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Diploma Project Management       Captain Cook College                Sharon Boyle
   Presentation   Discussion revision through discussion around Assessment Items    ◦ Assessment items for Cost Unit inc...
   No. 1.    Prepare a Cost management plan for Fred’s Shed – Mr Jones job and    include a detailed project budget.   ...
   Prepare a Cost management plan for Fred’s    Shed – Mr Jones job and include a detailed    project budget.   What is ...
   TABLE OF CONTENTS    ◦   Introduction    ◦   Cost Management Approach    ◦   Measuring Project Costs    ◦   Reporting ...
   A brief scenario will be provided which    impacts on time & cost.   Update your budget in Assessment Item 1.   Desc...
   Provide progress report - this will include    the Variance analysis from Scope & Time    Units.   Use the template p...
   Each student is required to attend the    meeting, play the role requested and prepare    a set of minutes.   Date 25...
   Project Manager - Jamie   Assistant PM - Kevin   Cost controller – Jerzy   Scheduler - Chas   Client – Mr Jones - ...
   Remember    ◦ LMS – don’t bother with Activity 2.    ◦ Written/Oral for next week.   Cost management plan –    ◦ use ...
   1. Determine project costs   2. Monitor and control project costs   3. Conduct financial completion activities
1.   EVM an overview2.   Basic Elements3.   Cost Variances4.   Schedule Variances
   Different ways of presenting information    ◦ Numbers eg    ◦ Graphs    ◦ Analysis & indices
   S-curve –    ◦ expenditure &      income    ◦ throughout      lifecycle   Earned Value    Theory
   tracking tools upon which to base forecasts   Integrates scope, schedule & cost   Answers many questions stakeholder...
   financial analysis specialty from United States    Government programs in the 1960s,   Now significant branch of proj...
   http://www.youtube.com/watch?v=7WsfuvHe    gxE
   Planned Value    ◦ (PV) = PV or Budgeted cost of work scheduled BCWS      = Hourly Rate * Total Hours Planned or Sched...
   Cost Variance (CV) indicates how much over    or under budget the project is.   Why is under cost a problem?   (CV) ...
   Cost Variance % - how much over or under    budget the project is in terms of percentage   CV% = CV/EV    ◦ Or   CV%...
   CPI = EV/AC   Shows how efficient we are   Above 1 good efficiency   Below 1 project not using resources    efficie...
   TCPI = Total Budget – EV/Total Budget – AC   Another measure of efficiency –    ◦ The correct people do the correct t...
    Schedule Variance (SV) = Earned Value (EV) -    Planned Value (PV)   How much is yet to be completed as per    sched...
   Budget at Completion = total budget   BAC = Baselined effort hours x hourly rate   Estimate to complete – just what ...
   http://www.youtube.com/watch?v=7WsfuvHe    gxE&feature=related
   Activity 1.   Activity 3.
   Conduct appropriate close out activities    ◦   Has everyone been paid?    ◦   What about the variations?    ◦   Where...
Cost unit 2013 part 2. 24 jan
Cost unit 2013 part 2. 24 jan
Cost unit 2013 part 2. 24 jan
Cost unit 2013 part 2. 24 jan
Cost unit 2013 part 2. 24 jan
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Cost unit 2013 part 2. 24 jan

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Transcript of "Cost unit 2013 part 2. 24 jan"

  1. 1. Diploma Project Management Captain Cook College Sharon Boyle
  2. 2.  Presentation Discussion revision through discussion around Assessment Items ◦ Assessment items for Cost Unit including structure for CMP ◦ Confirmed & agreed date for Project management meetingMorning Tea ◦ Earned Value Analysis ◦ Variations & Closeouts Work on either cost management plan or LMS questionsLunch Discuss answers for Activities 1 & 3 – leave Written/Oral to next week Continue working on LMS ◦ Tomorrow ◦ Project Meeting
  3. 3.  No. 1. Prepare a Cost management plan for Fred’s Shed – Mr Jones job and include a detailed project budget. No 2. Analyse scenario to be provided & insert into baselined budget. Note variances No 3. Provide progress report - this will include the Variance analysis from Scope & Time Units. No 4. Attend a Project Meeting where progress will be presented based on progress reports prepared in Scope, Time & cost units. Each student is required to attend the meeting, play the role requested and prepare a set of minutes.
