Cost Engineering and Strategic Budgeting for Operational Control
Implementation of an accounting system for operational and investment budgets to calculate the estimated cost of products and services and prepare projected financial statements that enable prior control of the organisation.
TECHNOLOGY DESCRIPTION
Design and implementation of an accounting information system to calculate the estimated cost of products and services and conduct an internal analysis of the organisation to support efficient management decisions concerning resources, processes and business areas. Since each production and service provision process is specific to each organisation, sector, size, organisational structure and field of activity, individualised budgets will be implemented according to the company’s specific characteristics.
To adapt budgeting to the organisation, an exhaustive analysis of the accounting information system and the procurement, transformation, marketing and administration functions will be carried out prior to the design and implementation. Once this work has been completed, the necessary data will be available to begin designing an internal information system to forecast the data required to obtain the estimated cost of products and services.
The estimated data will subsequently be classified, tabulated and processed in order to allocate, locate and assign the estimated costs of material resources, labour and organisational departments to products and services.
Once the estimated cost of products and services has been obtained, the budgeting process will be reviewed to identify the necessary improvements to obtain more relevant and reasonable results.
Following implementation, monitoring will be carried out to introduce the necessary changes to the budgeting records, ensuring the efficiency and relevance of the information and the reasonableness of the estimated cost of the product or service.
TECHNOLOGY APPLICATIONS
Budgeting estimated production costs is a management necessity. Budgeting and estimating relevant, reasonable and timely internal information makes it possible to analyse the internal flow of production, marketing and administrative factors.
By using the proposed budgeting approach, organisations will have a tool that provides estimated data to optimise and rationalise the company’s internal processes, achieve efficiency in the consumption of material and human resources, and plan, organise and optimise the organisation’s departments and activities in order to minimise production costs. In this way, those responsible for the organisation’s internal management will have relevant information in advance with which to project future estimated product costs and determine whether the selling price allows an adequate profit margin to be obtained from producing and marketing the product or service. This enables prior control, making it possible to detect problems and adopt appropriate operational and tactical management decisions to address them before the product or service is produced and marketed.
ADVANTAGES AND INNOVATIVE ASPECTS
The use of the technology described enables an exhaustive, detailed analysis tailored to the specific and individual characteristics of each organisation. The proposed budgeting approach provides a logical, reasonable, reliable and timely estimated production cost, ensuring that the organisation’s managers can make efficient tactical and operational management decisions to maximise the margin on products sold and services provided.
Managers will be provided with a budgeting tool for entering, processing, calculating and analysing estimated production costs adapted to the specific characteristics and particularities of any type of organisation.
The technology is based on experience gained from implementation in various organisations across different sectors and fields of activity.
DEVELOPMENT STAGE
Fully available. This is consolidated knowledge that has been applied for years in real-world companies. The expert team conducts a specific study, design, review and follow-up process for each new knowledge transfer project.
APPLICATION SECTORS
- Industry and Manufacturing (Any subsector involving transformation processes).
- Services Sector (Consultancy, Healthcare, Hospitality, Logistics).
- Companies in Growth or Restructuring Phases.
- Public Entities and Non-Profit Organisations Requiring Efficient Fund Management.
PRINCIPAL INVESTIGATOR
José Antonio Cavero Rubio – Department of Economic and Financial Studies