COURSE # MGM-221
ENGINEERING MANAGEMENT: COST ESTIMATION, PLANNING, AND CONTROL OF PROJECTS
This course develops the skills needed to perform realistic cost estimates and use them effectively in economic analysis, budgeting, and managerial control.
There is an old saying that the man who relies on the seat of his pants to predict the future may soon lose his shirt. This saying illustrates the importance of cost-estimation to organizations, especially in a rapidly changing global, technology intensive and competitive environment. A timely and accurate estimate is important for timely and accurate decision making, and invariable profit. This course develops the skills needed to perform realistic cost estimates, use them effectively in economic analysis, budgeting, and managerial control.
Applications and benefits:
You will benefit by enhancing your understanding of:
- The importance of cost-estimation in proposal development and the life-cycle of a project.
- Common techniques and tools for project cost estimation and their usage.
- The concept of time value of money as it relates to economic analysis.
- Development of the skills for comparing and evaluating projects and alternatives using economic figures of merit.
- The basic principles of project cost control and variance analysis.
Who should attend:
This course is designed for first-line supervisors, project, program, and technical managers in technology focused organizations, both private and public. The case studies presented come from service and manufacturing industries as well as from the public sector. Senior level managers should also find the course an informative refresher for the latest advances in project management techniques.
Course Outline:
- Introduction
- Relationship between cost estimating, project planning and control
- Case study examples
- The Basics of Estimating
- The cost estimating process
- Types of costs
- Collecting data for estimates
- Cost Estimating Techniques
- Qualitative methods
- Quantitative methods
- Special Cases
- Software development
- Service Industry vs. Manufacturing Industry
- Learning curve
- Activity-based costing
- Using Cost Estimates for Comparing and Evaluating Projects and Alternatives
- Decision making process
- Types of alternatives
- That the time value of money and discounted cash flow concepts
- Techniques for Evaluating and Comparing Projects and Alternatives
- Payback period method
- Present worth method
- Annual worth method
- Internal rate of return method
- Benefit-cost method
- Life-cycle cost analysis
- Replacement analysis
- Principles of Budgeting
- Payback period method
- Types of budgets
- Budgeting process
- Project Cost Control and Variance Analysis
- Cost schedule control system
- Variance analysis
- Break-even analysis
- Sensitivity analysis
- Emerging Issues and Case Studies
About the Instructor
Dr. John O. Aje is Director of Technology and Engineering Systems and Associate Professor at the University of Maryland University College, Graduate School of Management & Technology. As the lad Administrator for advanced degrees in Technology Management and Engineering Management programs, Dr. Aje has structured the programs to produce managers for high-technology companies, large scale public and private technical organizations, and research institutions. He is an experienced practitioner and consultant in projects and large scale program management. He has lectured and written extensively in the field of technology management and is the Editor in Chief and founder of Technology Management Journal.
Dr. Aje received his B.S. and M.S. in Chemical Engineering from Clemson University and North Carolina State University respectively, and a M.S. and D.Sc. in Engineering Management from George Washington University.
Details:
Course: MGM-221 Duration: 3 Days FEE: $1,195 CEUs: 2.16
Please direct any additional inquiries regarding our courses to Anita Hellstrom, Program Coordinator, by e-mail, FAX: (301) 871-4942 or TELEPHONE: (301) 871-9608.
Call toll free 1-800-683-7267 from anywhere in the Continental U.S. or CANADA.
Last modified March 14, 1999.
