Cost unit 2013 part 1. 17 jan

Cost Unit BSBPMG504A Manage project cost

part 1.

Diploma Project Management Captain Cook College

Sharon Boyle

Welcome back Refresher re

◦ Project definition ◦ Project management plan

An Introduction & overview of Cost Unit◦ an overview ◦ Estimating techniques

Morning Tea◦ Video re Cost Estimating techniques◦ links to WBS◦ Discuss Assessment items

Lunch Start LMS reading & Questions

Lesson plan17 January

Friday 18 January Discussion re Assessment Items

◦ More detail around Assessment items for Cost Unit◦ Negotiate & agree date for Project management meeting◦ Structuring a cost management plan

Morning Tea Work on either cost management plan or LMS activitiesLunch Discuss answers for Activities 1 & 3 – leave Written/Oral to next

week Continue working on LMS24 & 25 January

◦ More detailed analysis - EVA ◦ Variations & Closeouts◦ Clarification on Assessments◦ Finish LMS activities◦ Project Meeting

Overview of balance of unit

The projects we are considering are characterised by the following:◦ the need for a comprehensive and multi-faceted project plan◦ the need for a formal internal or external communications

strategy◦ a dedicated and diverse project budget◦ multiple administrative components◦ multiple operational components◦ a wide range of stakeholders◦ a project operations team.

Video Project management plan ◦ http://www.youtube.com/watch?feature=endscreen&v=m

kymWoHY48Y&NR=1 This video is shown through youtube and this college acknowledges the

author as shown.

A refresher – Project management

1. Determine project costs 2. Monitor and control project costs 3. Conduct financial completion activities

Three basic elements within the Cost unit

Overview from PMBOK page 167

◦ Work up the resource requirements with input from stakeholders

◦ Estimate project costs & agreed cost management processes

◦ Develop & implement a cost management plan subject to Delegated authority Understanding of stakeholders & others Usefulness to management of project finances

1. Determine project costs

Cost estimating from WBS & resource schedules

Cost budgeting - aggregating Cost control – influencing factor impacting

on budgets & controlling impact on project

1.1 Estimating

Others may include: relevant project authority program manager project specialists or other personnel team members

Key Terms – determining project costs

Project costs are estimated to a level of accuracy available considering:◦ availability of information at the time◦ contingencies to allow for identified risks and

uncertainty◦ organisational requirements, for example

overhead and profit margin◦ stage of the project life cycle

Key Terms – determining project costs

Delegated authority means that activities will:◦ be conducted routinely or as changing circumstances

dictate◦ be done independently within broad guidance or by

taking the lead of a team◦ involve consultation with other project members,

teams and internal stakeholders◦ involve the selection, use and supervision of

appropriate time management methods, tools and techniques

◦ take into account internal organisational change and external environmental change

Key Terms – determining project costs

Trudy Robinson Cost estimating – part 1. http

://www.youtube.com/watch?v=hUBdN2slAbo&feature=relmfu

Types of estimating

Things to note from Trudy Robinson’s video

Morning Tea

Carry out the agreed financial monitoring – actual Vs baseline◦ Identify which cost analysis

methods are relevant ◦ Evaluate options◦ Report to those who need to know◦ Implement, monitor and respond

through out lifecycle. Costs do not let go at any

stage.

2. Monitor and control project costs

Next week we will look at ◦ Earned Value Management◦ Forecasting cost to complete◦ Performance reviews◦ Variance analysis

2.1 Tools & techniques to monitor & control costs

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?

3. Conduct financial completion activities

Let’s discuss Using Microsoft Project here is the best

training video http://

www.youtube.com/watch?v=sPwURRG9_Gs Hint; watch this a few times.

Cost & budget links to WBS

Welcome back Refresher re

◦ Project definition ◦ Project management plan

An Introduction & overview of Cost Unit◦ an overview ◦ Estimating techniques ◦ Video re Cost Estimating techniques

Morning Tea links to WBS Discuss Assessment itemsLunch Start LMS reading & Questions

Lesson plan17 January