PROGRAM DETAILS

Introduction

This intensive 5-day course is designed to focus on the subject and practice of Project Planning, Scheduling and Cost Control for anyone working in a project team environment that is increasingly required to manage complex projects. The PMI PMBoK^® global standard for scheduling and cost management processes used are applicable to the majority of projects in most industry sectors.

This course explores the answers to project cost management issues and provides those involves in managing projects with a credible quantifiable answer. This course will also present the delegates with straightforward approaches to accurately developing a cost perfromance baseline and setting up a cost tracking system so that the budget is well managed during the project’s life cycle.

The course introduces an increasingly popular project performance measurement tool called Earned Value Management, applies this to the planning and scheduling process, and then describes the application, measurement and interpretation of its results together with options for corrective action where necessary. In Summary the course covers:

• The context of Planning, Scheduling and Cost management in PMI PMBoK® project management processes – an overview
• Developing the project schedule – estimating
• Developing the project budget – determining cost and budget
• Effectively controlling the project schedule and budget – controlling planned activities and costs
• Measuring project performance with Earned Value Management
• Utilising Control Accounts to ensure successful project integration

Learning Objectives

Participants attending the programme will:

• Understand the benefits of good project planning, scheduling and cost control for successful project outcomes
• Use best practice to minimise costs and negative impacts on the schedule
• Describe a typical project planning schedule and cost management lifecycle
• Explain the action required at each phase of the project cost management lifecycle and understand the significance of each phase
• List the key attributes of cost necessary to understand and manage cost effectively
• Explain the key steps required to improve project estimates, budget and cost baselining, perfomance measurement and analysis, cost monitoring and control during project planning and execution and interpreting and reporting project performance throughout a technical project lifecycle
• Specify key quantitative measures for determining the project performance using Earned Value Management (EVM)
• Provide meaningful project progress reports using EVM together with forecasts of likely outcomes and management options to correct where necessary
• Apply this Planning, schedule and cost management process to an industry aligned case study

Target Audience

The course was designed for project professionals and team leads that need to lay a strong foundation for or broaden their understanding of project cost management. Typically, this includes:

• Project professionals wishing to revisit the fundamental principles of business and project schedule and cost management, and Earned Value or reinforce their existing skills and knowledge
• Project team members wising to learn more about project planning. Scheduling and cost management practice
• Lead Engineers who are required to provide project leadership
• IT Technical specialists, such as Architects, Business Analysts, and SW product SMEs moving into project management or team leadership roles, who wish to add this valuable tool to their project management repertoire
• Project Team Leads working within project teams who report to a Project Manager who need to understand how to apply Scheduling principles to project planning and Earned Value Management principles to project cost control

Training Methodology

 This highly interactive and intensive training course provides attendees with the latest practices, tools and techniques. Our format combines real-world practical case study examples, hypothetical scenarios, group exercises and tutorial-style presentations with a focus on collaborative and interactive learning. Notes are in an open format with slides but leave room for personal notes. The instructor’s slides will be available after the course in pdf format.

 Program Content

Session 1: An Overview of Project Management

 In this module the students will learn the PMI PMBoK^® globally accepted standard approach to managing projects. This will provide the context for developing and managing the project budget. This module will cover:

• Basic Project Management definitions
• The PMI PMBoK® project management processes
• Project phases and life cycles
• Typical project terminology
• The project scheduling and cost management processes – estimate activities, costs, determine budget and control costs

Session 2: Developing the Project Schedule – Estimating Activities and Cost

 The basis for good estimation and cost control is the development of an accurate Work Breakdown Structure (WBS) – on which the work packages depend for accurate estimation. In this module we will create the overall project schedule and learn how the project cost is tied to each individual project activity. This module will cover:

• Understanding project management inputs to estimating cost
• Creating the work breakdown structure (WBS)
• Work Packages as building blocks
• Estimating and sequencing activities
• Estimating the overall project cost

Session 3: Developing the Project Budget – Determining Budget

Whether working on a simple or complex project all project managers need to develop an accurate budget based on the total resources required for their project. Here the students will learn how to create the detailed budget and the cost baseline necessary for project control. This module will cover:

• Understanding project management inputs to determining budget
• Estimating personnel, materials and equipment costing including overheads
• Cost aggregation
• Considering both management and risk reserves
• The S-Curve

Session 4: Effectively Controlling Project Schedule and Costs

In this module the students will learn the necessary steps to monitoring and controlling the project scheduled activities and budget. This module will cover:

• Understanding project management inputs to controlling the project schedule and costs
• Identifying and managing hours worked
• Tracking costs

Session 5: Project Performance Measurement and EVM

Whether or not the project manager is familiar with Earned Value Management, it is rapidly becoming the favoured means of tracking project performance.  In this module the students will learn that for large, complex projects the most accurate way to track progress and performance is through Earned Value Management. This module covers:

• What is Earned Value Management (EVM)?
• What are the main measures used for EVM?
• Analysing results – variances, performance indices and forecasting

 Session 6: Utilising Control Accounts

 Here the students will learn about setting up Control Accounts, and the Project Cost Performance Baseline. This module will cover:

• Control Accounts and the Control Account Plan (CAP)
• Understanding what measures are required
• Change Control processes and re-baselining the cost performance baseline

 Session 7: Measuring and Interpreting Performance Metrics

In this module the students will learn about measuring and interpreting EVM results and reporting to senior management and customers. This module will cover:

• Identifying typical EVM performance results
• Interpreting results and considering options to redress unacceptable variances
• Forecasting and developing response plans
• Reporting EVM to senior management and customers