Cost Management - CM

Posted by PetroSkills on Thursday, March 18, 2010

Start Date Monday, May 17, 2010
End Date Friday, May 21, 2010

Location
London, UK

Full Details

See full details at http://www.petroskills.com/courseDetails.aspx?courseID=566

DESIGNED FOR

Operating managers, field personnel, project managers, technology managers, budget managers, or practically anyone in the company wanting to manage costs in a more efficient and effective manner.

A familiarity with finance is helpful but not required.



YOU WILL LEARN HOW TO

Identify the fundamental types of costs and the cost drivers

Understand the different cost classifications of energy companies

Trace all relevant costs to a single cost object for better managing costs

Determine and monitor the behavior of costs

Build your own Activity dictionary

Use sensitivity analysis of cost behavior for better decisions

Design management control system that actually works

Understand the principles of Activity Based Management (ABM) and its development and implementation

Determine the relevant information for decision making

Analyze capital projects using the proper tools and techniques

Use and misuse the budget

Manage or not mis-manage costs throughout the organization

Evaluate costs for effectiveness





ABOUT THE COURSE

Few problems threaten the petroleum businesses of the world today more than uncontrolled costs. In the last few years, competitive pressures have intensified and will continue to do so. Economic realities in the 21st century have made it necessary for most companies to operate with a “lean and mean” philosophy. Industries previously operating under regulatory rules which allowed them to pass on all costs to the customer now face a changed regulatory environment. As the price of our products fluctuates widely, the companies that are most vulnerable are those that are ineffective in understanding and managing their costs during such volatile time.

Historically energy companies have relied on the efficiency of their operations from pre-drilling activities all the way through well de-commissioning to drive company profitability. The ability to properly manage costs is now paramount in a company’s success and even their ultimate survival. As the energy industry goes through its most monumental changes since the 1970’s, those companies that can identify efficiencies and inefficiencies will be able to react to the challenges of the global market place, thus generating higher profits. The course will cover costs management from the basics to the most recent events and trends in these fast evolving topics, using relevant exercises, timely case studies and role playing techniques.

This seminar is an introduction to Practical Cost Management techniques and the potential for helping you better understand the underlying dynamics of cost, thereby facilitating better decision making concerning products and services, work flows, capital investments, as well as the day-to-day monitoring of your business.

One personal computer is provided, at additional cost, for each two participants.



COURSE CONTENT

Defining costs, classifications and terminology

Classifying costs

Determining cost objects, cost drivers and their behaviors

Assigning costs for an E&P company

Types of Cost management systems

Using value added costs versus non value-added costs for improvement

Developing an BPA for an E&P company

Building an activity dictionary



Operating Cost Management

Using the budgets efficiently and effectively

Support departments cost allocations

Measuring activities and their performance

Determining the break-even cost

Using variance analysis to monitor every line item of the budget

Measuring productivity and controlling it

Getting the most out of the supply chain



Capital Cost Management

Capital investment decision making and their effect on cost management

Developing and analyzing capital investment projects

Replace versus maintain

Life Cycle Costing

Analytical techniques for managing costs

Managing personnel, logistics, purchasing and material costs effectively



Performance Measurement

Using capacity management techniques to manage costs

Ratio analysis and non-financial measures

Economic Value Added™

Key Performance Indicators for the oil and gas industry

The Balanced Scorecard that works

What financial measures are critical and which are not

Raising your own cost management awareness


See full details at http://www.petroskills.com/courseDetails.aspx?courseID=566

Category
Training Courses