Cost Management - CM

Course summary
5 days
4,240 - 5,035 USD
Houston, London
Open / Scheduled

Course description

Cost Management - CM

Few problems threaten the petroleum businesses more than uncontrolled costs. Economic realities have made it necessary for most companies to operate with a lean and mean philosophy.

Industries previously operating under regulatory rules, which allowed them to pass on all costs to the customer, now face a changed regulatory environment. As the price of our products fluctuates widely, the most vulnerable companies are those that are ineffective in understanding and managing their costs.

Suitability - Who should attend?

Operating managers, field personnel, project managers, technology managers, budget managers, or practically anyone in the company wanting to manage costs in a more efficient and effective manner. A familiarity with finance is helpful but not required.

Training Course Content

  • Raising your own cost management awareness
  • Defining costs, classifications and terminology in an oil and gas sense
  • Classifying the different costs
  • Determining cost objects, cost drivers and their behaviors
  • Accurately and effectively assigning costs for an E&P company
  • Properly determining the break-even cost and volumes
  • Effectively using variance analysis budget for monitoring performance
  • Analyzing different types of cost management systems
  • Measuring activities and their performance
  • Using Activities Based Management (ABM) to monitor costs and processes
  • Building and using a practical activity dictionary
  • Using value added costs versus non value-added costs for improvement
  • Tying costs to revenues to more effectively measure profits
  • Distinguishing between cost effectiveness and cost efficiencies
  • Using 4 dimensional costs
  • Developing productivity measurements that work
  • Operating Cost Management
  • Using the budgets efficiently and effectively
  • Using GAP analysis in measuring productivity of costs
  • Support departments cost allocations
  • Transfer pricing
  • Measuring and controlling productivity
  • Optimizing costs in the supply chain
  • Capital Cost Management
  • Capital investment decision making and the effect on cost management
  • Developing and analyzing capital investment projects
  • Replace versus maintain
  • Life Cycle Costing
  • Analytical techniques for managing costs
  • Managing personnel, logistics, purchasing and material costs effectively
  • Sensitivity analysis for optimizing costs
  • Using different scenarios to more effectively manage costs
  • Performance measurement
  • Incorporating HSSE into the cost management system
  • Defining preventive and reactive costs

About provider

PetroSkills - Oil & Gas Training Courses

PetroSkills was founded in 2001 as an alliance between BP, Shell and OGCI, aiming to accomplish a mission of vital importance for the future of the Oil & Gas industry. PetroSkills provide high quality professional training and courses that are...

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Average rating 4.3

Based on 6 reviews

Budget Team Leader
All subjects were well developed.
Contract Manager
The interactive nature of the discussion that made the everyday occurrence or experience at work gain more perspective in terms of significance and impact in relation to the course!
All good.
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