Lecture 01 - Introduction to PCM

Project Cost Management

Ahmed Aslam PMP, MPM, ACCA

Introduction to

Ahmed Aslam a.aslamazad@gmail.com

CREDENTIALS • Project Management Professional (PMP) Project Management Institute, USA

• Masters in Project Management (MPM) Szabist, Islamabad

• Chartered Certified Accountant (ACCA) Association of Chartered Certified Accountants, UK

EXPERIENCE • Vice-President Strategy/PMP trainer

Project Management Institute Islamabad Chapter

• Director Projects Company operating in the HVAC & Energy sector

• Project Management Instructor Project Finance, Cost, Risk & Change Management

INSTRUCTOR’S PROFILE

BACKGROUND CHECK

• Name

• Qualification

• Profession

• Expectations

THE RULES

• Class attendance • Max of 3 Absents/Leaves

• ½ Absent for late coming

• Disqualification on 4th absent

• Constructive discussion • Discussion driven lectures

• Speak on your turn

• No cross arguments

• Use of Mobile phone • Strictly not allowed

• Fine & confiscation

• Breaks • 20 mins at mid time

• Be back on time

CLASS REPRENSENTATIVE ?

• Responsible for Information exchange between the instructor and students

• Assist the Instructor for managing & conducting the class lecture

ASSESSMENT CRITERIA

Pre-mid Quiz 5 marks

Pre-mid Project 10 marks

Mid-term exam 30 marks

Post-mid Quiz 5 marks

Post-mid Project 10 marks

Final exam 40 marks

TOTAL 100 marks

Week 01 – Introduction to Project Cost Management

• Week 02 – Planning Project Costs

• Week 03 – Estimating Project Costs

• Week 04 – Determining a Project Budget

• Week 05 – Class activity/practice questions

• Week 06 – Quiz, Problems & Revision

• Week 07 – Project Presentation

• Week 08 - Mid-term Examination

• Week 09 – Controlling Project Costs

• Week 10 – Earned Value Management

• Week 11 – Earned Value Management (cont.)

• Week 12 – Forecasting techniques

• Week 13 – Class activity/practice questions

• Week 14 – Quiz, Problems & Revision

• Week 15 – Project Presentation

• Week 16 - Final Examination

COURSE OUTLINE

• Review Project Management basics

• Introduction to Project Cost Management

• Project Cost Management processes

LECTURE OUTLINE

PROJECT MANAGEMENT

Projects & Operations

Program, Portfolio & Strategy

The five process groups

Ten knowledge areas

The triple constraints

Project Management Office

Role of a Project Manager

PROJECT COST MANAGEMENT

• Cost is the measurement of resources that

must be expended in order to obtain an object

or complete an activity

• Project Cost Management is a series of

activities for planning, estimating, allocating,

and controlling costs within the project

PCM PROCESSES

• Plan Costs

• Estimate costs

• Determine Budget

• Control costs

PLAN COSTS

Establish policies, procedure and documents for managing costs throughout the project

ESTIMATE COSTS

• Developing an approximation of

the monetary resources needed

to complete project activities

• Prediction that is based on the

information known at a given

point in time

DETERMINE BUDGET

The process of aggregating the estimated costs of

individual activities or work packages to establish an

authorized COST BASELINE

CONTROL COSTS

The process of monitoring the status of the project to update the project budget and managing changes to the

COST BASELINE

LEARNING OUTCOMES

• Revision of Project Management basics

• What is Project Cost Management

• Project Cost Management processes