Standard One – Finance
1. Financial Management – This session will develop an understanding that a budget is the central expression of how a firm’s finite resources will be spent. Fundamentally, budgeting is a method to improve operations through a continuous effort to specify what should be done to get the job completed in the best possible way. Budgeting should not be thought of as a device for limiting expenditures; instead it should be seen as a tool for obtaining the most productive and profitable use of the company’s resources.
2. Procurement and Acquisition of Equipment – (Includes Negotiations) - Most companies cannot raise prices on core business products and services. Therefore, reducing costs is the major focus for increasing profits. Increasing profits through cost reductions is an appropriate strategy for the 21st century. In the long-term, achieving lowest-cost with highest-quality producer status is a prerequisite for profits in the 21st century. Equipment, fleet and shop managers can reduce fleet owning and operating costs by millions of dollars and improve the quality of fleet services delivered by implementing negotiation skills learned in this section.
3. Risk Management – Managing risk is an essential aspect of any company’s future. This section will discuss the core of risk management for the equipment and fleet manager. Participants will learn about the scope of risk management and how best to minimize it through property coverage, general liability, auto liability, and cargo coverage. Other areas discussed include pollution incidents, worker’s compensation, and handling claims efficiently.
4. Warranty and Performance Guarantees – In this session participants will learn how warranties, performance guarantees, funding options and physical damage and liability insurances can be applied as effective financial and operational risk management tools. Warranties cover financial and operational risks associated with defects in assets’ and services’ materials and workmanship. Performance guarantees cover financial and operational risks associated with defects in assets’ and services’ merchantability and fitness for use. Funding options, which allow return without penalties, can be applied to eliminate all financial and operational risk exposures associated with a given asset. Insurance covers accident, physical damage, theft and liability exposures associated with owning, operating and disposing of assets and performing services.
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