Cambridge
Academy
In London
Course Description
Course Duration: Five Training Days
Course Language: Arabic or English
Include:
Scientific material with TAB
Workshops
Reception and farewell at the airport
Daily lunch
Coffee Break
Introduction:
With years of work in the fields of project management, procurement, and computation, there are common threads in methodology and practice in almost every computational situation. Whether it's an industrial process, a manufactured product, a multi-million dollar construction project, or a business service to be evaluated, certain principles, practices, and procedures apply. This document describes those principles, practices, and procedures. It provides a simple, low-cost, step-by-step cost estimation method. It also points out possible pitfalls, problems, errors, and inaccuracies in cost estimates that can make the difference between success and failure. The course is organized to help you get the big picture and dive deeper into each step of the cost estimating process. This is not a highly technical and sophisticated paper on the mathematical and statistical aspects of cost estimation. Rather, this course is a simple, straightforward presentation of basic concepts and the steps required to create management, labor-time, materials-based, and parametric cost estimates. It is designed for all professionals who are cost estimators, price estimators, cost analysts, pricing analysts, or system cost analysts, whether you are a university, small business, large enterprise, or government It is equally useful for people working in institutions. It is a necessary part of the library of any company or organization interested in making lasting profits and getting the most results for the money spent. The principles, practices, and procedures are presented in this course. After reading and applying, you will have a better understanding of the relationship between what a work activity is and the resources required to complete that activity. You can see the important benefits of good estimating. Using a systematic approach to estimate the cost of labor activity or labor performance allows you to assess the value of labor to you as a producer and to your consumers.
Targeted Groups:
Finance Managers
Budget Holders
Project Managers
Professional Engineers
People providing direct support to the above
Course objectives:
After completing this course, participants will be able to
Estimate costs proactively
Practicing cost reduction techniques
Effective cost estimates for projects
Make better use of cost budgets, plans and forecasts
Understanding project evaluation
Course Content
Unit 1: Why Cost Estimating
Estimating in a World of Limited Resources
Increased Productivity as a Solution
Productivity and the Profit Motive
At Stake, the Organization's Reputation
In-Depth Cost Estimating
Possible: A Standardized Basic Estimating Procedure
Unit 2: The Basics of Estimating
Four Kinds of Work Output
Cost Estimating Defined
"Cost" and "Price" Explained
The Estimating Process: Ingredients and Tools Required
The Cost Estimator: The Human Element
The Anatomy of an Estimate
Discussion of Types of Costs
Collecting the Ingredients of the Estimate
Unit 3: Defining The Work
The First Questions to Ask (and Why)
The Estimate Skeleton: The Work Breakdown Structure
The Hierarchical Relationship of a Work Breakdown Structure
Functional Elements
Physical Elements
Treatment of Recurring and Nonrecurring Activities
Work Breakdown Structure Interrationships
Defining the Estimate Ingredients
Building in Cost-Effectiveness
Unit 4: The Tools Required For Estimating
Four Basic Tools
Information to Be Collected Before Starting an Estimate
Methods Used in the Estimating Process
The Technology Improvement Function
Establishing an Estimate Schedule
Needed Estimating Skills
Unit 5: Formulating The Schedule, Estimate, Elements, And Ground Rules
Timing: Key to a Cost-Competitive Output
Delivering or Availability Keyed to Need Dates
Developing a Schedule
Techniques Used in Schedule Planning
Time Phasing of Skill Interactions Within a Multioutput Organization
Treatment of Long Lead-Time Items
Product Development and Production Schedules
Establishing Estimate Elements
Analysis of a Request for Proposal
Work Breakdown Structure Dictionary
Treatment of Other Necessary Ground Rules
Unit 6: Estimating Direct Material Costs and Labor-Hours
Estimate Basic Engineering Material Costs
Estimating Engineering Activities
Manufacturing/Production Engineering
Estimating Manufacturing/Production, Assembly and Construction Activities
Manufacturing Activities
Construction Activities
In-Process Inspection
Computer Software Cost Estimating
Labor Allowances
Estimating Supervision, Direct Management, and Other Direct Charges
The Use of Factors in Estimating
Unit 7: Estimating Labor Rates, Indirect Costs, and Administrative Costs
Labor Rates
Available Labor Rate Information
Indirect Costs
Overhead Costs Examined
General and Administrative Costs
Bid and Proposal Costs and Independent Research and Development Costs