Project Cost Management
2 days
Course Overview and Development Objectives
Competition around precious organizational resources and funding means that project managers need to be ever-cognizant of the importance of efficiently managing and spending organization’s funds. Effective project cost control allows for more effective utilization of these resources and also establishes accountability and justification of project financial needs. This course covers the basics of project estimating, budgeting, financial justification and cost control for projects.
Key topics addressed include the processes and techniques for cost management planning, estimating, budgeting and control. Another key topic is earned value management, a technique commonly employed on larger projects to track progress and performance.
Terminology, processes and definitions, where appropriate follow the Project Management Institute’s (PMI®) Guide to the Project Management Body of Knowledge (PMBOK® Guide).
Audience
This course is for individuals who desire to understand how to successfully manage the estimating, funding and budgeting processes in a project environment. It is especially suited for project team members, project managers and key stakeholders.
Additionally, functional managers who support project resources and professionals who desire a career in project management should benefit.
Course Learning Objectives
At the end of the course, students will be able to:
· Understand what drivers are present today that lead to project selection and financial justification.
· Correctly understand and use some key financial terms such as direct vs. indirect costs, ROI and NPV.
· Develop a project cost management plan.
· Implement effective cost management analysis techniques.
· Facilitate team-oriented cost management and estimating processes.
· Lead effective cost management throughout the project life cycle.
· Know various historical and current approaches to cost estimating.
· Develop a project budget.
· Know how a project budget is used as a baseline for establishing cost control and reporting.
· Apply Earned Value Management (EVM) techniques to understand and communicate project status.
· Effectively make cost-related corrective action decisions based upon project priorities.
Prerequisites
Before beginning this course, students should have:
· Participants should have attended at least a basic course in project management tools and techniques or have equivalent knowledge and experience, especially in the areas of schedule and cost control, risk management and managing project stakeholders.
· 2 or more years of experience in a project management environment is helpful.
· An understanding and experience with MS Windows and Office products.
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