Course Description

 

This session provides an overview of the tools and the skills to build world class standards into your planning, budgeting, performance measurement and reporting system and will discuss new and best practice techniques, explain how they complement the traditional financial planning tools, and introduce new concepts for measuring and reporting performance and shareholder wealth creation. Important elements of this programme include:

·         Making your budgeting process more cost effectively

·         Motivate managers to "buy in" to the budget process

·         Many case studies and illustrations of real companies will be used to help delegates understand how to apply different planning, forecasting and analysis techniques

·         Participants will also be given a detailed set of handouts that will enable them to review the topics covered at a later date.

 PRE-REQUISITE

·         Participants should have a basic understanding of financial statements

·         Delegates will be asked to bring a spreadsheet of their organization’s budget structure to work on during the programme 

Course Objective

 

·         Implement advanced planning and control techniques into your budgeting process 
Integrate the budgeting process with the development of the company’s long-term strategic vision

·         Provide a decision support structure that provides timely and useful information to decision makersSuccessfully build an integrated planning, budgeting and reporting process

·         Forecast costs and revenues with greater confidence

·         Apply management tools to the budgeting process that contribute to strategic goals

·         Effective manage the budgeting process

·         Identify key performance indicators for effective and focused decision making

·         Increase profitability and performance through stream lined planning and reporting

Who Should attend?

·         Professionals responsible for budget preparation and management reporting

·         Process owners who require a more in-depth understanding of integrated planning and budgeting techniques, along with Financial planners and cost analysts

·         Anyone with direct planning and budgeting responsibility, as well as advisors, accountants and business consultants

 

 

 

Course Outline

 

Day 1

·         Budgets in Today's International environment

·         Organizational Planning and Control Framework

·         The Product / Information / Decision Support Cycle

·         Strategic, Tactical, and Operational Forecasts

·         The recognition of risk in Models

·         Using Budget Models for Simulation Purposes

·         The Drive toward Shareholder Value (EVA®)

·         The Strategic Plan

·         The purpose of planning and budgeting in business

·         Defining the strategic approach to business planning

·         Defining strategic assumptions

·         Building the strategic planning model using financial data

·         Various strategic and tactical approaches to business planning

·         Defining the Decision-Support model: Assumptions/Goals and Key Success Factors

 

Day 2 - Analyzing the Historical Data Using Excel®

·         Recognizing the Basic Patterns Inherent in Historical Data

·         Using the Exploratory Data Analysis Tools Available in Excel®

·         Development of Time Series Models using histograms, moving averages, exponential smoothing and regression analysis

·         Using Regression Analysis as a predictor and estimator

·         Mastering the use of Exponential Smoothing as a Data Analysis tool

·         Single Regression vs. Multiple Regressions

·         Validation of Time Series Analysis

 

Day 3

·         Approaches to Budget Development

·         Zero Base Budgeting

·         Activity based Budgeting

·         Rolling Budgets

·         Operational Unit Budgeting

·         Programme budgeting

·         Developing the Cash Budget

·         Using Activity based Budgeting

·         Developing the ABB application model

·         Budgeting for Processes rather than Departments

·         Defining Key Cost Drivers

·         Defining Key Activities

·         Development of ABB Cost Standards

·         Developing the Activity-Based Budget

 

Day 4

·         Strategic and Operational Cost Analysis Techniques

·         Cost behaviour and breakeven analysis

·         Identifying fixed, variable and semi-variable costs

·         Application of Regression in the development of budgets

·         Building the financial simulation model using articulated financial statements

·         Building the financial simulation model using deterministic simulation

·         Building the financial simulation model using probabilistic (Monte Carlo) simulation

·         Developing Manufacturing Standards

·         Material Standard Development

·         Labour Standard Development

·         Factory and Corporate Overhead Standard Development

·         Variance Analysis

 

Day 5 - Defining and Testing Optimization Techniques in Models Using Excel®

·         Basic Structure of All Optimization Models

·         Different Forms and Applications of Optimization Models

·         Developing a Financial Optimization Model

·         Performing Sensitivity Analysis of an Optimization Model

·         Interpreting the Solution of an Optimization Model to a Non-technical Manager

·         Lessons Learned and Lessons to be learned