This document discusses cost management for projects. It begins by defining cost and different types of costs like material, labor, expenses and overheads. It then discusses estimating project costs, different stages of project development and analyzing costs incurred on raw materials, procedures and clinical trials. Effective project cost management requires skills like cost analysis and awareness of fixed and variable costs. The total cost of a project is the sum of fixed and variable costs.

1. Presented By
Mr. Mitkari Jayshankar Vijaykumar
M.Pharmacy
Department of Pharmaceutics
Under the guidance
Of
Prof. Tare H. L.
Project - Cost Management
Sharadchandra Pawar College Of Pharmacy,
Dumberwadi, Otur.

2. Sr. No Content
1 Cost
2 Elements of cost
3 Cost estimation
4 Project management
5 Project development stages
6 Project cost management
7 Cost analysis
8 Cost incurred on raw material
9 Cost incurred on procedure
10 Cost incurred on clinical trials
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3.  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]
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Project- Cost
Management

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Project- Cost
Management

5.  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.[1]
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Project- Cost
Management

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.[1]
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Project- Cost
Management

7.  Fixed and Variable Costs[1]
Fixed Cost Variable Cost
Management salaries Testing supplies and reagents
Allocated hospital Overhead Specimen collection supplies
Equipment repair and
maintenance
Testing personnel salaries
Depreciation of testing
equipment marketing costs
Office supplies telephone
expenses
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Project- Cost
Management

8.  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.[1]
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Project- Cost
Management

9.  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.[2]
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Project- Cost
Management

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Project- Cost
Management

11.  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.[1]
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Project- Cost
Management

12.  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.[3]
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Project- Cost
Management

13.  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[3]
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Project- Cost
Management

14.  Total cost TC = FC + VC
 Fixed cost - stays constant no matter what level of
output
 Variable cost - vary with the level of output.[4]
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Project- Cost
Management

15. 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[4]
Q
VC
AVC 
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Project- Cost
Management

16.  Raw material includes-
◦ Starting material - chemicals, Extracts, reagents etc.
 Prepare list of Required Raw materials
 Invite quotations
 Comparative of cost
 Decide total budget
 Various glassware, equipment etc. compare-quality
necessity.[5]
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Project- Cost
Management

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Project- Cost
Management

18.  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.[5]
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Project- Cost
Management

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Project- Cost
Management

20.  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[5]
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Project- Cost
Management

21. Sharadchandra Pawar College Of Pharmacy, otur. 21
EXAMPLE : Equipment Purchase
Cost Table[5]
Project- Cost
Management

22. 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
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Project- Cost
Management

23. Sharadchandra Pawar College Of Pharmacy, otur. 23
Preclinical Studies Clinical trials
In-vitro(test tube) Phase 0
In-vivo Phase 1
Future testing Phase 2
Phase 3
Phase 4
Project- Cost
Management

24. Sharadchandra Pawar College Of Pharmacy, otur. 24
Project- Cost
Management

25. 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.
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Project- Cost
Management

26. 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
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