On-Hold Courses

Financial Aspects of Material Planning

Aimed at non accountants, developed particularly for material control / production planning team members and manufacturing supervisors, this course is delivered from an ‘operations’ viewpoint, in an appropriately pitched fashion. Typically a half day session provides a suitable overview. Typical course content includes :-

Course Includes

  • How costs build up through the process
  • Carrying costs identified (obvious and hidden)
  • Inventory Turns (including the effect on margin)
  • Purchase price reductions – implications on the bottom line
  • Quantity discount problem
  • Stock valuation using various methods (FIFO, LIFO etc)
  • Holding cost implications for ‘dead stock’ and ‘slow moving stock’
  • Benefits of low inventory in a deflationary industry
  • Total-Factor Productivity Calculations
  • Cost of changes post design (Ohno’s Rule of Tens)
  • Definitions of  Overhead Recovery & Absorption Costing, Activity Based Costing and Throughput Accounting
  • Backflushing