Project Cost Management Training

Duration: 
2 days
Codes: 
TP2557

Overview

The Cost Management course addresses the identification, elaboration, planning, and management of the project budget. Including selected processes from the PMI Integration, Cost, Scope and Risk Knowledge Areas, this class addresses the development of a Project Cost Estimate, Project Budget, and the Project Budget Baseline. In addition it addresses the preparation of a spending profile that supports variance analysis and corrective action using Earned Value Management. Using a combination of theory based lecture and hands on exercises, students are provided with an effective skill set for developing and controlling the project budget baseline.

Audience

This course is intended for both project team members and project managers wishing to gain a fluent working knowledge of commonly accepted best practices for planning and management of the project cost baseline. Team members and managers looking to improve their project cost estimating and cost budgeting skills and looking to improve their understanding of how to deliver their projects within budget should take this course. Students on a track to take the PMP examination should take this course.

14 PDUs

2 days

Skills Gained

  • Fluency in cost estimating methods
  • Skills and tools allowing the development of a project cost estimate
  • Development and management of the Cost Baseline
  • Ongoing cost baseline management and control
  • The mechanics of Bottom-up Estimating
  • The mechanics of Analogous Estimating
  • The mechanics of Parametric Estimating and “Cost Estimating Relationships”
  • How to read and analyze a project cost estimate
  • Life-Cycle Costing - how to estimate the costs of a project over the project life cycle
  • Time-Phased Budgeting - how to prepare the budget/cost baseline
  • A comprehensive introduction to cost variance analysis and cost control

Course Outline

Outline of Project Cost Management Training 1. Strategic Course Goals and Objectives

  • Financial term and concepts
  • Fixed and variable costs
  • Sunk costs
  • Direct costs
  • Indirect costs
  • Project evaluation techniques
  • Payback
  • Benefit:Cost ratios
  • Rate of return
  • Net Present Value

2. Introduction to Cost Management processes

  • Triple Constraint
  • Project Management Plan
  • WBS
  • Resource Estimates
  • Time-Phased Budget

3. Introduction to Cost Management processes

4. Plan Cost Management

  • Purpose
  • Cost Management Plan

5. Estimate Costs

  • Context
  • Purpose of Estimate Costs
  • Cost estimating tools and techniques
  • Analogous estimates
  • Parametric estimates
  • Bottom-up estimates
  • Three-point estimates
  • Reserve analysis
  • Cost of quality

6. Determine Budget

  • Purpose of Determine Budget
  • Determine Budget tools and techniques
  • Cost aggregation
  • Funding limit reconciliation
  • Reserves
  • Contingency reserve
  • Management reserve
  • Cost baseline

7. Control Costs

  • Monitoring and Controlling the project
  • Integrated Change Control
  • Purpose of Control Costs
  • Calculating variance analysis

8. Earned Value Management

  • Introduction
  • Earned value rules
  • Earned value formulas and calculations
  • Earned value graph
  • Forecasting
  • To Complete Performance Index

9. Project Closure

  • Lessons learned

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Thinking about Onsite?

If you need training for 3 or more people, you should ask us about onsite training. Putting aside the obvious location benefit, content can be customised to better meet your business objectives and more can be covered than in a public classroom. It's a cost effective option.

Submit an enquiry from any page on this site, and let us know you are interested in the requirements box, or simply mention it when we contact you.

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