Diploma in Open Book Cost Management
Transparency of costs and effective open book cost management is essential to delivering efficiencies and successful collaboration. In our experience, most clients and contractors do not properly interogate or understand their suppliers costs. The result is, too often, an adversarial environment and to drive improvement through a collaborative contract. This course introduces delegates to how to do open book properly. We run in a workshop style course, with case studies and group exercises to examine open book techniques appropriate to different forms of contract.
Poor open book processes result in systems an administrative burden and often generate cost increases. The course introduces delegates to:
• Techniques for achieving and demonstratng cost and value improvements.
• How to structure and present financial information
• Efficiency processes for cost management
• Techniques for reducing costs whilst increasing supplier margins
• Techniques for effective negotiation and management of risk items
Delegates will leave with a firm understanding of the techniques required to manage an Open Book Contract effectively.
The Open Book Cost Management Diploma aims to:
• evaluate the advantages and disadvantages of using Open Book cost management when evaluating the different forms of contract available.
. identify when Open Book Accounting Cost Management should be applied.
• assess the implications for risk management within an Open Book arrangement.
• identify how cost savings can be gained through using open book cost management
• analyse how quality can be achieved and measured through incentivisation and Key Performance Indicators.
• explain how to implement cost models including target cost setting, reporting of actual costs etc for contracts in co-operation with Contractors and Consultants.
• implement a range of lean tools and techniques to manage to Open Book process.
Mandatory Units (35)
Candidates must successfully complete the following units:
| Course ID | Units | Credits |
 CFC |
Collaborative Forms of Contract | 3 |
| LS 9 |
Collaborative Planning and Project Management | 4 |
| LS 1 |
Lean and Continuous Improvement | 3 |
| OBCM 2 |
Open Book Cost Management Applications | 3 |
| OBCM 1 |
Open Book Cost Management Principles | 3 |
| LS 5 |
Principles and Applications of performance Measurement and Benchmarking | 3 |
| LS 12 |
Risk Management (FMEA) and Plan-to-Protect | 3 |
Optional Units
Dip OPCM optional units
| Course ID | Units | Credits |
| CP 1 |
Collaborative Procurement Strategies | 3 |
| NEC 1 |
Introduction to the NEC Contract and Short Form | 3 |
| NEC 2 |
NEC – The Role of the Programme | 3 |
| NEC 3 |
NEC – The Role of the Project Manager | 3 |
| LS 4 |
Process and Value Stream Mapping | 4 |
| SCM |
Supply Chain Management | 3 |
| LS 11 |
Value Management and Value Engineering | 3 |