Modern Management for Managing Project Cost

In today's complex business environment, we see rising incidents of runaway projects with staggering losses. It is not for lack of new methods or tools. For the most part, it is caused by a misunderstanding of the nature of project cost, or the misapplication of traditional cost management to a project environment.
Unfortunately, there are very few programs or literature that deals specifically with project cost management. At best, it is presented as part of a schedule and cost control system, where cost management is often glossed over in favor of managing the schedule.
This 2-day workshop will focus on managing project cost. As you learn the core principles behind project cost management, we will also show you a structured methodology that takes advantage of current technologies. At the end of the workshop, you will receive a soft copy of templates and forms that will help you deploy your own project cost control system as soon as you get back to your office.




Overview of Project Cost
Management

• Project Cost Management: What it is/What it is not
• Project Cost Accounting vs Traditional Cost Accounting
• Why the lack of attention in cost management within project environments
• Quick Tour: Earned Values Method as a Project Cost Control tool
• Overview of PSSI's Method 123 Project Cost LifeCycle

1. Develop a Cost-Centric Project Plan
• Structuring the WBS for cost management
• Strategies for Cost Estimates
• Developing a Cost Estimate Model
• Work Breakdown Structure (WBS) vs Cost Breakdown Structure (CBS)
• Transforming the Cost Estimate to a Project Budget
• Preparing for a cost-centric control environment


2. Set up a Project Cost
Control System

• Defining the sources of cost data
• Strategies for capturing and posting of cost data
• Measuring earned values: Methods and practices
• Rationalizing Project cost reports: Customizing your own reporting system
• Implementing an MS Project Cost Control system
• Implementing an Enterprise Project Cost Control system


3. Manage Project Cost Using Earned Values

• A Closer look at Earned Value Charts (S-curves): Interpreting different project cost scenarios
• Performance indices and other Earned Value indicators
• The Arithmetic behind earned values: Common practices and applications
• Strategies at keeping project cost on track
• Reality check: Forecasting the project cost at completion
• Adjusting the Budget
• Preparing the Project closure report: A Cost Perspective