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Tailored towards operations managers seeking to boost their financial skills to improve their organization’s performance, this online course will help you understand how your decisions can improve efficiency, drive successful projects, and impact the financial performance of the business.
- 35 lessons
- Understand the fundamental financial concepts in business and their uses.
- Interpret data on financial reports and how these reports impact each other.
- Understand how budgets and estimates are used to plan and control costs.
- Utilize ratios and measures to gain insight into profitability and performance.
- Analyze cost behavior, track operational expenses, report on cost variance and forecast expenses.
- Delve into operations finance principles: product cost, inventory cost management, make versus buy
- Earn 14 contact hours or PDUs toward your project management education for certification with PMI.
The Finance for Operations Managers course builds on the 16 lessons from the Finance for Non-Financial Professionals course with an additional 19 lessons focused on Operations Managers.
Once enrolled, our friendly support team and tutors are here to help with any course related inquiries.
Amount and Timing
There are two equally important attributes of every financial transaction, the amount and the date it occurred. Both are required for financial reporting and analysis.
Video time: 05m 12s
Revenues and Profits
Revenue is the amount of money that a company receives for selling its goods and services. Profit is the amount of money that a company earns after it has paid all its expenses.
Video time: 04m 01s
Cost and Investment
Both costs and investments result in spending money. Costs are spending money to run the business and investments are spending money to prepare for the future.
Video time: 04m 10s
Operations and Ownership
Operating managers are responsible for managing the day to day business operations. Owners are ultimately responsible for success or failure of the business. Ideally these two groups are working closely together.
Video time: 04m 54s
Earnings Statement Part 1
The Earnings Statement is a financial report that shows business profitability over some time period.
Video time: 04m 04s
Earnings Statement Part 2
The Earnings Statement is a financial report that shows business profitability over some time period. This lesson will focus on the revenue portion of the Earnings Statement.
Video time: 05m 19s
Earnings Statement Part 3
The Earnings Statement is a financial report that shows business profitability over some time period. This lesson will focus on the expense portion of the Earnings Statement.
Video time: 05m 53s
Balance Sheet Part 1
The Balance Sheet is the financial report that shows what the business is worth at some instant in time.
Video time: 06m 08s
Balance Sheet Part 2
The Balance Sheet is the financial report that shows what the business is worth at some instant in time. This lesson will focus on the Asset side of the Balance Sheet.
Video time: 04m 50s
Balance Sheet Part 3
The Balance Sheet is the financial report that shows what the business is worth at some instant in time. This lesson will focus on the Liabilities and Equity side of the Balance Sheet.
Video time: 04m 41s
Cash Flow Statement Part 1
The Cash Flow Statement is a financial report that shows how well the company was able to convert business activity into cash over some time period.
Video time: 05m 00s
Cash Flow Statement Part 2
The Cash Flow Statement is a financial report that shows how well the company was able to convert business activity into cash over some time period. This lesson will focus on sources of cash.
Video time: 05m 09s
Cash Flow Statement Part 3
The Cash Flow Statement is a financial report that shows how well the company was able to convert business activity into cash over some time period. This lesson will focus on uses of cash.
Video time: 05m 07s
Relationships Between Financial Statements
Each of the financial statements provides insight on an aspect of the business financial status and structure. These accounts across the statements are related, and changes to values will likely impact multiple statements.
Video time: 04m 50s
Ratios and Measures
When calculating profitability, the different profit measures provide insight into the most significant factors that are creating corporate profit or loss.
Video time: 04m 33s
Return on … Ratios
Return ratios are normally used for comparing companies or comparing the past performance of a company with its present performance.
Video time: 04m 15s
Working Capital Measurements
The working capital and turnover measurements are used by operations managers to track the efficiency of the operations.
Video time: 04m 58s
Cost Account Characteristics
It is important to know what category of account you are working with when budgeting and tracking spending. The different categories of accounts behave differently so knowing which category you are working with will provide insight into the budgeting and tracking process.
Video time: 05m 11s
Strategic Planning and Budgeting
Most businesses prepare a strategic plan that projects how the company will achieve or maintain a competitive advantage. It is used to guide the budgeting process.
Video time: 04m 48s
Business budgets are the financial plan of the business. They are normally created for one year at a time and allocate the spending and revenue across business units, departments and accounts.
Video time: 05m 23s
Estimating is used when planning and budgeting business costs or revenues. The estimate needs to include both the amount and the timing of the transaction.
Video time: 05m 21s
Capitalization and Amortization
Whenever a company purchases an asset with long term value, it must be capitalized. Every asset that is capitalized is then depreciated, which is special form of amortization.
Video time: 04m 52s
If you capitalize a fixed asset, you are required to depreciate it on the business financial books.
Video time: 05m 35s
Budget baselines should be used if costs must be controlled within a department or on a project.
Video time: 04m 47s
Developing a Business Case
The business case provides the business rationale, normally in financial terms, of why a project should be done.
Video time: 05m 53s
Return on Investment (ROI)
Return on Investment is a financial calculation to determine whether the business benefit of an investment is worth the cost.
Video time: 05m 51s
The Payback Period is a Return on Investment analysis that determines the amount of time needed to accumulate enough benefit to pay for the cost of the project.
Video time: 05m 38s
Variance and Forecasting
The business financial system records costs based upon the cost account type. The costs are often accrued near the end of fiscal quarter or year.
Video time: 05m 13s
Tracking Operational Expenses
Operational expenses are the normal costs of the business and are tracked by function and cost type. They are either reported as totals on a per unit (unit cost) basis.
Video time: 04m 44s
Cost Variance Reporting
Cost variance reporting is the calculation and reporting of costs that are different than what was expected by the budget or standard.
Video time: 05m 17s
Financial forecasts for the final cost of activities are created to allow activity managers to make wise business decisions. The approach used for forecasting should vary based upon the nature of the activities being forecasted.
Video time: 05m 14s
The business circumstances will dictate how best to analyse and assess product cost. Factors to consider are the manufacturing location, material and labor content, and product configurations.
Video time: 05m 24s
Inventory Cost Management
Companies that manufacture products must manage their inventory to keep costs low but availability high.
Video time: 05m 37s
Make versus Buy
Make versus Buy is a decision process to determine if a product, or part of a product, should be made by the company or by a supplier.
Video time: 04m 52s
Productivity is a term used to indicate improved efficiency which results in more output for the same input.
Video time: 05m 10s