Accounting & Finance for Advanced Manufacturing
About This Course
Advanced Manufacturing � the use of advanced technologies in manufacturing � has not only enabled factories to produce more technically sophisticated products, but also allow them to adjust their production more flexibly. Flexible manufacturing gives companies an edge as it adjusts to customers demand for greater variety, faster product introduction, and shorter product life cycles, while maintaining a consistently high product quality. This competitive edge can turn into competitive advantage if cost is kept low at the same time and pricing set at a competitive level. However, investment in Advanced Manufacturing does not come low and justifying it may pose a challenge for Management.
This course provides an Overview of Manufacturing Accounting, Discuss the Cost Impact from adoption of Advanced Manufacturing, Explores Issues affecting the Investment Decision and Introduces the Techniques to evaluate it. Finally, it recommends using an Activity Based Costing System to track and refine product costing, to allow companies to make better pricing decisions for more competitive wins in the market place.
What You'll Learn
-Actual vs Standard Costing
-Inventory Valuation (Marginal vs Full Absorption)
-Manufacturing Variances in Standard Costing
-Significant Manufacturing Cost Items to Watch
-Cost Reductions (Sourcing, Productivity, Efficiencies)
2)Financial Benefits of Advanced Manufacturing
-Impact on Manufacturing Cost Drivers
-Impact on Inventory Cost
-Other Qualitative & Indirect Financial Benefits
3)Justifying Capital Investment in Advanced Manufacturing
-Financial Measures: Traditional vs Advanced Manufacturing
-Capital Evaluation of Advanced Manufacturing Investments
a)Cost of Capital
b)Concept of Cash Flows / Time Value of Money
c)Building Up a Financial Investment Case
d)Net Present Value (NPV)
e)Internal rate of Return (IRR)
f)Other Considerations
4)Better Costing System, Better Pricing Decisions
a)Direct & Indirect Costs in Manufacturing
b)Activity-Based Costing System
-Implementation Methodology
-Comparison with alternative method
c)Pricing Methodologies � an introduction