Project Financial Management: Scheduling, Budgeting, and Expense Control

Introduction:

Managers and customers expect value for money, and poor budget management is a common reason for project cancellations or failures. The Project Financial Management, Scheduling, and Budgeting course equips participants with practical methods to establish a cost baseline and implement a cost management system that supports budget oversight throughout the project life cycle.

This course provides comprehensive knowledge in financial project management, covering core principles and methods of scheduling, estimating, budgeting, and cost control. It is tailored for professionals involved in financial project management, with a focus on applying financial project management software, techniques, and practices.

Objectives:

By the end of this course, participants will be able to:

• State the benefits of effective project cost control in enhancing project success.
• Apply cost-reducing measures that avoid negative impacts on the organization.
• Define the term "financial management" and outline the project financial management life cycle.
• Describe the necessary actions at each stage of the project financial management life cycle.
• Identify key cost features for effective management.
• Improve project estimates, budgeting, and cost baselines.
• Use Earned Value Management (EVM) to assess project performance.
• Prepare management reports and forecasts, including EVM and deviation analysis.
• Apply the cost management process in practical scenarios.

Training Methodology:

• Case Studies
• Simulation Exercises
• Workshops
• Seminars
• Group Work

Course Outline:

Unit 1: An Overview of Project Management

• Basic Project Management Definitions
• Project Management Processes (PMI PMBoK)
• Project Phases and Life Cycle
• Common Project Terminology
• Foundation for Success
• Project Cost Management System Processes

Unit 2: Developing the Project Schedule – Estimating Cost

• Inputs for Estimating Cost
• Work Breakdown Structure (WBS)
• Work Packages and Estimation Techniques
• Revising the Schedule
• Total Project Cost Estimation

Unit 3: Developing the Project Budget – Determining Budget

• Inputs for Determining the Budget
• Estimation of Personnel, Materials, Equipment, and Overheads
• Aggregating Costs
• Risk Management and Contingency Reserves
• Using S-Curve for Risk and Costs

Unit 4: Control Accounts Application and Efficient Control of Project Costs

• Implementing Control Accounts and Control Account Plans (CAPs)
• Actions for Appropriate Control
• Change Control and Re-Baseline Processes
• Controlling Hours Worked and Costs

Unit 5: Project Performance Measurement, Interpretation, and Communication of EVM Outcomes

• Introduction to Earned Value Management (EVM)
• Key Indicators of EVM
• Performance Evaluation and Prediction
• Correcting Significant Variances
• Formulating Mitigation Strategies
• Presenting EVM Reports to Management and Clients