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Cost Management and Control Seminar

Cost Management and Control Seminar. suppliers of cement aggregates (crushed stone, sand and gravel) ready-mix concrete and asphalt Related services. The Holcim Group and Its Costing System. 70 countries on all continents, 90,000 employees 2006 Revenues: $ 21,825 M.

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Cost Management and Control Seminar

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  1. Cost Management and Control Seminar suppliers of cement aggregates (crushed stone, sand and gravel) ready-mix concrete and asphalt Related services. The Holcim Group and Its Costing System 70 countries on all continents, 90,000 employees 2006 Revenues: $ 21,825 M Group B31 Aldo Gallo Cáceres - Félix Morán Subía - Thiago Macitelli

  2. + 1050% + 480% Emergent Markets Established Markets Holcim Group Figures and Value Chain 1980 Employees 18734 2006 Employees 90000 1980 Revenues $ 2,209 M 2006 Revenues: $ 21,825 M

  3. Code: 100 RM Extraction Code: 500 Cement Grinding Code: 300 RM Preparation 2 Code: 400 Clinker Production Code: 600 Dispatching (no main) Code: 200 RM Preparation 1 Pre-process Cost Centers: Correctives. Gypsum and additives. Mineral Components. Power Generation. Auxiliary Cost Centers: Alternative Raw Materials. Alternative Fuels. Main Cost Center Classification Cement Production Process Main Cost Accounts Corporate Manufacturing Corporate Logistics Marketing & Sales Administration

  4. Costing System Process Costing Major Guides of the Costing System: Employee`s input: • Cost Centers. • Accounts codification. • General required description of the movement. The accounting software (SAP): • It has an internal assignation process, accounts are already internally tagged as: variable cash cost, Fixed cash cost, and others related. Key Issue: (Employee's Main Role for the success of the Costing System) Right Assignation of accounts and cost centers.

  5. Cost Drivers Main Information Behind • Cost center’s impacts on total cost • Relevant costs • Main opportunities for cost reductions.

  6. How to Choose a Costing System • An accounting system established to monitor a company's costs, providing management with information on operations and performance. • Process costing • High volume • Are identical • identical amount of direct labor • Repetitive operations • Job Order costing • typically low volume • Tend to be unique (custom order) • different amount of direct material • different amount of direct labor

  7. Decision making planning and control process Cost drivers e.g. Process improvement, change raw materials, etc. Performance indicators Adjust the plans From: Drury (2004). Management and cost accounting. 6th edition. ISBN 978-1-84480-703-1

  8. Decisions Making Process Using Costing System

  9. Decisions Making Process Using Costing System

  10. Possible decisions • Process improvement (e.g. reduce the number of stops by increasing preventive maintenance) • Change fuel supplier to reduce costs • After selecting and implementing the decisions they performance has to be monitored in the same way • The new performance indicators could be compared with the previous period • If necessary, corrective action plans could be taken

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