Project Cost Management

• Use the work breakdown structure to develop a network diagram
• Calculate schedules using PERT/CPM
• Identify, assign, and tabulate resource requirements
• Predict costs and work time using specific levels and estimate types
• Plan for contingencies and anticipate variations
• Predict future project performance based on historical data
• Monitor changes and close out projects on time

1.0 Building the project resource pool

• Using resources to build estimates
• The responsibility matrix
• Time-controlled estimates
• Resource-limited estimates

2.0 Essential background

• Overview of the project management life cycle
• The triple constraint
• Planning tools
• Project requirements—a review

3.0 Evaluation and forecasting

• Causes of variances
• Establishing the “data date” for evaluation
• Controlling costs and schedule late in the project
• Components of the project audit
• Considerations in establishing a monitoring system
• Earned value management
• Advanced earned value management forecasting tools

4.0 Identifying controllable costs

• Resource
• Material
• Direct
• Indirect
• Planning for risk with contingency

5.0 Managing change within the project

• The process of control
• Identifying sources of change
• Screening change
• Updating the project plan
• Communicating change

6.0 Scheduling

• Network scheduling
• Validating schedules
• Arrow diagrams and precedence diagrams
• Basic scheduling and network calculations
• Advanced precedence relationships and the critical path
• Alternative constraints
• Gantt and milestone charts

7.0 The baseline

• Establishing baselines
• Understanding types of baselines
• Time-phased distribution of costs
• Cumulative cost curves

8.0 The exit strategy

• Steps in completing the project
• Scope verification
• Contract closeout
• Administrative closure

9.0 The work breakdown structure- a review

• Resource Allocation and Estimating
• Using estimates for scheduling and cost control
• The basic rules of estimating
• Levels of estimating and estimate types
• Top-down vs. bottom-up
• Order of magnitude
• Budget
• Definitive
• Four estimating methodologies