This document discusses project cost management. It defines cost and identifies different cost elements like materials, labor, expenses and overheads. It also discusses types of costs like fixed and variable costs. Cost estimation, analysis and management strategies are important for effective project planning and evaluation. Clinical trials require significant costs for preclinical and various phases of testing to generate safety and efficacy data for new drugs or treatments. Proper cost analysis is needed to assess total expenditures and determine if a project's revenues will cover its costs.

1. Project - Cost Management
PresentedBy,
Miss.Sneha Bhaskar Phad.
F.Y M. PHARMACY.
Department of Pharmaceutics
Dr. D.Y.PATIL COLLEGE OF PHARMACY AKURDI PUNE 44.

3. What is Cost ?
In production, research, retail, and accounting, a cost is the value of
money that has been used up to produce something, and hence is
not available for use anymore.[1]

4. Cost Elements

5. Elements of Cost
Material: Sub from which product is made
 Direct material : Integral part of the finished
product
 Indirect material : Stationary, services etc.
Labour : Manpower use to produce finished product
Direct labour : Active or direct part in production
Indirect labour : store keeper, time keepers,
outsources etc.[

6. Expenses :
Direct expenses : procurement of machinery etc.
Indirect expenses : rent, electricity etc.
Overheads : All indirect costs
Factory overheads
Indirect material : Lubricants, oils, etc.
Indirect Labour : Gate-keepers, manager salary etc.
Indirect expenses : Rent, insurance etc.
Office and admin overheads :
Indirect material : Printing and stationary etc.
Indirect Labour : Office manager and accountant etc.
Indirect expenses : Rent and insurance etc.
Selling and distribution overheads :
Indirect material : Printing and stationary etc.
Indirect Labour : sales manager and sales peson etc.
Indirect expenses : Rent and insurance etc.[

7. Other Types
Fixed and Variable Costs:

8. Cost Estimation
When developing a business plan for a new or
existing company, product, or project, planners
typically make cost estimates in order to assess
whether revenues/benefits will cover costs.
This is done in both business and government.

9. Project management
Project management is the discipline of carefully
projecting or planning, organizing, motivating and
controlling resources to achieve specific goals and
meet specific success criteria.
A project is a temporary endeavor designed to
produce a unique product,
The primary challenge of project, management is
to achieve all of the project goal.

10. The project development stages

11. Project Cost Management Strategies
Effective Project Cost Management Is an Essential
Skill for Project Managers
Reallocation of Resources as a Method of Project
Cost Management
Project Cost Management Requires Awareness and
Creativity
Skills Required for Effective Project Cost
Management
Project Cost Management Training Programs.

12. What is cost analysis ?
Cost analysis also called economic evaluation.
Cost analysis is the review and evaluation of the
separate cost elements and profit in an offer's or
contractor's proposal.

13. Cost Analysis
Analysis of cost is measure total expenditure on project includes
expenses on
Raw material
Machine
Procedures
Instrumentation
Clinical trials etc.
-It is preliminary step
-Project depend on it
-Continuation or withdrawal of project

14. Cost Analysis
Total cost TC = FC + VC
Fixed cost - stays constant no matter what level of output
Variable cost - vary with the level of output.

15. AC can be broken down into two
components – AFC and AVC
Average Fixed Cost
since total fixed cost is a constant, dividing it by an increasing output.
Q
FC
AFC 
Average Variable Cost
VC divided by output
Q
VC
AVC 

16. Cost incurred on Raw material
Prepare list of Required Raw materials
Invite quotations
Raw material includes-
Starting material - chemicals, Extracts, reagents etc.
Comparative of cost
Decide total budget
Various glassware, equipment etc. compare-quality
necessity.

17. EXAMPLE : Raw Materials
Cost Table

18. Cost incurred on procedure
May not be similar to theory
Should be properly understood
Consider steps
Involves various preparations, reagents etc. enlist and
calculate.
Choose the proper and smallest (economic) procedure
Consider outsourcing.

19. E.g. Annual Operating Cost
Summary Table of Superpro

20. Cost incurred on instrumentation
No. of instruments are required
Whether to buy or outsourcing
Utilization if procured
Quotation
Fabrication
Suitably small scale instruments should be procured
May reduce the bulk of material used, easy to handle and
maintain
Add maintenance cost.

21. EXAMPLE : Equipment Purchase
Cost Table

22. Cost incurred on Clinical trials
Clinical trials are sets of tests in medical research and drug
development that generate safety and efficacy data (or more
specifically, information about adverse drug reactions and adverse
effects of other treatments) for health interventions (e.g., drugs,
diagnostics, devices, therapy protocols).[5]
 Requirements
 Cost
 Maintenance
 Experts

23. Phases
Preclinical Studies Clinical trials
In-vitro(test tube) Phase 0
In-vivo Phase 1
Future testing Phase 2
Phase 3
Phase 4

24. Cost of clinical trials

25. Conclusion
From this study we can conclude that the project
cost management is a very essential tool in the
research and day to day laboratory practices.

26. References
1. Cost-Wikipedia, the free Encyclopedia.
2. Project management-Wikipedia, the free Encyclopedia.
 Project cost management strategies, Vilanova university, USA,
ONLINE
3. Cost Analysis in Evaluation – University of Arizona (Kettner,
Moroney, & Martin, 1990.)
4. nisa.wikispaces.com/file/view/ANALYSIS+OF+COSTS.ppt
5. Cost Analysis of Project by Varsha V. Awasarkar.
Clinical trails-Wikipedia, the free Encyclopedia