A highly interactive combination of lectures and discussion sessions will be managed to maximize the amount and quality of information and knowledge transfer. The sessions will start by raising the most relevant questions and motivating everybody to find the right answers. You will also be encouraged to raise your own questions and to share in the development of the right answers using your own analysis and experiences.  Tests of multiple-choice type will be made available on daily basis to examine the effectiveness of delivering the course.

Very useful Course Materials will be given.

• 30% Lectures
• 30% Workshops and work presentation
• 20% Group Work& Practical Exercises
• 20% Videos& General Discussions