Course details

Overview ?

INTRODUCTION

With increasing competition and focus on corporate earnings, project and contract managers are held accountable, not just for achieving technical and scheduling goals, but also for meeting profitability targets and other cost related measures.

This training session explores the financial metrics that are commonly used and also examines the less frequently thought of financial impact of typical operating decisions and actions. Building on your competencies, you will examine the inner mechanics of how finance and accounting can impact your project.

WHO SHOULD ATTEND?

Anyone working within the projects and contracts departments who need to establish a firm understanding of Finance would find this training sesson extremely beneficial. Take advantage of this opportunity to get a firm grasp of the financial management issues that can affect your projects.

PROGRAMME OBJECTIVES

Communicate more effectively with accounting and financial personnel
Read, understand, and analyse accounting and financial data
Expand your work in project scheduling and cost control to encompass additional financial metrics and tools
Minimise project financial risk
Develop and apply tools for comparing project financial returns
Understand how finance often drives organisational decisions and evaluations of project performance.

PROGRAMME SUMMARY

Learn about common financial analysis tools in the project environment that link project management to broader corporate strategic goals. Case studies and project-related exercises give you the opportunity to apply these proven tools and techniques.

Learn how the financial health of your organisation can be significantly affected by operating decisions regarding pricing as well as terms and conditions and asset management.

PROGRAMME OUTLINE

DAY 1 - Fundamentals of Finance

Financial accounting concepts
Generally accepted accounting principles
Reading and understanding financial statements
Financial analysis
Managerial accounting
Business case consideration
Cost vs. revenue
Profitability measures
ROS
ROA/EVA
ROE
IRR
Time value of money
Discounted cash flows
Direct vs. indirect costs
Fixed vs. variable vs. semi-variable costs
Break-even analysis

DAY 2 - Contract Profitability - Pricing

Pricing strategy and tactics
Profit planning
Cost estimating
Cost-based pricing
Market-based pricing
Value-based pricing
Profit objective
- Market structure
- Follow-on business
- Risk
- Z score
Market structure
Follow-on business
Risk
Z score #

DAY 3 - Asset Management - Cash is King

Cash
Timing of cash flows
Accounts receivable
Inventory
Equipment
Revenue recognition
Financing arrangements

DAY 4 - Terms & Conditions (Ts & Cs) - Best Prices

Value, cost, and risk
Asset-friendly Ts and Cs
Unfavourable Ts and Cs
Metrics to evaluate

DAY 5 - Cost Estimating What Works Best

Cost estimating methods
Planning and scheduling
Making sense of historical data
Experience curves
Relationship between cost estimating and pricing

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