Understand the benefits of good project cost control for successful project outcomes
Use best practice to minimise costs and negative impacts
Describe a typical project cost management life cycle
Explain the action required at each phase of the project cost management life cycle and understand the significance of each phase
List the key attributes of cost necessary to understand and manage cost effectively
Explain the key steps required to improve project estimates, budget and cost baselining, perfomance measurement and analysis, cost monitoring and control during project execution and interpreting and reporting project performance throughout a technical project life cycle
Specify key quantitative measures for determining the project performance using Earned Value Management (EVM)
Provide meaningful project progress reports using EVM together with forecasts of likely outcomes and management options to correct where necessary
Apply this cost management process to a simple case study
►Target Audience
managers
senior buyers
project managers, civil engineers
construction managers
contractors, sub-contractors
site engineers, senior management
government agencies
►Course Outline
DAY 1
An Overview of Project Management
Basic Project Management definitions
The PMI PMBoK® project management processes
Project phases and life cycles
Typical project terminology
Setting up for success
The project cost management processes – estimate costs, determine budget and control costs
DAY 2
Developing the Project Schedule – Estimating Cost
Understanding project management inputs to estimating cost
Creating the work breakdown structure (WBS)
Work Packages as building blocks
Estimation techniques
Optimising the schedule
Estimating the overall project cost
DAY 3
Developing the Project Budget – Determining Budget
Understanding project management inputs to determining budget
Estimating personnel, materials and equipment costing including overheads Cost aggregation
Considering the risk management process, risk response planning and risk reserves
Estimating Risk Response costs, and Reserve or Contingency cost
The S-Curve for risk and for cost
DAY 4
Utilising Control Accounts and Effectively Controlling Project Costs
Control Accounts and the Control Account Plan (CAP)
Understanding what measures are required
Change Control processes and re-baselining the cost performance baseline
Understanding project management inputs to controlling costs
Identifying and managing hours worked
Tracking costs
DAY 5
Project Performance Measurement, Interpreting and Reporting EVM results
What is Earned Value Management (EVM)?
What are the main measures used for EVM?
Analysing results – variances, performance indices and forecasting
Interpreting results and considering options to redress unacceptable variances
Forecasting and developing response plans
Reporting EVM to senior management and customers
The design of financial models for forecasting and decision-making