Effective Cost Management

Cost cutting, cost reduction, consolidation or cost management have become central planning topics in all competitive markets. Most companies talk about cost reduction, but fail to maximize the true potential which exists. Day one of this beneficial course focuses on the characteristics of those approaches which lead to the greatest success in targeting cost reduction. An established company in a maturing market is likely to see the best return from investments in cost cutting - but this has to be balanced with investments that will grow the top line. The program includes sessions on establishing a cost reduction culture and developing a cost reduction strategy.

Expected Accomplishments

• Know how to effectively define activities
• Determine ways to effectively sequence activities
• Determine how to effectively estimate resource requirements and estimate durations
• Develop an effective schedule
• Effectively utilize schedule controls to keep their projects on schedule
• Effectively 'Crash' and 'Fast Track' projects to meet time and cost requirements
• Determine how to estimate costs
• Determine how to effectively budget for project costs
• Effectively control the costs of a project
• Influence future project activities to meet project goals

Course Outline

Cost estimating

• Enterprise environmental factors
• Organizational process assets
• Project scope statement
• WBS and WBS dictionary
• Project, schedule and staffing management plan
• Risk register
• Analogous estimating
• Determine resource cost rates
• Bottom-up estimating
• Parametric estimating
• Project management software
• Vendor bid analysis
• Reserve ana lysis
• Cost of quality
• Activity cost estimates
• Requested changes
• Cost management plan

Cost budgeting

• Project scope statement
• WBS and WBS dictionary
• Activity cost estimates
• Project schedule
• Resource calendars
• Contract
• Cost management plan
• Cost aggregation
• Reserve ana lysis
• Parametric estimating
• Funding limit reconciliation
• Cost baseline
• Project funding requirements

Cost control

• Cost baseline
• Project funding requirements
• Performance reports
• Work performance information
• Approved change requests
• Project management plan
• Cost change control system
• Performance measurement analysis
• Earned value analysis
• Variance analysis
• Forecasting
• Project performance reviews
• Variance management
• Cost estimates
• Performance measurements
• Forecasted completion
• Requested changes
• Recommended corrective actions
• Organization processassets
• Project management plan

Who can benefit

• Managerial and supervisory personnel and anyone working on projects

Related Training

• Successful Project Management
• Advanced Rnancial Modeling
• Strategic Business Planning

Mode

• Consultant led classes including fcetures, tutorial exercises and case study

Prerequisites

• Understanding of Project Management is preferred