Strategic Cost Management
Former World Bank expert and currently a faculty at IIM Ahmedabad, Prof Rajendra Patel will offer insights to management executives and students on various aspects of cost management
Noida, 17 March 2016: In an effort to help improve management practices in the industry and devising better cost management strategies, leading management institute IMS Noida today began its three-day periodic Management Development Programme that brings together leading academics, industry insiders and experts in the field.
This year’s programme is discussing Strategic Cost Management, a crucial subject in management studies that pertains to the economics of reducing costs without compromising on quality and delivery.
Professor Rajendra Patel from IIM Ahmedabad will offer his valuable inputs and new perspectives on methods and techniques for appropriate cost planning, importance of managing costs and aligning them with the business strategy of an entity.
The forces of globalization, liberalization and privatization have not only knitted the world economies closer together but the spill-over eﬀects of the changes happening in world are today felt more strongly and swiftly by all the economies. It is cost effectiveness that prompt hundreds of western companies to outsource jobs to low-cost destinations like India. Cost effectiveness is the key to competitiveness in a highly connected world like ours. Hence, there is greater need today to recognize different costing systems and strategies and devise better managerial decisions and business strategies to constantly remain cost effective.
“As a discipline, management studies needs to constantly evolve itself to include in its paradigm the changing needs of the time, which keep throwing up new challenges into the discipline. Cost management is an area of management that needs constant re-thinking and evolution to keep tiding over the rising costs. Today, Indian organizations may be benefitting from the outsourcing boom because of low labor costs; however, the wages are bound to increase and they need to devise other strategies to keep costs low and their competitive advantage high. The management development programme is an initiative from our end to help the management sector improve on various fronts. This year we are discussing of cost management as it forms of the basis of any enterprise and management,” said Dr KJS Anand, Executive Director, IMS Noida.
The first day of the programme began with inauguration and lamp lightening by Dr Debarshi Mukherjee, Chairperson, Centre for e-Commerce, IMS, Noida and Dr KJS Anand, Executive Director, IMS, Noida. The day introduced the participants to the basics such as costing terminology, cost objects, cost drivers, break-even analysis using concept of relevant costs, conventional method of indirect cost allocation, activity-based costing in product industry, service industry, relevant costs for alternative choice decisions etc. While the day 2 of the programme will discuss aspects of Management Control & Organizational Performance, ProPt Centres & Transfer Price issues, Analysis of Financial Performance, Corporate Performance Measurement in Multi Divisional Companies, Performance Measurement – Balanced Scorecard – Beyond Financial Numbers, Day 3 will deal with issues Target Costing ,Value Engineering, Just-in-Time, Theory of Constraints, Life Cycle Costing etc.
“With India emerging as the third largest startup ecosystem in the world, there is growing demand for efficient and innovative management graduates who are adept and trained at devising new strategies to resolve problems. While globalization has made more markets easily available, improved connectivity and helped fasten business processes, it has also increased competition and challenges to new businesses manifold. Hence, management development programmes are necessary to provide relevant training to the executives of different sectors of the economy operating at different levels in the organizational hierarchy, through real-world case studies, group discussions, and interactive presentations. I am honored to receive to the opportunity from IMS, Noida to share my knowledge and experience with all the management people,” said Prof Rajendra Patel.
A visiting faculty at IIM Ahmedabad for Finance & Accounting now and a past association of twelve years as a regular faculty, Prof Patel specializes in management planning and control. He worked closely with World Bank in debt rescheduling and providing balance of payment support for central African countries as a senior manager with Peat Marwick Mitchell & Co during 1978 -1985 and with Rolls Royce plc group as Finance director for over fourteen years. He has to his credit over 100 training programmes in India and Asia Pacific region.