Cost Management Input on our organization and its

impact on Fastfood Division &Ways of Improving

efficiency.

PRESENTED BY: SYLVIA & GIDEON

A Short definition of COST MANAGEMENT:

Cost management is the process of planning and controlling the budget of a business.

Its purpose is to ENSURE supply of funds from the right SOURCE at the right COST and the right TIME to the organization to meet its funding needs.

Having identified our high risk areas to be CASH & STOCK. As cost managers we PLAN & CONTOL the divisions budget in relations to its operations, by effectively and efficiently reducing its cost and increasing its profitability margin through our daily work flow which includes:

1. Pre-Audit functions: We check accounting records to establish the accuracy of figures, detect variances and ensure that transactions carried out and are properly recorded .e.g. compare Lodgments/evacuation, daily sales analysis/debit delivery note cash receipts/production records. we also carry out verification of assets.

2. Stock control: As a result of monitoring stock movement, we are actively involved in the purchasing, requisitions, receiving, storing, issuance and usage of stock for effective control.

3. Support operations: Despite the presence of, and in absence of the outlet managers we support in the administrative functions, by sharing knowledge and experience, manually assist in sales, production, and also do marketing for the division.

4. Set up and enforce compliance to internal control system: as an avenue to reduce wastage and pilferage in the division we have been able to set up controls that checkmates this vices and ensure that there re adhered to. E.g. Recording formats, DSA preparation and method of submission, product costing.

COST MANAGEMENT IMPACT IN THE FAST FOOD DIVISION THUS FAR…

A. As cost managers we drive down cost towards efficiency and profitability of the division. By ensuring the following:

INVENTORY ORGANISATION AND CONTROL: This is done by ensuring proper storage, preservation and usage of materials from the store to the sales point. Material usage is also controlled by the approval of requisitions and issuance of only materials that are of immediate use in proportion to product recipe having met laid down procedures and processes.

OPTIMAL UTILIZATION OF RESOURCES: We ensure effective utilization of financial resources which definitely gives maximum returns by increasing the productivity of the capital funds through avenues such as PRICING.

ADVISORY ROLE:As fast food cost managers we advice the fast food top management by representing important facts and figures regarding position and performance of various segments of the outlet to evaluate the progress of the business.

ACCOUNTABILTY: is of the highest gear, as staff are held liable for their actions, despite that we just don’t see accountability as answerability, but encourage staff to take ownership of the business which we do by explaining high cost implication not just to the outlet manager alone but even to the ditch washer at the pantry who can transparently tell the rate off wastage in the outlet. .

Our Input on the Business and its Importance:

STAFF DEVELOPMENT: Through conduction of trainings and participation in seminars.

AVOID COMMUNICATION GAP: Communication especially in cost management is very paramount to the organization, as these will cause break down in operations.

TIMELINESS: Quick response to operational demands e.g. Approval of documents.

DEVELOP EFFECTIVE AND EFFICIENT CONTROLS :knowing the importance of control to this business, I Look forward to developing a control on the consumption of AGO as this is one of our high cost centre.

INCREASE IN MANPOWER OR IT MECHNICS: There is need to increase our staff strength as some outlets exit with out cost management input which is a risk, or the use of cost management software which could help in the reduction of manpower.

TEAM WORK: There is neediness for team work within the staff of the department and the other staff of the organization because

Improving Cost Management Effectiveness & Efficiency.

THANK YOU

EXCEPTIONALLY YOURS.