Projects are unique in nature and significantly differ from Business-as-usual (BAU). Costing, budgeting and monitoring of projects are different from regular business operations. To some extent it is easier to manage and control project costs if appropriate techniques are followed.
This course is designed to enable all the techniques of project cost estimation, project budgeting and using tools like EVA to make a successful project.
Main objectives of the course are:
1. Estimate a project cost accurately, efficiently and realistically;
2. Determine financial profitability of a project based on expected benefit analysis;
3. Prepare project budget, budget implementation and monitoring tools;
4. Manage project risk and monitor project progress using Earned Value Analysis.
The programme will be delivered using formal lectures combined with practical and interactive case studies and exercises. There will be a great emphasis on gaining practical experiences.
Contents of Training:
Session One: Project Cost Estimation Techniques
Understand common cost category and their behaviours;
Define project and identify projects quality, time and cost expectation;
Develop WBS to estimate cost of each work package;
Estimate overall project cost and incorporate cost scenario analysis.
Session Two: Determine Financial Profitability of Projects
Estimate the overall financial and non-financial benefits of project;
Develop project’s cash flow stream;
Use discounted cash flow techniques: NPV and IRR to determine project profitability;
Determine Project Pay-back Period, Annual Accounting Return or ROI
Session Three: Project Budgeting and Implementation Tools
Estimate overall project timeline and prepare budgets over full project life;
Breakdown overall budget to daily, weekly, monthly and quarterly budgets;
Prepare budget implementation tools;
Prepare budget monitoring tools.
Session Four: Managing Project Risks and Performance Monitoring
Identify project’s major risks and impact of each risk (probability and cost);
Devise risk management plans;
Use Earned Value Analysis tools to measure project’s performance at periodic interval;
Report project performance against budgets to top management.