Project Cost Management

William J. Scott, P.E.

Course Overview

In today's shrinking world with increasing competition and the financial markets' increasing pressure on corporate earnings, project managers are being required to meet customer satisfaction, profitability, cash flow and company strategic goals all at the same time. Although the push for better, faster, cheaper has always been around, we as project managers have generally been able to live within the world that has been our projects with little regard for the goings on outside our projects. But organizations are constantly being challenged and changed - flatten, downsized, merged, etc. - in the ultimate game to increase shareholder value. As many organizations are becoming more project-based, it is imperative that the project manager understand not only the best ways to execute within his projects but also how these projects fit in to the financial and strategic objectives of the company as a whole.

Just like projects, businesses are executed according to plans. As a matter of fact, starting a business in the first place is undoubtedly a project. Managing a business toward specific objectives during a given period of time can even be considered a project. The analogies abound.

Also, like nearly all projects, the primary objective in business is financial gain. We have all heard from management that we are in business to make money. We may develop and market software, build the world's tallest skyscrapers, or manufacture toilet paper; but our common objective is to make a profit.

But, how is this accomplished? And, how do our projects fit within the financial structure of our companies? All good questions.

This course will give you a brief introduction to the basic business accounting principles used in companies. It will also provide an in-depth discussion and analysis of project financial and cost management processes. Finally, it will address the internal project financial reporting required to integrate your project results into the company's financial results.

This course includes a multiple choice quiz at the end, which is designed to enhance the understanding of the course materials.

Learning Objective

At the conclusion of this course, the student will learn:

• Why people are resistant to change;
• The seven Project Management System elements;
• How to effect change;
• Project Management Characteristics;
• Five key Project Management Concepts;
• Nine Project Management Benefits;
• Eleven Project Management Premises;
• Nine obstacles to change;
• Five Project Management Realities;
• Eight sources of power and influence;
• Organizational characteristics;
• Role of top management;
• Role of functional management;
• Role of project manager;
• Role of project team members;
• What an effective project manager must do;
• How to manage conflict;
• Skill requirement for effective project management;
• Thirteen guidelines for solving problems;
• Eleven rules for effective project management;
• The fourteen rules for wining proposals;
• The ten rules of competitive assessment;
• Why projects fail;
• The eight steps in project planning;
• The purpose of project planning;
• Five categories of major work assignment;
• Fundamentals of resource estimating;
• The five principals of estimating;
• The two sources of scope creep;
• Five ways to control scope creep;
• Precedence tables, what they are and how to use them; and
• Six steps of the procurement process.
  

Intended Audience

This course is addressed to:

• Project Managers
• Project Managers in Training
• Project Engineers
• Project Team Members
• Functional Managers
• Support Personnel
  

Course Content

This course consists of the following six course modules.

Course Modules

Module #1: Basic Business Accounting

Module #2: Project Financial Management

Module #3: Project Procurement Management

Module #4: Project Cost Management

Module #5: Project Financial Reporting

Module #6: Summary Lessons

The course content is in PDF format in each module. You need to open or download those documents to study this course.

Quiz

Once you finish studying the above course content you need to take a quiz to obtain the PDH credits.

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DISCLAIMER: The materials contained in the online course are not intended as a representation or warranty on the part of PDH Center or any other person/organization named herein. The materials are for general information only. They are not a substitute for competent professional advice. Application of this information to a specific project should be reviewed by a registered architect and/or professional engineer/surveyor. Anyone making use of the information set forth herein does so at their own risk and assumes any and all resulting liability arising therefrom.

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