Training on activity based Costing by Mr V Srinivasa Reddy -

Place - Kolhapur dated 18 March 2017.

Some highlights if the training are -

1) Activity based costing (ABC) – IT was about the correct loading of overheads on the new part while
giving new quotation. Many times we load the average or same overheads on all part , where as some
parts required lesser Resources and some required higher resources. So overheads must be loaded
based on the resources it eats. This will keep your bottle neck process efficient, which will help to
increase the productivity of the foundry thus increase in overall Contribution.

2) Direct cost - Raw material, Consumable cost, Power Cost.

3) Man power, Depreciation cost

4) Financial Cost, Admin Cost.

5) Maximize utilization of your resources

6) Bench mark for productivity - 30 T per man per month.

7) Utilize space effectively.

8) Create Space

9) Be Organized

10) Use horizontal and vertical space effectively.

11) Compare lowest and highest productivity sources to understand the source of improvement in the
process.

12) Always study lower point of productivity to learn the Improvement points.

13) China is getting orders at any Cost as they are sure of producing casting at lower price by adopting
ABC practices.

14) Do not stuck with old theory and constraints.

15) Adopt new thoughts, processes.

16) You can achieve what you can dream... So dream best...

17) Do not afraid of mistakes, but learn from mistakes to do better

18) Do SWOT analysis to understand your business condition?

19) See / Observe business from various angles...

20) Think logical

21) KPI / Profit Drivers / Summary of ABC -

a) Productibty

b) Casting weight

c) Sand to metal Ratio

d) Power Cost

e) Cost of poor quality

f) Yield %