PROJECT PLANNING, Schedule and Cost Estimating Skills. H.H. Sheik Sultan Tower (0) Floor Corniche Street Abu Dhabi U.A.E
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1 PROJECT PLANNING, Schedule and Cst Estimating Skills H.H. Sheik Sultan Twer (0) Flr Crniche Street Abu Dhabi U.A.E
2 Curse Intrductin: The late deliveries f prjects have becme the scurge f prject prfessinals wrldwide. Cuntless numbers f prjects undertaken by rganizatins in the private and public sectrs significantly verrun the prject schedule and budget, and as a cnsequence fail t achieve the rganizatin's financial and strategic bjectives, ften with sizable increases in csts and with substantial financial lsses t the rganizatin. Why? This is due mainly t the failure f many prject prfessinals t successfully apply the tls and techniques f mdern prject planning, scheduling and cntrl t their prjects. Likewise, the develpment f reliable cst estimates during the design and early cnceptual stages f a prpsed prject are f critical imprtance t the success f the prject. The decisin t prceed with a prject is ften based almst exclusively n early cnceptual cst estimates, and these estimates prvide the basis fr the cash flw prjectins and frecasts used during the prject feasibility study. Unreliable cst estimates can result in significant cst verruns later in the prject life when it is t late t cntain them. In additin t the ptential financial lsses suffered by the rganizatin, many such prjects subsequently fail t deliver the required quality f utcmes intended fr the prject as a direct cnsequence f pr estimating. Budgeting inaccuracies inevitably result in lwer quality wrkmanship and materials. The estimating techniques and prcesses cvered in this curse will prvide delegates with the necessary skills t frecast accurately the anticipated csts f prjects with a fcus n budget estimates, estimates fr pre-cnstructin services, estimating cntractr and sub-cntractr wrk, estimating general cnditins, pricing self-perfrmed wrk, estimating negtiated cntracts, and perfrming lump sum and unit-price estimates. This brand new day curse will significantly enhance the skills and knwledge f delegates and imprve their ability t prperly plan and schedule their prjects, as well as perfrm estimates at bth the cnceptual and detailed levels, and t cmpare feasible alternatives quickly and efficiently. Curse Objectives: The Primary Objectives f the Seminar are t help delegates t: Gain knwledge f techniques used in resurce planning and cntrl. Understand the time-cst trade-ffs. Identify risk surces and minimize their impact and learn hw t sustain prject mmentum. Learn hw t administer prject dcumentatin and reprting. FN108 REVISION 000 PAGE 2 OF 11
3 Develp effective perfrmance mnitring and cntrl systems. Gain knwledge f techniques used in prject estimating, frm the cnceptual stage t the final detailed estimate Understand the different types f estimates used t accurately and prgressively estimate prject csts Understand the different types f cntracts based n the distributin f risk between cntracting parties Effectively apply incentive arrangements t get the best results frm the cntract This Fundamental Prgram takes the practice f prject planning, scheduling and estimating t a new level t ensure maximum results The mst recent develpments in the field are included t prvide fresh inputs t yur prject management effrts The curse takes a practical rather than a theretical apprach by intrducing a case study s that new skills can be applied with immediate effect High quality vides f substantial prjects f different kinds are screened and discussed during the seminar Grup activities and exercises will ensure mastery f the practical applicatin f new skills learned The use f sftware prgrams t facilitate the incrpratin f many advanced techniques are intrduced Related prject management fields such as risk are cntinuusly incrprated t prvide an integrated view f the ttal prject management prcess Delegates will have excellent pprtunities fr interactin and discussin f best practices at their respective rganizatins This curse will equip delegates with the skills and knwledge t significantly imprve all levels f prject estimating and cntrl in the rganizatin The prgram will be an imprtant stepping stne in terms f persnal career develpment in that it prepares delegates fr the internatinally recgnized Prject Management Prfessinal (PMP) exam Wh Shuld Attend? This curse is designed fr prject planning engineers, prject cst estimatrs, prject designers, prject planners and schedulers, cntracts prfessinals, prject prcurement and purchasing staff, and prject cntrl and business services prfessinals wh have the respnsibility fr preparing cst estimates and prject prpsals in client and cntracting cmpanies. FN108 REVISION 000 PAGE 3 OF 11
