Program Outline
Module 1: Introduction to Industrial Cost Management
- Fundamentals of industrial cost management
- Difference between cost, expense, and loss
- Objectives of cost management
- The role of cost management in improving profitability
- Relationship between cost, productivity, and quality
Module 2: Industrial Cost Elements
- Raw material costs
- Auxiliary and consumable materials
- Direct labor costs
- Indirect labor costs
- Manufacturing overhead costs
- Allocation of cost elements to production cost centers
Module 3: Cost Classification
- Fixed costs
- Variable costs
- Semi-variable (mixed) costs
- Direct and indirect costs
- Controllable and uncontrollable costs
- Relevant costs for decision-making
Module 4: Costing Systems
- Job Order Costing
- Process Costing
- Actual Costing
- Standard Costing
- Activity-Based Costing (ABC)
- Comparative analysis of costing systems
Module 5: Production Cost Analysis
- Raw material cost analysis
- Energy cost analysis
- Labor cost analysis
- Maintenance cost analysis
- Depreciation cost analysis
- Industrial service cost analysis
Module 6: Product Costing
- Determining unit production cost
- Allocation of manufacturing overhead
- Product cost assignment
- Cost of goods manufactured
- Inventory costing
- Cost of goods sold (COGS)
Module 7: Cost Variance Analysis
- Introduction to variance analysis
- Material cost variances
- Labor cost variances
- Energy cost variances
- Production variances
- Preparing variance analysis reports
Module 8: Cost-Volume-Profit (CVP) Analysis
- Cost-Volume-Profit (CVP) relationships
- Break-even analysis
- Margin of safety
- Operating leverage
- Impact of cost and price changes on profitability
Module 9: Cost Planning and Control
- Preparing cost budgets
- Cost center management and control
- Key Performance Indicators (KPIs)
- Measuring resource utilization efficiency
- Performance reporting
Module 10: Cost Reduction and Cost Optimization Techniques
- Lean Manufacturing
- Kaizen Costing
- Target Costing
- Value Engineering
- Benchmarking
- Continuous Improvement
Module 11: Cost Management Applications in the Iron and Steel Industry
- Cost structure of iron and steel plants
- Analysis of raw material costs (iron ore, scrap, coal, DRI, ferroalloys)
- Energy cost analysis (electricity, natural gas, oxygen)
- Furnace and steelmaking operation costs
- Rolling mill and finishing process costs
- Quality costs, yield losses, and rework costs
- Maintenance cost analysis
- Transportation and logistics costs
- Cost-per-ton production performance indicators
- Case studies from iron and steel manufacturing plants