 | | | | Williams Controls Costs while HemCon Bandages ® Control BleedingWhen Mike Williams, '84, says he likes control, he talks about knowing what you want to do with your career, professionally developing to make it happen and liking what you do.
 |
|
Mike Williams, HemCon, speaks to an accounting class.
|
"I like accounting," said Williams, vice president of finance for HemCon, Inc. "When executives ask 'can we spend that money?' that is control!"Speaking to a class about advanced cost management, Williams speaks from experience.
He's been with nine companies in 23 years including Micron, Del Monte Foods, Gerber, Williams Controls and more. Currently, with HemCon, a privately funded venture, he's working for his third startup.
The purpose of cost accounting and cost management, says Williams, is to be compliant with government regulations and assist in management decisions. Inventory valuation is also critical.
To demonstrate his point, he walked students through a "Let's Cost a Sponge" exercise. HemCon's flagship product is a bandage manufactured from a natural product called chitosan which is derived from shrimp shells. The bandage, sold primarily to the military and now entering the civilian Emergency Medical Services market, controls severe external hemorrhage, according to Williams. Williams worked with students to determine the cost of the gelatin to make an imaginary sponge and the total cost of producing the sponge. The example "sponge" used raw materials such as cellulose, glycerin, sodium hydroxide and mixer and dehydrator equipment in the creation process. Throw in labor, utilities, depreciation and other expenses and the students had a multi-phased exercise in advanced product costing.
"The bandage is working well in Iraq and Afghanistan," said Williams. "For example, normally if a soldier gets his arm severed, they may bleed to death in 3-5 minutes. These bandages control bleeding and have saved more than 60 lives so far."
Encouraging students to make the most of their lives and take control, Williams rewarded students with candy bars for class participation and suggested ideas on how they could further their education. As for Williams, he'll be working on helping HemCon become revenue positive by helping to continue to control costs.
|
