Project Cost Management

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Project Cost Management
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Introduction

This course has been designed for directors and project managers who wish to learn more about the financial concepts associated with project management.

At the end of the course, students will be able to more efficiently manage the budget assigned to their projects, as well as analyze the financial viability of the projects based on the application of the basic concepts of the world of finances.

Objectives

At the end of this course students will be able to:

  • Understand the main financial concepts associated with project management
  • Interpret and analyze financial accounts
  • Communicate effectively with specialists in Finance
  • Use the financial concepts behind the decision making processes
  • Efficiently manage the budget assigned to a project
  • Improve the presentation of the project situation reports

Student Profile

Directors or project managers with experience and knowledge about project management, managers of technical or project offices, and, in general, any professional related to project management that seeks improvement in their performance.

Prerequisites

We recommend students have experience in managing IT projects to attend this course.

Course Materials

Each student will receive a copy of the course documentation prepared by Netmind.

Methodology

Engaging and interactive course. Our instructors teach all course materials using the demonstrative method; the participants learn new concepts through exercises and real application practices.

Certification

There isn’t an official certification associated with this course. However, students will earn 7 credit hours for their attendance.

Accreditation

A certificate of attendance will be issued to students who attend the course for at least 75% of the duration.

Course Outline

  1. Review of Financial Terms
    1. Introduction to finance
    2. Determine the structure of financial statements
    3. Introduction to Accounting
    4. Demystifying Financial language
  2. Financial Accounting: Analysis and Interpretation
    1. Profit and loss account
      1. Definition of results, income and expenses.
      2. Difference between expenses, costs and investments.
      3. Benefits vs Cash Flow
      4. Analysis of the concept result (profit and loss).
      5. Account of analytical results, gross margin, BAII, BAI, net profit.
    2. The financial balance
      1. Patrimony, concept of equity, assets and liabilities
      2. Types and characteristics of the balance sheets
      3. Distinguish between fixed and circulating assets
      4. Distinguish between permanent and callable resources
      5. Valuation of Assets immobilized
    3. Analysis of the financial statements
      1. Use appropriate proportions to determine the financial status and feasibility
      2. Procedures for analyzing the estate and profit and loss
      3. Main patrimonial Ratios: Liquidity level,
      4. Main results Ratios: Economic and financial return rate
      5. Financial leverage: benefits and risks
  3. Analytical Accounting: Cost analysis and financial equilibrium
    1. Deduct the optimal real cost
      1. Classification of the cost types: fixed, variable, direct and indirect
      2. Comparison of the costing techniques
      3. Value the Decisions using cost Techniques
    2. Analyze the situation of financial equilibrium
      1. Calculate the financial equilibrium situation of a project
      2. Evaluate the net present value (VAN) and the rate of return of the investment (TIR)
  4. Introduction to Budget Management
    1. Financial concepts when setting a budget
      1. Concepts and objectives of the budgetary management
      2. Process of elaboration of a budget, forecast of income and expenses
      3. Types and methodologies of budgets
    2. Preparation of project feasibility studies
      1. How to  determine if a project is viable
      2. Investment vs funding
      3. Methods of Project selection: ROI, Pay Back, VAN, TIR and TCO
  5. Financial Management of Projects
    1. The Business Case
      1. How to develop a Business Case
      2. Financial Concepts in a Business Case
    2. Estimations
      1. Fundamental Concepts
      2. Estimation techniques
      3. Life cycle of estimates
    3. Establish the Project Budget
      1. Contingency reserves and Management reserves
      2. Project cost and budget baseline
      3. Reconciliation with funding limits
    4. Control the Project Budget
      1. Budget vs Reality
      2. Calculate and interpret deviations
      3. Earned value
      4. Corrective measures and their control
      5. Financial projections in the follow-up reports
    5. Procurement management
      1. Outsource part of the project
      2. Types of relationship and contracts
      3. Supplier selection criteria
      4. Types of work and recruitment
      5. Procurement monitoring and control

Public Classes

Currently, we don't have any public sessions of this course scheduled. Please let us know if you are interested in adding a session.

See Public Class Schedule

Course Details

Reference

JJM 991

Duration

1 day

Delivery Mode

Virtual, Face-to-Face
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Alpharetta, GA 30009-1973
T. +1 (678) 366.1363
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