4 Curse Outline: Prject Scheduling & Cntingency Planning Skills Prject Scpe Planning and Definitin (Fundamentals) Scpe Planning Wrk Breakdwn Structures (WBS) Wrk Packages Statement f Wrk (SOW) - Technical Baseline Scpe Executin Plan Triple Cnstraints - Time, Cst, Scpe Prject Quality Issues Prject Risk Analysis Prject Deliverables Resurce Requirements Prject Schedule Planning and Critical Path Methd Precedence Netwrk Diagramming Jb Lgic Relatinship Chart Critical Path Analysis Prject Flat Analysis Lead and Lag Scheduling Activity Duratin Estimatin Milestne Charts Gantt Chart - Schedule Baseline Prject Estimating Prcesses Prductin and Prductivity Planning Resurce and Cst Allcatin Resurce Allcatin and Resurce Levelling Management f Resurces Planning and Scheduling Limited Resurces Resurce Allcatin Algrithms fr Resurce Priritizatin Slving Resurce Cntentin Resurce Levelling when Prject Duratin is Fixed The Brks Methd f Resurce Allcatin Increasing the Wrkfrce Slving Interruptins t the Schedule Scheduling Overtime FN108 REVISION 000 PAGE 4 OF 11
5 Accelerating the Prject Schedule Circumstances Requiring Prject Acceleratin Time-Cst-Scpe Trade-ff Prject Time Reductin Direct Prject Csts Indirect Prject Csts Optins fr Accelerating the Schedule Crashing the Schedule - Hw? Pre-Accelerated Schedule Develping a Crash Cst Table Acceleratin in Practice The Optimal Acceleratin Pint Gantt Chart fr Accelerated Schedule Netwrk Activity Risk Prfiles Additinal Cnsideratins Multiple Critical Paths Prject Cst Reductin Prject Cntingency Planning Prgram Evaluatin and Review Technique (PERT) Path Cnvergence Analysis Slving the Path Cnvergence Prblem Netwrk Risk Prfile Types Nrmal Distributin PERT, Prbability and Standard Deviatin Frmulae Calculating the Standard Deviatin Standard Deviatin fr Critical Path Z-Values: The Prbability f Prject Cmpletin at a Required Date True Critical Path Netwrk Activity Risk Prfiles Applicatin: Estimating Prject Duratin Line f Balance Scheduling - The Planning f Recurring Activities Preparing a Line f Balance Schedule Velcity Diagrams and Linear Scheduling Velcity Diagram Prductin Rate Calculatins Linear Sequence f Activities as a Series f Velcity Diagrams Balancing the Schedule Calculatins fr a Line f Balance Schedule FN108 REVISION 000 PAGE 5 OF 11
6 Line f Balance Frmulae Target Units per Week Determining Crew Size Actual Rate f Output Time t Cmplete One Activity Elapsed Time fr Recurring Activity Slpe f Line frm Activity Start t Activity Finish Balanced Prject Schedule withut Buffers (Finish-Start) Inserting Buffers Cmparisn f Unbalanced with Balanced Schedules Measuring Planned Prgress n Schedule Velcity Diagram Reflecting Expected Cnditins Actual Prgress and Wrk Cnditins Variable Cnditins Prject Executin Management, Cntrl and Reprting Prgress Tracking and Mnitring Prject Cst Management Earned Value Cntrl Prcess Schedule Variances Cst Variances Prgress Cntrl Charts - Trend Analysis Schedule and Cst Variance Frecasting Labur Management and Cst Cntrl Materials Management and Cst Cntrl Earned Value Analysis Earned Value Reprting Prject Recvery Plan Develpment Prject Variance Analysis and Quantificatin Schedule Perfrmance Index (SPI) Cst Perfrmance Index (CPI) Setting Schedule and Cst Cntrl Limits Prject Recvery Data Assessment Schedule and Cst Recvery Analysis Schedule and Cst Recvery Plan Prject Recvery Baselines and Cntrls Prject Cst Estimating Skills FN108 REVISION 000 PAGE 6 OF 11
7 Cst Estimating Basics The estimating life cycle Phases f the Design Prcess Prgramming phase Schematic design Design develpment Cnstructin dcuments Estimating accuracy by phase Cnceptual Cst Estimates Rugh Order f Magnitude Estimates (Brad Scpe Estimates) Assemblies cst estimates Cst indices Semi-detailed Estimates (Narrw Scpe Estimates) Definitive Estimates (Detailed Scpe Estimates) Basic prcedures Lump-sum cntracts Unit-price cntracts Cst-plus cntracts Cst-plus cntract with guaranteed maximum price (GMP) Time-and-materials cntracts Bid methd Negtiated methd Quantity take-ff Types f cnstructin cntracts Prcurement methds Pre-cnstructin services Risk analysis and cntingencies Brad Scpe Cst Estimating Techniques Adjustments t Prject Cst fr Brad Scpe Estimates PERT Prject Cst Analysis PERT Unit Cst Estimates Frmulae fr Cst Estimating The Nrmal Distributin Curve Z-Value Table The Prbability f Prject Cmpletin within Budget Estimating Prject Unit Cst by Using the Standard Deviatin Estimating the Prject Unit Cst at a Required Prbability The Prbability f Cmpleting the Prject at a Required Cst FN108 REVISION 000 PAGE 7 OF 11
