EPM

Project Cost and Financial Management

PROJECT COST AND FINANCIAL MANAGEMENT

Completing Projects on Schedule, Within Budget, to Maximize Customer Satisfaction

Duration: 2 Days | 16 Contact Hours | 16 PDUs | Code: PCFM

ABOUT THE PROGRAM
Complete Projects on Schedule, Within Budget and Maximize Customer Satisfaction

Project Cost and Financial Management is concerned with the process of performing pre-project financial assessment, planning, creating and controlling the cost of a project or business. It includes activities such as planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.

Cost management covers the full cycle of a project from the pre-project assessment, initial planning phase towards measuring the actual cost performance and project completion.

This course will explain the cost definition, process of calculating the project cost and also Earn Value Analysis technique which is used to monitor the performance of the project cost in line with the method as according to PMBOK.

Program Outline

Introduction

  • Course Structure and Objectives

Project Assessment and Selection Method

  • Benefit Cost Ratio
  • Present Value
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Weighted Scoring Model
  • Return on Investment (ROI)

Cost Definition

  • Opportunity Cost
  • Opportunity Loss
  • Direct Cost
  • Indirect Cost
  • Variable Cost
  • Fixed Cost
  • Sunk Cost
  • Capital Expenditure (CAPEX)
  • Operational Expenditure (OPEX)

Project Cost Calculation

  • Project Scope vs. Product Scope
  • Scope Definition
  • Creating a WBS and Account Code
  • Estimate Resource and Duration
  • Develop Project Schedule
  • Critical Path
  • Definitive Estimate
  • Project Cost Calculation and Cost Baseline
  • Management Reserve & Contingency Reserve

Cost Monitoring

  • Earn Value Management (EVM)
  • Planned Value (PV)
  • Earn Value (EV)
  • Actual Cost (AC)
  • S-Curve Analysis
  • Cost Performance Index (CPI)
  • Schedule Performance Index (SPI)
  • Cost Performance Index (SPI)
  • Cost Variance (CV)
  • Schedule Variance (SV)

Margin and Profit Calculation

  • Project Gross Profit Margin
  • Project Net Profit Margin

Who Should Participate

This course is perfect for project directors, project managers, assistance project manager, project team members, technical team members, financial executive, business analyst and anyone who is directly involved with projects in almost every industry who wishes to achieve a better understanding of practical, formal project management methods

Learning Objectives

At the end of this action-based workshop, participants will be able to:

  • Identify the correct method of financial assessment for a project and understand the formula, method of calculation and analysis of results

  • Identify types of cost, definition and financial terminologies used in a project

  • Create a total project scope in a form of Work Breakdown Structure (WBS) and project schedule by using Critical Path method.

  • Create a short and long term project costing and financial requirements

  • Perform project cost monitoring by using Earn Value Management (EMV) techniques and S-Curve analysis

  • Perform analysis and post project assessment in terms of profit and loss (PNL)

Credits

This course qualifies for 16 Professional Development Units (PDUs) under Project Management Institute (PMI).

Train with EPM and you’re in good company

OUR TRAINERS

Our trainers have many years of project management, leadership and training experience. All have used the processes, tools, techniques and good practices outlined in the Project Management Institute PMBOK® Guide and are able to relate this knowledge to the running of successful projects in industry.

THE COURSE MATERIAL

Our group exercises and exam practice questions have been developed over many years following Instructional Design techniques. All materials are regularly updated based on participant feedback and current industry good practices.

THE TRAINING WORKSHOP

Our workshops are conducted in a group environment where participants are encouraged to participate in individual and team activities to promote learning, build team morale and reinforce understanding of concepts.

TRAINING GRANTS

Funding support for training courses. Terms and conditions apply.

Training Assistance Scheme: SBL & SBL Khas Scheme

Malaysia

The SBL & SBL Khas programme provided by HDRF, Malaysia supports the course and exam fees, capped at RM1,300 per day for Company-sponsored trainees from HRDF Registered Employers. Prior approvals must be obtained from HRDF.