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Using, case studies, exercises & discussion, this seminar will address the fundamentals of project cost control including project life cycle, project development, planning, scoping, estimating, risk analysis, procurement, earned value analysis, & more.


 
Course Outline
In an industrial plant, capital projects add value to a company’s operations. The project costs can vary from a minimum of $5000 to whatever size the company can handle. The problem companies have with capital projects is how to allocate the scarce resource (money) to the maximum benefit of the company. Some factors that go into choosing which project gets done include, what the competition is doing, the companies long range plans, return on investment (ROI), and risk. ROI is very important and the company is only going to do the project if they can make a return on their money. Think of all the projects you know about that were over budget. What effect did that have on the ROI and did it add value or cost the company money? As you know, controlling costs becomes very important to keep the project on track and within budget. It is imperative the costs be controlled during all phases of the project, not just the construction phase. You have to control anything that incurs a cost against the project, and you can only control the costs if you know what goes into making up the total project cost. You have to set up the project so the costs can be easily identified and controlled.

Using, case studies, exercises and discussion, this seminar will address the fundamentals of project cost control including project life cycle, project development, planning, scoping, estimating, risk analysis, procurement, earned value analysis, and managing changes. Project cost control is a lot of work and is a team effort if success is to be achieved. In theory project cost control sounds easy, but it is a lot more difficult to put into practice especially, if the input information is not correct.

Objectives To provide participants with the practical, fundamental knowledge of project planning and cost control that can be put into practice immediately to increase chances of project success.

Topics discussed will include:
1.   Scope/Schedule/Budget/Resource Relationship
2.   Project Life Cycle
3.   Project Cost Control
4.   Budgets
5.   Project scope development
6.   Project Planning and Work Breakdown Structure
7.   Project Stakeholders
8.   Estimating Methods and Estimate Matrix
9.   Risk Analysis
10. Procurement
11. Bidding
12. Earned Value Analysis for Project Tracking
13. Managing Changes

Who Should Attend This course is designed for those involved in planning and implementation of capital projects, i.e. engineers, technologists and technicians, tradesmen, maintenance personnel, and other personnel from industries, utilities, municipalities, educational institutions, commercial facilities, consulting engineering firms and manufacturers. Topics covered in this course are also of great value to managers and other non-technical project personnel.

Program Outline Instructor: Morley Selver

Day 1

Module 1 Cost Control and Scope / Schedule / Budget / Resource Relationship

At the end of this session the Learner will be able to describe what is meant by:
• scope/schedule/budget/resource relationship to project cost control
• cost control
• describe the project life cycle and how it relates to project cost  
  control
• A project

Module 2- Earned Value Analysis
At the end of Session 1, learners will be able to:
• Identify the key elements of a project that must be controlled.
• Interpret information that results from an earned value analysis.
• Describe why it is important to implement scope control for a
  project.

Exercise - EVA
• The purpose of this activity, using simple cases, is to show how the
  EVA numbers are developed and give a visual representation of
  what the numbers mean when plotted on an S-curve.

Module 3 - Budgets

At the end of this session Learners will be able to:
• Understand the typical 3 budgets
• Explain resource (money) allocation and its’ importance to the
  project.
• Define Rate of Return and what it means to a project.
• Use an Estimate Matrix to determine deliverables
• Develop their project risk issues.

Exercise / Discussion - Risk Issues
• The purpose of this exercise is to have Learners work in a group to
   list the risk issues they see on their projects. This list that can be
   used for the risk analysis exercise later on as well as a list they can
   use on their projects back at the office.

Module 4 - Work Breakdown Structure

At the end of this session the learner should be able to develop a WBS
Exercise - WBS Case Study
• The purpose of this case study is to practice the development of a
  WBS for a real project.

Module 5 - Project Authorization Documentation and Scope Issues

At the end of this session the Learner will be able to:
• Describe the components of the generic authorization  
  documentation.
• Explain the importance of a baseline scope and how it relates to
  cost control
• Use a checklist to develop a more complete project scope.
• Describe Management of Change
• Explain the need for approval limits
• Define and use the Backcharge documentation.
• Use for the Pareto Rule for defining cost control problems.

Exercise - Developing scope
• The purpose of this exercise is to practice using a checklist to
  develop project scope.

Exercise – Unidentified Risk Case Study

• The purpose of this case study is discus how to resolve project
  control issues for a project that did not have any project
  management controls with unidentified risks. Highlights the need to
  follow project management procedures for proper cost control.

Module 6 - Stakeholders and Risk Analysis
At the end of this session the Learner will be able to:
• Use three environmental scanning tools to identify potentially
  relevant stakeholders and risk issues.
• Evaluate relevant stakeholders and risk issues in terms of depen
  dency, risk, and control.
• Determine which stakeholders and risk issues need special attention  
  from management.
• Proactively manage key stakeholders and risk issues (or their ef
  fects on the project), for example, by trying to decrease the project’s
  dependency on them

Exercise - Risk Case Study

• This case study will give the Learners the opportunity to do a risk
   analysis of a real project and get a feel for how risk can affect their
   project costs. They can use the list from Module 3 to analyze the
   problem.