8 PERT vs Standard Deviatin & Z-Values Adjustments t Estimates Based n Previus Prjects Adjustments fr Time Review: Future Value f Mney Review: Present Value f Mney Equivalent Annual Interest Rate Index t Adjust fr Time Equivalent Cmpund Interest Lcatin Index fr Cnstructin Adjustments fr Lcatin Adjustments fr Size Cmbined Adjustments Ecnmic Price Adjustment Estimating Duratins based n the Learning Curve Effect Estimating Csts based n the Learning Curve Effect Unit-Cst Adjustments Learning Curves Budget Estimating Prcess Estimating by design phase Prgramming budget estimates Schematic design budget estimates Design develpment budget estimates Estimating pre-cnstructin services Request fr prpsal Develpment f pre-cnstructin services estimate Pre-cnstructin services cntract Budget cntrl lg Bid Cntract Estimating Prcess Pre-estimate activities Estimating prcess Slicitatin f lump-sum bids Order-f-Magnitude estimates Wrk Breakdwn Structure Estimating team Scheduling the estimating wrk Subcntractrs and majr suppliers Estimating frms FN108 REVISION 000 PAGE 8 OF 11
9 Accuracy and errr preventin Pricing self-perfrmed wrk Recap sheet Materials Labur Applying pricing factrs Summary recap Subcntractr wrk Prject summary schedule Alternative techniques Elements f the general cnditins estimate Final dcument review Cmpleting the bid summary Final mark-ups Sales tax Validating the estimate Estimating subcntractr wrk Estimating General Cnditins Cmpleting the estimate Unit Price Estimates Unit price bid frms Direct cst estimatin Materials Labur Indirect labur Subcntractrs Recap summary sheet Direct-t-indirect cst factr Mark-up determinatin Variatin-in-quantity cntract prvisin Risk analysis Bid finalisatin Negtiated Cntract Estimating Guaranteed Maximum Price Estimates Cntract prcurement prcess Dcuments Strategies FN108 REVISION 000 PAGE 9 OF 11
10 Estimating prcess Cntingencies Fee determinatin fr negtiated cntracts Reimbursable versus Nn-reimbursable csts Hme ffice verhead Risk evaluatin Fee structure Cst savings split Strategies fr respnding t the Request fr Prpsal Dcuments t be included with the Request fr Prpsal General Cntractr interview and selectin prcess Negtiated subcntracts Cst prpsals fr negtiated cntracts Cntract Types and Cmpensatin Arrangements Risk distributin in cntracting Prject risk prfiles Cntract types accrding t risk distributin Fixed Price Cntracts Firm Fixed Price Fixed Price with Ecnmic Adjustment Incentive Cntracts Fixed Price Incentive Cst Plus Incentive Cst Reimbursement Cst Plus Award Fee Cst Plus Fixed Fee Cst-Plus Cntracts Time-and-Materials Narrw Scpe Cst Estimating Techniques Pwer-sizing techniques (Capacity Ratis) Factr estimates Cst estimating relatinships (CER) Design-t-cst-estimates Target cst estimates Adjusting fr Prject Type and Quality Level Features Determining the Quality Level (Grade) f a Structure Adjusting fr Quality Level by Using a Csting Publicatin FN108 REVISION 000 PAGE 10 OF 11
11 Ecnmic Cnstraints Parametric Cst Estimating Curse Certificate: Internatinal Center fr Training & Develpment (ICTD) will award an internatinally recgnized certificate(s) fr each delegate n cmpletin f training. Curse Methdlgy: A variety f methdlgies will be used during the curse that includes: (30%) Based n Case Studies (30%) Techniques (30%) Rle Play (10%) Cncepts Pre-test and Pst-test Variety f Learning Methds Lectures Case Studies and Self Questinaires Grup Wrk Discussin Presentatin Curse Fees: T be advised as per the curse lcatin. This rate includes participant s manual, and-outs, buffet lunch, cffee/tea n arrival, mrning & afternn f each day. Curse Timings: Daily Curse Timings: 08:00-08:20 Mrning Cffee / Tea 08:20-10:00 First Sessin 10:00-10:20 Cffee / Tea / Snacks 10:20-12:20 Secnd Sessin 12:20-13:30 Lunch Break & Prayer Break 13:30-15:00 Last Sessin FN108 REVISION 000 PAGE 11 OF 11
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