  4. 4.  Prepare a Cost management plan for Fred’s Shed – Mr Jones job and include a detailed project budget. What is the purpose of a cost management plan? Major components? Use scaled down template provided
  5. 5.  TABLE OF CONTENTS ◦ Introduction ◦ Cost Management Approach ◦ Measuring Project Costs ◦ Reporting Format ◦ Cost Variance Response Process ◦ Cost Change Control Process ◦ Project Budget
  6. 6.  A brief scenario will be provided which impacts on time & cost. Update your budget in Assessment Item 1. Describe the impacts on the budget. Use the template but just the appropriate sections
  7. 7.  Provide progress report - this will include the Variance analysis from Scope & Time Units. Use the template provided
  8. 8.  Each student is required to attend the meeting, play the role requested and prepare a set of minutes. Date 25 January Agenda will be prepared & sent out by Jamie Everyone required to prepare minutes of meeting
  9. 9.  Project Manager - Jamie Assistant PM - Kevin Cost controller – Jerzy Scheduler - Chas Client – Mr Jones - Dennis CEO – Fred - Sylvester Note taker - Winni
  10. 10.  Remember ◦ LMS – don’t bother with Activity 2. ◦ Written/Oral for next week. Cost management plan – ◦ use structure provided or do up your own ◦ Must include budget for Fred’s shed ◦ Consider EVA after next week’s lectures & video
  11. 11.  1. Determine project costs 2. Monitor and control project costs 3. Conduct financial completion activities
  12. 12. 1. EVM an overview2. Basic Elements3. Cost Variances4. Schedule Variances
  13. 13.  Different ways of presenting information ◦ Numbers eg ◦ Graphs ◦ Analysis & indices
  14. 14.  S-curve – ◦ expenditure & income ◦ throughout lifecycle Earned Value Theory
  15. 15.  tracking tools upon which to base forecasts Integrates scope, schedule & cost Answers many questions stakeholders need Performance can be shown as ◦ Past ◦ Current ◦ Predictive Promises to reduce over-runs
  16. 16.  financial analysis specialty from United States Government programs in the 1960s, Now significant branch of project management. In the late 1980s and early 1990s, EVM emerged as a project management methodology EVM has become an essential part of every project tracking.
  17. 17.  http://www.youtube.com/watch?v=7WsfuvHe gxE
  18. 18.  Planned Value ◦ (PV) = PV or Budgeted cost of work scheduled BCWS = Hourly Rate * Total Hours Planned or Scheduled Actual Cost ◦ (AC) = hourly rate x total hours spent Earned Value ◦ (EV)= Baselined costs x % complete % Completed Planned ◦ % Completed planning =PV/BAC
  19. 19.  Cost Variance (CV) indicates how much over or under budget the project is. Why is under cost a problem? (CV) = Earned Value (EV) – Actual Cost (AC) Also CV = BCWP – ACWP ◦ Positive Cost Variance Indicates the project is under budget ◦ Negative Cost Variance Indicates the project is over budget
  20. 20.  Cost Variance % - how much over or under budget the project is in terms of percentage CV% = CV/EV ◦ Or CV% = CV/Budgeted Cost of Work
  21. 21.  CPI = EV/AC Shows how efficient we are Above 1 good efficiency Below 1 project not using resources efficiently
  22. 22.  TCPI = Total Budget – EV/Total Budget – AC Another measure of efficiency – ◦ The correct people do the correct things within a clear process ◦ Above 1 utilization must be stringent ◦ Below 1 lenient.
  23. 23.  Schedule Variance (SV) = Earned Value (EV) - Planned Value (PV) How much is yet to be completed as per schedule +ve Schedule variances = we are ahead of time -ve Schedule variance = we are behind schedule Then same % as for Costs
  24. 24.  Budget at Completion = total budget BAC = Baselined effort hours x hourly rate Estimate to complete – just what it says. Estimate hours required x hourly rate
  25. 25.  http://www.youtube.com/watch?v=7WsfuvHe gxE&feature=related
  26. 26.  Activity 1. Activity 3.
  27. 27.  Conduct appropriate close out activities ◦ Has everyone been paid? ◦ What about the variations? ◦ Where do we stand? ◦ Detailed records must be kept ◦ Any lessons learnt?
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