Project Cost Management: Estimating, Budgeting and Earned Value Analysis August 9, 2009

Cost overruns average about 56% of original budgets!* It’s the last thing you need during volatile economic times.

Some potential culprits of project cost management: Poor estimates. Unrealistic budgets. ROI falling short of expectations. Just plain poor financial management. Sound familiar? The good news is that we have created a practical, hands-on training that gives you a better understanding of the cost aspect of managing projects. Learn how to apply proven methods, tools and techniques to prepare estimates, develop and monitor budgets, manage cash flow, and use earned value analysis (EVA) to ensure that the project’s ROI is achieved. This course will use a realistic and interactive case study that will allow you to practice the methodology.

*According to a recent study by The Standish Group.
How You Will Benefit

* Understand enterprise financial management concepts and how they apply to projects
* Apply the business tools of NPV, IRR, payback period, and benefit/cost ratio to evaluate projects
* Provide improved cost estimates and ROI calculations
* Manage the budget throughout the project lifecycle
* Expertly apply EVA concepts to your projects
* Identify potential financial risks and implement contingencies
* Accurately forecast project cost performance by calculating cost/schedule variances

What You Will Cover

* Why cost management is crucial to project management
* Evaluating projects in terms of a cost/benefit analysis
* How the Time Value of Money works
* The five rules of project cost estimating: five rules to follow
* Project budgeting: developing a cost management plan using organizational systems, guidelines and policies
* Project cost management and risk planning
* Managing project cash flows and controlling costs using Earned Value Analysis

Who Should Attend

Project/program/PMO managers, business analysts in a project team and finance and senior managers who need to understand how the finance and project functions impact each other.

What you will need to bring: a laptop loaded with Excel.
Extended Training Description

Learning Objectives

* Select and Prioritize Projects
* Estimate Work Package Costs
* Create a Project Budget
* Control Project Cost Using Earned Value

The Enterprise Environment

* Describe a Generic Process for Project Selection and Prioritization
* Apply Principles of Net Present Value, Internal Rate of Return, Payback Period, and Benefit Cost Ratio to Evaluate Projects
* Select and Prioritize a List of Potential Projects

Cost Estimating

* Describe a Generic Process for Project Cost Estimating
* Apply the Rules of Estimating
* Estimate Cost for a Given Work Package
* Apply Specific Estimating Tools

Cost Budgeting

* Contrast the Operational and Project Accountability Structures
* Comprehend a Generic Process for Project Cost Budgeting
* Aggregate Cost Estimates to Produce a Project Budget

Cost Control

* Describe the Primary Purposes of Cost Control
* Calculate Earned Value
* Interpret Earned Value Results

Case

* Apply Your Newly Acquired Skills in Cost Budgeting and Cost Control in a Mentored Environment

Official Website: http://www.focustraco.com/index.php/tm-training-schedule/details/215-106202