Cost Estimation, Budgeting, and Value Engineering for IT Infrastructure

Introduction:

Understanding human perception of sickness requires a broader perspective than just physical acts and technical devices. The interaction between individuals, their environment, and their internal states is crucial. This course explores IT infrastructure cost estimating, budgeting, and value engineering, emphasizing that medical science and IT project management both benefit from holistic and strategic approaches.

Objectives:

By the end of this Cost Estimation, Budgeting, and Value Engineering for IT Infrastructure course, participants will be able to:

• Learn the process of estimating IT services costs from the conceptual to the final detailed estimates stage.
• Prepare reliable cost estimates at appropriate stages of project development.
• Learn the foundations of Value Engineering and Value Analysis.
• Implement value engineering to assess the IT project scope.
• Understand what information is required for large-scale integration of the IT project scope.
• Collect and organize cost data on significant service elements.
• Communicate effectively with management and stakeholders to propose options that maximize project value.
• Demonstrate proficiency in cost estimation and application of costing techniques.
• Provide well-substantiated reasons for project alternatives with enhanced value.
• Integrate all necessary project components into a cohesive and comprehensive cost estimate.
• Prepare budget estimates to help decision-makers assess project feasibility.
• Identify different strategies or technical techniques for cost and quality management.
• Monitor and control the dynamic costs throughout the project lifecycle.
• Produce reliable estimates for budgeting during different design stages.
• Acquire expertise in preparing and managing the tendering process.
• Manage the interface between organizational expectations and project value addition.
• Apply a team-oriented approach to maximize project benefits through diverse and organized strategies.

Training Methodology:

• Facilitated lectures
• Project work
• Brainstorming
• Games
• Drama
• Exercises
• Case studies
• Self-directed learning with supervision

Course Outline:

Unit 1: Cost Estimating Basics

• The estimated life cycle
• Phases of the Design Process:
  • Programming phase
  • Schematic design
  • Design development
  • Construction documents
• Estimate preparation for all costs by phase
• Conceptual Cost Estimates
• Assemblies cost estimates
• Cost accounting
• Semi-detailed Estimates (Narrow Scope Estimates)
• Definitive Estimates (Detailed Scope Estimates)
• Handling basics
• Methods of bidding
• Method of arguing in favor of the contract
• Norms and Forms of Contracts

Unit 2: Broad Scope Cost Estimating Techniques

• Adjustment to Project Cost for Broad Scope Estimates
• Study on Virtual Data Center costs
• Estimation of SDWAN Expenses
• Definitions of Estimating Formulas
• Z-Value determination
• Estimate of Completion Probability for the Project
• Project Costs Estimation at Particular Probabilities
• Modifications to Estimate Based on Historical Information
• Review of Time Value of Money
• Adjustments for Weight
• Change order reasonable price adjustment
• Estimate Costs based on Globalization
• Learning Curves

Unit 3: Price Estimates

• Bid requests
• Estimation of costs directly
• Contract provisions for changes in work quantity
• Analysis of risk
• Economic Bid process

Unit 4: Market Analysis

• Market intelligence and research
• Marketing analysis process and competition levels
• Market segmentation and target selection
• Purchasing and procurement journey
• Competitor inspection

Unit 5: Estimating Process

• Estimate by design stage
• Programming budgeting estimates
• Schematic design budgeting estimates
• Design development budgeting estimates
• Estimate for pre-construction services
• RFP
• Anticipating and estimating pre-construction service costs
• Contract for Pre-Construction Services

Unit 6: Estimating for Successful Bid Contract

• Preestimate activities
  • Estimate process
  • Work Breakdown Structure
  • Estimate team
  • Schedule for estimating work
  • Accuracy and error prevention
• Construction price updates
• Recap sheet
• Cost pricing
• Abstract recap
• Project summary and other methods
• Bid summary
• Final markups

Unit 7: Estimating Under Negotiated Contract

• Guaranteed Maximum Price Estimates
• Estimate process
• Contingencies
• Fee for negotiated contract
• Reimbursable and Non-reimbursable expenses
• Risk analysis
• Fee schedule
• Responding strategies to RFP
• Subcontracts negotiation
• Proposals for negotiated work costs

Unit 8: Narrow Scope Cost Estimation Techniques

• Power-sizing techniques
• Ratio criteria
• Cost Estimating Relationships (CER)
• Economic estimates
• Improvements by Project Type and Quality Level
• Parametric Cost Estimating
• Analysis of Estimating Accuracy

Unit 9: Framework for Applying Value Engineering in Projects

• Principles and concepts of Value Engineering
• Objectives of Value Engineering and Value Analysis
• Advantages and limitations
• Implementation strategies
• Define and initiate IT Project
• Project scope and charter creation
• Linkages between Value, Cost, and Worth
• Value Engineering Process stages
• Information Phase of Value Engineering

Unit 10: The Function Analysis Phase

• Functional analysis
• Identifying project constraints
• Estimating costs for conceptual design
• Function-Cost-Worth Analysis System
• Technical FAST-model evaluation
• Case Study
• Functional Team Approach

Unit 11: The Creative Phase

• Creativity and creative thinking
• Individual vs. group thinking
• Creative tools for valuation
• Barriers to team creativity
• Solutions and support communication
• Delphi method for project investment priority

Unit 12: The Evaluation Phase

• Screening project ideas
• Evaluation methods
• Quantitative and subjective analysis
• Project life-cycle costing
• Market development forecast
• Decision-making within a project

Unit 13: The Planning and Reporting Phases

• Create and analyze VE proposals
• Communication with Senior Management and stakeholders
• Enhance presentation and interpersonal skills
• VE as part of Continuous Improvement