1. CMA A.P.Madhu, Mcom, MBA,PGDT,FCMA,CMA(Aus),CMA(USA)
Effective Cost Management and Consistency in the maintenance of Cost Records
CMA A.P.Madhu,
Mcom, MBA,PGDT,FCMA,CMA(Aus),CMA(USA)

2. What happens to the Business if no proper records are maintained ?
Are we satisfied in running an Organisation without information?

3. No , not at all

4. What are the areas to be covered ?
Records for Capturing the 4 Ms
(1) Cost of Materials (2) Cost of Manpower(3) Cost of Machines (4) Cost of Funds ( Money involved in each element of Cost ) .
Records for Capturing Inefficiencies - Wastage of Materials , Time etc

5. Cost Elements and Effective Management of the same - Records to be maintained
Revenue - Sales or Services
Material Cost
Packing Material Cost
Transportation - Both Inward & Outward
Employee Cost – Idle time – Overtime etc
Utilities
Direct Expenses
Repairs & Maintenence

6. Cost Elements and Effective Management of the same - Records to be maintained
Overheads - Factory , Admin , Selling & Distribution Oveheads
Research & Development Costs
Quality Control Costs
Pollution Control Expenses
Records on Royalty or Technical Know-how
Interest & Finance Charges

7. Other Records - Effective Management of the same - Records to be maintained
Capacity Utilisation
Export Expenses / Export Incentives
By-Products
Records on Waste – Scrap – Spoilage – Defective
Inventory Records – Perpectual Inventory system

8. Some Interesting factors affecting cost
Capacity utilization
Time Management
Waste Management
Employee Turnover
Communication
Emotions
Working environment
Team work

9. Can we collectively identify and think off reducing costs in some areas which we can ?

10. Areas …….
Electricity – TOD Pattern / introducing CFL lamps – Solar Energy
Interest Cost – avoiding delay in submitting stock statements , renewal etc
Petrol , Diesel expenses in Vehicles used
Communication expenses - Postage , Courier etc
Printing & Stationery - Printouts on both sides of A4 paper
Rent paid v/s space utilization
Timely renewal of licenses to avoid unnecessary penalties contd…

11. Telephone Expenses - Corporate plans , addl payments for ring tones / music etc
Travelling Expenses – TA/DA – eg : Propriety Audit
Insurance
Management of Stock – “stock = cash”
NPAs

12. Some techniques to become cost competitive
Structured review mechanism
Budgetory control
RCA – Root Cause Analysis
Exit Interview & Training , BSC etc
5 S ( Seiri-Clearing , Seiton-Organising , Seiso-Cleaning , Seiketsu-Standardising , Shitsuke-Training & Discipline )

13. YES!!!
We should achieve cost competitiveness and thereby improve our profitability through KASH generating employees who will work as a TEAM to achieve SMART goals and objectives of the business

14. THANKYOU