JCB683 - Improving Capacity Investment and Consumption

Course Description

Capacity is the volume of product or service output that an organization can create. While investing in capacity is expensive, once purchased, using it is often much cheaper than it seems. To figure out when to invest in capacity, how to use it, and when to leave it idle, you need an understanding of cost accounting to look behind the numbers reported on financial statements.

In this course, you will analyze investment in capacity both quantitatively and qualitatively. You will determine the profitability of investing in new capacity, using existing capacity to take on incremental work, or leaving it idle. Finally, you will apply a significant advance in cost accounting — activity-based costing — which will help you work with customers and suppliers to create more value with less capacity. Along the way, you will utilize unique deliberation guides and spreadsheets to determine the best ways to improve both capacity investment and use and bring valuable skills back to your organization.

The following courses are required to be completed before taking this course:

• Improving Governance
• Improving Margins

Faculty Author

Benefits to the Learner

• Evaluate organizational investments in capacity both quantitatively and qualitatively
• Address capacity challenges resulting from changing volumes and costs
• Allocate the costs of idle capacity to clients or internal business
• Utilize activity-based costing to reveal hierarchies and clusters that can reduce organizational costs

Target Audience

• Managers and leaders responsible for a business unit
• Managers and leaders seeking to improve organizational performance
• Individuals influencing the design of accountability systems

Applies Towards the Following Certificates

• Management 360 : Management Accounting
• Management Accounting for Leaders : Core Courses