Project Cost Management Course

Project Cost Management

Increasingly tougher economic conditions means increasingly tighter project budgets, and a more aggressive focus on meeting a financially on-target delivery.

Every project involves cost management. Whether its delivery is internal or external to the organisation, every project has a cost implication to the organisation’s bottom-line profit, cash flow and overall financial well-being.

Poor estimates, unrealistic budgets, ROI’s falling short of expectations, poor change control and generally poor financial management usually reflect a lack of knowledge and awareness of the processes, tools and techniques that are available for managing project costs effectively.

About this course

Our practical workshop focuses on providing the knowledge, techniques and practical application of project costing tools to support participants in successfully managing project cost, thus ensuring the maximization of business returns.

Participants will be guided through a practical and best practice process-oriented approach to managing cost, and will take back to the workplace the ability to apply this knowledge within a realistic and structured framework.

Workshop Objective

Participants will learn to apply proven methods for preparing estimates, developing and tracking budgets, and use Earned Value Analysis (EVA) to ensure that the forecasted benefits and Return On Investment (ROI) are achieved.

How this course is delivered

Options & Customisation

Optional training modules can be added to this workshop:

  • Additional day to cover other aspects of project management.
  • Additional 1 day overview of Microsoft Project; a powerful tool for helping you to estimate, plan and control your projects.
  • Other options available upon request

This workshop can be cost effectively customised to your business environment using a project scenario from your workplace.

Workshop Content Summary

Introduction to Managing Project Cost
  • The importance of managing costs effectively in a project.
  • The Three Cost Management Processes:
    • Estimate Costs, Determine Budget, Control Costs
  • Lifecycle costing and activities

Financial Considerations

  • An overview understanding of the important financial factors in any project undertaking
  • An awareness of the types of costs inherent in projects, as well as the types of benefits/returns to be gained by them:
  • Costs: Sunk, Variable, fixed, Direct, Indirect, Opportunity, Depreciation
  • Returns: ROI, PV, NPV, IRR, Payback Period, Benefit Cost Ratio

Getting Ready to Estimate

  • An appreciation for the foundations of effective cost estimating:
  • Effective Scoping, Building a detailed Work Breakdown Structure, Risk and reserves Planning
  • Practical revision of the essential steps for creating a work breakdown structure and considering risks

Cost Estimating

  • What is involved in cost estimating
  • 3 Key project estimate types and respective accuracy levels
  • Basic Estimating tools and techniques
  • 3-point, Bottom-Up, Analogous, Parametric, effort and resource, time-cost-quantity
  • Wideband Delphi project estimation technique

Cost Budgeting

  • Presenting the project budget using graphs, spreadsheets and Microsoft Office Project
  • Guidelines for producing accurate bids

Cost Control

  • Introducing the project Cost Management Plan
  • Tracking and measuring performance with Earned Value Management (EVM)

 

 

 

Outcomes & Certification Eligibility

Successful completion of this workshop will enable participants to:

  • Clearly understand the cost management discipline and process
  • Recognise potential pitfalls and understand avoidance strategies
  • Use a cost management estimation and control plan
  • Understand the process and importance of:
    – Cost Estimation
    – Cost Budgeting
    – Cost Control

Facilitators of this workshop will use a scenario and case study delivery approach to provide participants with a ‘hands-on’, multi-faceted and challenging learning experience.

Course Prerequisites

General Project Management knowledge and experience is essential for attending this workshop. Participants will, ideally, have successfully completed a Project Management Fundamentals workshop and understand the crucial role that cost plays within the project management environment.

Pre-Course Work

In 200 words or less, describe your current approach to Project Cost Management. Please provide a very high level overview of the critical success factors that contribute to your planned delivery.

Course Dates

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There are currently no dates scheduled. Please contact us today for future availability.

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