Understanding and implementing
Target audience
- Project managers
- Quantity surveyors
- Sales representatives
- Management controllers
- Management control directors
- Financial directors
- Non-financial managers
1 day
Prerequisites
Training in costing methods
No prior knowledge is required.
Objectives
◗ Describe the fundamental principles of costing
◗ Present the key stages in a costing process, identifying the associated issues and the role of the various players involved.
◗ Analyze cost components and their evolution
◗ Apply the main cost estimation techniques
Training program
◗ Situate estimating in the project life cycle
- The challenges of costing according to maturity (from bid to design to ramp-up)
- Cost realization curve versus commitment and progressive lock-in
- Role of stakeholders in the costing process
✔ UNDERSTAND | Illustration: VUCA environment and 4 external forces
✔ APPLY | Case study: positioning use cases on a 2-axis matrix
✔ ASSESS | Quiz: what do you think... What's the SWOT of costing?
◗ Choosing and combining estimation methods
- Analog, parametric and analytical methods
- Choosing a method according to available data, lead times and expected accuracy
- Concrete illustration of each method
- Comparative study of evaluation methods (source: AACE)
✔ UNDERSTANDING | Guided study: structured comparison of methods
✔ APPLY | Case study: which method applies to which phase of a project?
✔ EVALUATE | Quiz: in your opinion... Which method do you recommend in each case?
◗ Predictive modeling based on historical data
- Define key variables, product/system life cycle, design and development processes
development processes, WBS, PBS and CBS
- Use predictive costing models with training and feedback loops
- Estimate recurring and non-recurring costs, quantify a learning curve
✔ APPLY | Case study: using a parametric model to estimate a rocket
✔ EXPERIMENT | Case study: building a learning curve on production times
✔ ASSESS | Quiz: in your opinion... What is the optimum number of parameters to
an acceptable level of error?
◗ Integrating estimating into project management
- Translating estimates into objectives, target costs and target costing
- Cost drivers, variability/uncertainty factors and ways of controlling them
- Cost optimization methods, design-to-cost, functional analysis, benchmarking,
value analysis, creativity, concept evaluation
- Evolution index measurement and link with performance
✔ UNDERSTAND | Illustration: estimation risk analysis grid
✔ APPLY | Practical case with a project team: expression of need, inputs and outputs, strategies and means of questioning, types of interaction?
✔ EXPERIMENTATE | Reflection: how to take technical changes into account?
✔ 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?
Upstream of a bid submission (in response to a specification), in the process of evaluating an investment, or as part of a cost reduction project (design to cost), estimating the forecast level of costs is a major input. However, there are numerous costing approaches and methodologies available, each with different levels of precision and reliability. And the increasing volatility of market prices, coupled with the uncertainty of macro-economic variables, makes costing even more critical. As a management controller, it is therefore essential to know the origin of the figures you are given before using them in your analyses.
Teaching and assessment methods
Before: self-assessment quiz
During the session: alternating theoretical developments and illustrations drawn from real-life cases. Numerous case studies are used to validate the acquisition of skills as the training progresses.
Afterwards : the trainer is available to answer any questions relating to the training.
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Price
1,295€ EXCL. TAX
Training in costing methods
Training in costing methods
Training in costing methods
Training in costing methods
Jonathan C.
Company
Training