Basics of Cost Estimation and Cost Analysis
Basics of Cost Estimation and Cost Analysis
About the course:
Cost estimating is a fundamental yet challenging task for contract and project managers. Participants will receive instruction on the cost estimating process, principles and procedures based on best-practices and the GAO Cost Estimating and Analysis. In addition, they will learn step-by-step process for developing accurate and realistic project cost estimates that withstand the scrutiny of customers and management and form a baseline for tight financial control. They will also learn how to incorporate risk and uncertainty in their estimates, provide range estimates and manage the cost estimating process throughout the project life cycle, This course also addresses key issues, such as cost analysis
The integrated case study will give participants an opportunity to apply the cost estimating process to a realistic IT scenario using both time-tested estimating techniques and recent innovative approaches.
Objectives:
- Cost analysis and improvement
- Advanced Costing and Management techniques (ABC, ABB, ABM) Economic Value Added
- Manage the cost estimating process throughout the project life cycle
- Incorporate risk and uncertainty into estimates
- The linkages between strategy, budgeting, operations and financial/non-financial measurement
- The Balanced Scorecard construction and implementation
- Enhance cost awareness
- Describe specific cost analysis and performance measurement techniques
- Select the costing measurement system that works
- Select the systems of performance measurement that works
- Demonstrate Activity-based costing techniques
- Broadening knowledge of performance management techniques
- To understand the link between involvement and accountability
- Discuss real case studies
- Broadening the management accounting knowledge
- Enhance the ability to link cost to strategy to performance measurement
Who Should Attend
- Professionals with direct financial responsibilities and those who would benefit from news ideas and methods
- Employees from every business discipline and department who have to run departments and plan and who are responsible for cost and strategic analysis
- Middle to senior personnel from all sectors of industry and employees on fast-track development courses, along with other employees working in a project management environment.
Outline
Cost Estimating Basics
- Basic Project Management definitions
- Cost Selection Methods
- Typical project terminology & setting up for success
- Project cost management, Cost Control
- Resource & Cost Allocation
- Understanding project management inputs to cost estimation
Pricing, Contracts and Risk
- Project management inputs to cost budgeting
- Resource Requirements
- Direct & Indirect Project Costs
- Probability and Standard Deviation Formulae
- Contract types according to risk distribution
- Fixed Price Contracts, Cost-Plus Contracts
Developing the Project Budget & Cost Control
- Risk Identification, Analysis & Management
- Qualitative Risk Analysis
- Quantitative Risk Analysis
- Risk & Probability Matrix
- Risk Response Strategy
- Cash Flow management
Approximate & Detailed Estimating Methods
- Material Estimating
- Civil/Construction Estimating
- Labor estimating, Detailed estimating with labor crews
- Procurement Management
- Risk distribution in contracting
- Project risk profiles
Advanced Estimating Methods
- Building Information Modeling (BIM)
- Cost Estimating Relationships (CER)
- Computer Estimating
- Control Charts
Certificates
A Certificate of Completion will be issued to those who attend & successfully complete the programme.
Schedule
08:30 – 10:15 First Session
10:15 – 10:30 Coffee Break
10:30 – 12:15 Second Session
12:15 – 12:30 Coffee Break
12:30 – 14:00 Third Session
14:00 – 15:00 Lunch
Training Methodology:
This interactive training course includes the following training methodologies as a percentage of the total tuition hours:
- 30% Lectures, Concepts, Role Play
- 30% Workshops & Work Presentations, Techniques
- 20% Based on Case Studies & Practical Exercises
- 20% Videos, Software & General Discussions
- Pre and Post Test
Fees
The Fee for the seminar, including instruction materials, documentation, lunch, coffee/tea breaks & snack is: