Workshop on “Target Costing and Kaizen Costing” – Cost Management Methodologies-
16 May 2008: Auditorium, CMA Tower A-2E, Sector-24, NOIDA.
In order to satisfy customers, a firm needs to maximize its efficiency throughout its entire value chain. If efficiency is not maximized throughout the entire value chain, costs might rise above those of rivals and it might be difficult to recoup these higher costs through increase of price. It is evident that management accounting has greatly evolved in response to the shift in business environment. New ranges of approaches and practices like Target Costing and Kaizen Costing have emerged for strategic positioning or strategic cost management. Closely associated with the determination and exploitation of competitive advantage, accounting for strategic positioning aims to generate information which supports senior management’s attempts to achieve or sustain a competitive position in the market, relative to competitors.
Emerged in the 1960s at Toyota, Target Costing is one of the strategic cost management approaches better suited to strengthen a company’s competitiveness in meeting today’s business challenges. Unlike the conventional cost-plus approach, Target Costing is an “open system” which links external and internal factors from the inception. The activities to optimize the key success factors (cost, quality, innovation, and time) of a product are carried out mainly at the development and design phases, involving a multi-functional team of a company’s participating functions as well as other members of value-chain, mainly the suppliers.
Target costing approach is widely used in various manufacturing industries such as automobile, electronic, electrical, precision equipment and many other process industries across the globe.
Once the product is developed, firms introduce process improvement methods to carry the profitability further through the manufacturing cycle. Often the improvement efforts are in isolation without their impact being traced to the bottom-line. Kaizen Costing fills this gap.
Kaizen costing maintains the current cost levels for currently manufactured products and works systematically to reduce costs to desired levels. The main objective of Kaizen costing is the relentless pursuit of cost reduction at every stage of manufacturing to help close any gaps between target profits and the current estimated profits.
Employed together with Target costing, Kaizen costing helps achievement of cost reduction goals in the entire product design-development-production cycle.
In order to give an insight on the two cost methodologies and help to develop a Model for Strategic Cost Reduction as a Managerial Response to Market Orientation, CII is organizing a One Day Workshop on Target Costing and Kaizen Costing.
The details of the programme are as follows:
Date : Friday, 16 May 2008
Time : 0900 hrs – 1715 hrs
Venue : Auditorium, CMA Tower, A-2E, Sector-24, Noida- 201301
Topics to be covered
Ø Basics of Cost Management
Ø Cost Management during Design phase
Ø Cost Management during Manufacturing phase
Ø Kaizen Costing v/s Standard Costing
Ø Inter-organisational Cost Management
Objective
The programme has been designed keeping in mind the increasing importance of Design, Operations, Marketing and Costing. Through this programme we seek to focus on those factors, tools and other sources of information that would help you to take a decision, a decision, which helps in better and sound Cost Management.
Who Would Benefit
CEOs, CFOs, CIO’s, Managers, businessmen, Cost Centers, Cost Analysts, executives and entrepreneurs dealing or concerned with strategic planning and implementation.
Faculty
Mr. M Hariharan FCA, CWA, has over ten years of consultancy experience with a variety of clients in both manufacturing and service sectors. His principal interest addresses the impact of cost information on the managerial decisions. He has rich experience in designing Cost Information Systems aligned to the strategic focus of the business.
He believes, in the word “participant”. He is renowned for his innovative approach to make the participant unravel ideas and concepts. He has “explored” cost and constraint management issues with business executives throughout India through various forums. He has presented papers in cost conferences and his articles on cost management issues have been published in business newspapers. He is a visiting faculty at SP Jain Institute of Management and Research, Mumbai and Dubai.
Registration
Members/Non-members are requested to take advantage of this unique programme by registering / nominating suitable persons from the organisation. Please note as limited number of seats are available, prior registration is necessary. The registration would be on first come first serve basis. Kindly send the attached registration form (duly filled) to confirm your participation latest by 14 May 2008.
Kind regards,
R S Bidesi
Chairman
CII – Western U.P. Zonal Council
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For further details please contact:
Vinay Patel
CII-Western UP Zone
CMA Tower, A-2E,
Mezzanine Floor, Sector-24
Noida – 201301, UP
Ph: 0120-4231957, 4345972, -73
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Vinay Patel
Confederation of Indian Industry
Western U.P. Zonal Office
CMA Tower, A-2E, Mezzanine Floor, Sector-24
Noida (U.P.) – 201301
[email protected]
tel: +91-120-4231957
fax: +91-120-4345970
mobile: +91-9891817844
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