Course Methodology
This course relies on individual and group exercises to help participants learn all the critical activities related to project budgeting and cost estimation. It also features several case studies, participant role plays, and discussions. In addition, it incorporates pre- and post-testing.
Course Objectives
By the end of the course, participants will be able to:
- Explain the project cost management process and develop project cost management plans
- Build a business case and utilize capital budgeting techniques to evaluate long-term investments used in a project
- Provide accurate estimates and identify different methods for estimating a project’s overall costs
- Develop a project cost baseline and a project budget and explain contingency and management reserves allocated for the project
- Identify project variance and calculate project performance metrics using earned value analysis
- Apply different cost-saving strategies for projects and implement continuous improvement concepts on project overall finances
Target Audience
Project managers who seek to estimate costs for the activities of their projects, manage project budgets, and learn the different methods that can help in saving project costs.
Target Competencies
- Project management
- Project planning
- Budgeting
- Cost estimating
- Earned value analysis
- Cost savings
Overview
- Project life cycle
- Project cost management processes
- Cost management plan
Capital Budgeting
- Business case
- Capital budgeting techniques
- Benefit/Cost Ratio (B/C)
- Return on Investment (ROI)
- Payback Period (PBP)
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Decision Tree/Expected Monetary Value (EMV)
Cost Estimation
- Building work breakdown structure
- Cost estimating techniques
- Analogous estimating
- Parametric modeling
- Bottom-up estimating
- Three-point estimating
Project Budgeting
- Cost aggregation
- Contingency reserves
- Management reserves
- Funding limit reconciliation
- Cashflow management
- Project cost optimization
Cost Saving Strategies
- Cost saving strategies for projects
- Optimize the use of labor
- Smooth workloads
- Improve quality of your processes
- Shorten the project duration
- Value stream mapping
Control Account Management
- Control Account Elements
- Control Account Manager (CAM)
- Variance analysis
- Cost performance metrics
- Schedule performance metrics
