Training in costing methods

Prerequisites

No prior knowledge required

Objectives

◗ Describe the fundamental principles of costing.

◗ Outline the key steps in a cost-estimation process, identifying the associated challenges and the roles of the various stakeholders involved.

◗ Analyze the components of a cost and how they change over time.

◗ Apply the main cost estimation techniques.

Training program

◗ Situate estimating in the project life cycle

– Cost Estimation Challenges by Maturity Stage (from bid to design to ramp-up)
– Cost Realization Curve vs. Commitment and Progressive Lock-in
– Roles of stakeholders in the cost estimation process
✔ UNDERSTAND | Illustration: VUCA environment and 4 external forces
✔ APPLY | Practical exercise: Positioning use cases on a 2-axis matrix
✔ EVALUATE | Quiz: In your opinion… What is the SWOT analysis of cost estimation?

◗ Choosing and combining estimation methods

– Analog, parametric, and analytical methods
– Choosing a method based on available data, time constraints, and expected accuracy
– Practical examples of each method
– Comparative study of evaluation methods (source: AACE)
✔ UNDERSTAND | Guided study: structured comparison of methods
✔ APPLY | Practical case study: Which method applies and at what phase of a project?
✔ EVALUATE | Quiz: In your opinion… Which method would you recommend in each case?

◗ Predictive modeling based on historical data

– Define key variables, product/system lifecycle, design and development processes, WBS, PBS, and CBS
– Use predictive cost estimation models with training and feedback loops
– Estimate recurring and non-recurring costs; quantify a learning curve
✔ APPLY | Practical Case: Use a parametric model to estimate a rocket
✔ EXPERIMENT | Hands-On Exercise: Build a learning curve based on production times
✔ EVALUATE | Quiz: In your opinion… What is the optimal number of parameters to achieve an acceptable error level?

◗ Integrating estimating into project management

– Translating an estimate into an objective, target cost, and target costing
– Cost drivers, factors of variability/uncertainty, and ways to bring them under control
– Cost optimization methods, design-to-cost, functional analysis, benchmarking, value analysis, creativity, concept evaluation
✔ UNDERSTAND | Illustration: estimation risk analysis grid
✔ APPLY | Practical case study with a project team: requirements specification, inputs and outputs, strategies and methods for re-evaluation, types of interaction?
✔ EXPERIMENT | Reflection: How to account for technical changes
✔ EVALUATE | Quiz: In your opinion… What factors influence cost levels?
✔ EVALUATE | Quiz: In your opinion… What are the main ways to reduce costs?

Why choose this course?

Whether in preparation for submitting a bid (in response to a request for proposals), as part of the investment evaluation process, or within the framework of a cost-reduction project (design-to-cost), estimating projected costs is a key input.

However, there are many different costing approaches and methodologies, and they do not all offer the same level of accuracy or reliability. Furthermore, the increasing volatility of market prices, combined with uncertainties surrounding macroeconomic variables, makes these costing activities even more critical.

As a management controller, it is therefore essential to understand the source of the figures you are provided with before using them in your analyses.

Teaching and assessment methods

Before the training: Submit your expectations via your online portal 15 days before the training begins and complete a self-assessment of your skills.

Teaching Methods: A variety of teaching methods to cater to different learning styles, encourage active participation, and reinforce learning through experimentation and practice.

Educational materials: presentation materials, reference materials (summary sheets, tables, etc.), and other resources available in your account.

During the training: theoretical concepts are alternated with examples drawn from real-life cases. Participants are given the opportunity to engage in role-playing exercises. Numerous practical exercises allow participants to demonstrate their mastery of the skills as the training progresses.

Training monitoring and evaluation: attendance sheet and certificate of completion. Immediate and post-training evaluations conducted using the LearnEval platform.

Price

1 295 € EXCL. TAX

Training in costing methods

Jonathan C.
Company
Training

Generalist trainings

Training in costing methods