Day 1 Summary

Day II
Module 7 - Estimating
At the end of this session the Learners will :
• Be able to recognize project hidden contracts.
• Be able to define the different methods of estimating
• Learn how to control currency fluctuations in their projects.
• Know the questions to ask to determine if the estimate is viable
• Define the different terms for items that make up contractors rates.

Exercise - Escalation Case Study
• This case study will give the Learners the opportunity to work a real  
   life escalation situation that project managers have to address
   Discussion - Freight - a hidden contract that can affect the project
   cost

Module 8 - Engineering Issues, Project Cost Control, Managing Changes, Reporting
At the end of this session, the learners will be able to:
• Identify at least three common problems that project managers face
  with reporting systems.
• Distinguish between reporting, monitoring, and evaluation.
• Explain the contents of a cost report
• Describe managing change control for changes in scope and
  changes in design.

Exercise / Discussion- Never Ending Scope Creep
• The purpose of this exercise is to practice resolving a project
   problem where the scope is not clear, no project management
   controls and personnel changes take place.

Module 9 - Procurement
At the end of this session learners will be able to:
• Define procurement terms
• Describe the role of the project manager in the procurement process
• List at least 2 common procurement mistakes
• Characterize the differences in procurement methods recommended
  for procuring (a) works, (b) services, and (c) goods

Exercise - Bundling Contracts
• The purpose of this activity to give the learners practice in the
  decisions to be made for, and in the analysis of, procurement planning

Module 10 - Contract Types and Other Options
At the end of this session, learners will be able to
• Identify the principal advantages and disadvantages of contract and
  force account and labor and the circumstances in which each may
  be most appropriately used.
• List the advantages and disadvantages of (a) contracts based on mea
  sured output and (b) cost-reimbursable contracts.
• Determine other options to contracts and the circumstances to use them.

Exercise - Choice of Contracts
• The purpose of this activity is define the appropriate method of
   contracting for a variety of scenarios.

Module 11 - Bidding Procedures, Bid Evaluation, (Works, Goods, Consultants)
At the end of the session Learners will be able to:
• Describe the difference between a RFQ and a RFP
• Explain why bids are required
• List the contents of a bid document
• Develop and use a Plant Conditions and Standard Component List
• Develop and use a Vendor Document Requirements
• Explain the importance of the Vendor Information Requirements
  document
• Describe the bid evaluation process and characterize the major 
  activities and issues.
• Describe the problems that arise from (a) deficiencies in bids and (b) challenges to selection and how these problems may be addressed.

Exercise - Handling Bid Questions

• The purpose of this activity is to discuss some of the complications
  that may arise during the bidding period and to debate how they can, or
  should, be handled by the owner.

Exercise - Evaluating Unit Price bids.

• The purpose of this exercise is to give the Learners a method of
  evaluating unit prices to determine which contractor has the lowest bid.

Workshop summary

There will be a one lunch break each day in addition to a refreshment
and networking break during each morning and afternoon session.

After Participating in this Course, You will be Able to:

  • Maintain project cost control through an understanding of the project life cycle and the critical project relationship of scope, schedule, budget, and resource.
  • Build a work breakdown structure for project planning purposes.
  • Quickly develop your project scope for more complete estimates and better cost control.
  • Use the estimate matrix to determine what cost control information is needed for each phase of the project.
  • Evaluate  your project risk issues and how risk affects your project costs.
  • Develop more accurate and complete project authorization documentation, saving you time, effort and better progress monitoring.
  • Analyze your project status using earned value analysis, which is the preferred method of project progress monitoring.
  • Apply the concepts learned to manage changes to the project scope, schedule, and budget
  • Provide project leadership by accessing project control problems and using your newly acquired knowledge, determine the best course of action for the project.
  • Control your project by understanding and acquiring the information needed for performance monitoring. 
  • Advance your career by having the tools to better manage your projects
  • Stand out from your peers by having successful projects.

Daily Schedule
8:00         Registration and Coffee (1st day only)
8:30         Session begins
4:30         Adjournment
Prerequisites & Certificates
Pre-Requisites

Certificates offered

1.2 CEUs/ 12 PDHs


Cancellation Policy
To withdraw from a course, you must send a request, in writing, with the official receipt to our office. Fifteen or more business days in advance: full refund less $50.00 administration charge. Five to fifteen business days in advance: non-refundable credit of equal value for any future EPIC seminar within one year. Credits are transferable within your organization. In case of an unexpected event occurring after this time, you may send someone else to take your place without any additional cost.
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EPIC Educational Program Innovations Center
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Here are some reviews of the training vendor.
The course was very well presented and the course instructor was absolutely amazing.
Reviewed by 2013
Our instructor, Stephen Lamming, was outstanding and a true expert in his field. He was able to complement the technical air monitoring information with practical real life examples which was highly beneficial. He is an excellent communicator and was highly interactive with the course attendees. This course was recommended to me because Stephen Lamming does an outstanding job. I was very impressed with this course and have subsequently recommended it to my colleagues.
Reviewed by 2012
Would have liked more interactive problem solving.
Reviewed by 2011
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