School of Telecoms Management

88643
Full price: £1225
Earlybird price: £1095

Cost Optimisation for the Telecoms Professionals Programme

Introduction—the cost management process

  • The risks of poor cost control
  • Capital and revenue costs
  • The importance of cost awareness
  • The importance of cost reduction
  • Cost management – the key aspects
  • How to build a cost management and control process checklist for your areas of responsibility

Initiating strategic cost management projects

  • Strategic change – the catalysts
  • Initiating a strategic cost management programme – workgroup: plan of action, objectives and scope, initial fact find, board presentation
  • Strategic information needs
  • Leadership risks and mitigation
  • Suggested framework for initiating a strategic cost management programme

 Cost removal—taking out costs

  • Cost awareness
  • Costs of poor design/processes
  • Value engineering
  • Removing redundant costs

The need for commercial, technical & financial appraisals

  • Understand the problems before cash is committed and costs incurred
  • Making the effort to identify commercial and technical risk
  • The time value of money – DCF techniques for long term projects
  • Cost models for production processes and projects
  • Costing models – project appraisals
  • The use of spreadsheets to identify sensitivity and risk
  • How to focus on risk management

Cost management processes & techniques

  • Big business that went bust
  • Corporate governance
  • Structures and processes
  • Operational cost management techniques
  • Cost drivers and performance measures
  • Potential weaknesses of cost management techniques
  • Common cost optimisation strategies

A strategic cost optimisation methodology

  • Methodology overview
  • Application of the methodology
  • Programmes and projects

Budgeting—proper budgeting challenges costs

  • The philosophy of the business – are costs an issue?
  • The importance of having the right culture
  • The need for detailed business objectives
  • Budgetary control measures
  • Designing budget reports – for action

 Zero-based budgeting—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
  • Only necessary costs should be incurred
  • A review of an operating budget

 Awareness of overheads & other costs

  • Definitions of cost – direct and indirect
  • Dealing with overheads
  • The problems with overheads
  • Ways of dealing with overheads
  • Review of overhead allocation methods and accounting and reporting issues

Overheads & product costing

  • Activity-based costing (ABC) – the principles and how it may be helpful
  • Know the ‘true’ cost of a product
  • Should you be in business? Will you stay in business?
  • Identifying weaknesses in a traditional overhead allocation
  • How ABC will help improve product or service costing
  • Identifying which products and activities should be developed and which abandoned

 The human factor

  • Effective leadership
  • Reluctance to change
  • Personal interests
  • Passive and active methods of winning support

Cost reduction culture

  • The need for cost reports
  • What measures can be used to identify overspends as early as possible
  • Cost control performance measures

Design of cost control reports

  • Reports should lead to action and deliver
  • Selecting cost control measures which can be acted upon
  • Practice in designing action reports

Course summary—developing your own cost action plan

Group and individual action plans will be prepared with a view to participants identifying their cost risks areas and the techniques which can be immediately applied to improve costing and reduce costs.