AFC-107 OPERATIONAL BUDGETING AND FINANCIAL COST CONTROLLING

Operational budgeting and financial cost controlling covers the theoretical principles and pragmatic application of budgeting and controlling to the petroleum businesses. Participants may choose a case study from a number of real-life exploration, production, facilities, and general business management situations, or they may bring the details of one of their own current projects. Because of this experience with practical situations, participants may use these business management principles right on their first day back on the job.

 

Topics:

1. Understand budgeting of OpEx (operating expenses), CapEx (capital expenditures) and O&Ms (operations and maintenance costs) and cost controlling concepts

2. Determine the inputs and monitor the budgets

3. Trace all relevant inputs to the proper object identifier to better manage budgets

4. Build your own budget

5. Develop actionable key goal indicators (KGIs) and key performance indicators (KPIs)

6. Design budget management control system

7. Leverage the principles of zero-based budgeting and its development and implementation

8. Determine parent-/root-causes of budget variances using the proper tools and techniques

9. Manage and not mismanage operating run-rates/costs

10. Develop excel-based tools for managing and controlling costs