Seminar Overview
This seminar is designed to help procurement and purchasing professionals develop a solid foundational understanding of cost structures. Participants will learn the distinction between cost and price, manufacturing flow and cost behavior, and the characteristics of quotations by purchasing category — building the mindset and vocabulary needed to question and evaluate pricing in day-to-day procurement work.
Do Any of These Challenges Sound Familiar ?
- Unsure whether a supplier’s quotation is reasonably priced?
- Lacking confidence in cost negotiations with suppliers
- Finding cost accounting principles difficult to grasp
- Unsure about what actually goes into processing costs
- New to procurement without any structured or formal training
- Inexperienced in using Excel for cost data analysis
Skills Gained
- Knowledge: Core concepts of cost vs. price, cost-based and non-cost-based pricing principles, and how costs arise throughout the manufacturing process
- Reading: Understanding of RFx processes and the ability to interpret quotation structures and content patterns by purchasing category
- Perspective: A habit of questioning "why this price?" and the analytical lens needed as a starting point for price assessment
- Foundation: The conceptual grounding and terminology required to advance to the Advanced Masterclass
■Information
Program
１. The Cost
- Cost vs. Price
- Cost-Based and Non-Cost-Based Principal
- Cost-Flow in Production
This chapter will provide a structured overview of the fundamental concept of “cost” in the manufacturing industry. We will also learn how costs of production are linked to a company’s profit and loss statement.
２. Price Quotation
- RFQ/RFQ and its contents
- RFx
- Quotation by Category
Some quotations from your suppliers contain detailed cost breakdowns while others do not. Why is there such a difference ?
In many cases, the level of detail depends on the type and characteristics of the purchased item.
This chapter organizes the trends in the content of quotations based on the type and characteristics of purchased items.
３. Basic Cost Analysis
- Matrix of Cost Analysis Approach
- Analysis by Cost Accounting
- Structure of Cost
- Material Cost
- How to calculate material costs
- Process Cost （Machine / Man Rate）
- Structure of Process Cost
- Machine Rate, Man Rate
- Points of Cost Reduction
In this chapter, we will learn and understand cost accounting approach. You will also learn the structure and theory behind cost calculation, as well as key practical perspectives for applying these concepts effectively in real business situations. We use Excel spreadsheets that contain embedded formulas.
?Quick Estimation of Rate
Exercise①： Material Cost Calculation
Exercise②： Equipment depreciation rate
Exercise③： Equipment repair rate
Exercise④： Man Rate
Exercise⑤： Process Cost Rate (Excel Template)
４. Closing
・ Q&A
Ex.1）How Japanese buyers challenges cost down compared to Western country's buyers ?
Ex.2）How Japanese suppliers are different from Western country's suppliers ?
?Takeaways
✓ RFI, RFQ Template（Word）
✓ Quotation Template（Excel）
✓ Charge Estimation Sheet（Excel）
Detail
Provided by
Kenji SHINKAI
Global Sourcing Academy & Office, Representative
Target Participants
- 1 - 3 years of experience in purchasing and sourcing.
- Procurement and purchasing professionals who are new to the role, or those who have relied on experience and intuition for pricing decisions and wish to build a structured, foundational understanding of cost principles and quotation analysis. (Beginner level)
Place
Your office or Sites
Estimated Time
3 to 4 hours
Price
- Transportation expenses and accommodation costs (when travel requires an overnight stay), with lodging expenses limited to JPY 15,000 (excluding tax) per night.
- Course Fee (excluding tax): JPY 23,000 per participant (If you feel that the course did not deliver the value you expected, we will refund the full course fee. Register with confidence.)
How to Apply
We are happy to send you some samples. Please use the button on the right to contact us by email.