Overview
This course addresses essential financial (not accounting) terminologies and calculations needed for project life cycle financial planning and whole life cycle analyses.
It is a pre-requisite for subsequent courses on Project Portfolio Management such as Basics of Project Portfolio Management, Systems Engineering and Product Breakdown Structures and Decision-Making in Project Portfolio Management
The course is recommended for attending Project Portfolio Management Organisation, Governance, Management and Processes and Requirements to Design and Develop a Long-term Project Portfolio Financial Planning and Budgeting System Why Should an Individual Attend?
It is important to attend this course as it will equip the individual with the required knowledge to
-
Address financial planning and budgeting issues over the project life cycle in an assertive manner
-
Know the key and essential financial terminologies and calculations and how to apply this in practice
-
Conduct and/or lead whole life cycle analyses knowing the pitfalls in respect of mixing net cash flows in constant and current money terms
-
Proceed to subsequent courses such as decision-making in the project portfolio management domain and how to approach the design and development of a long-term project portfolio financial planning and budgeting system
Outcomes
On completion of this course, the delegate will be able to
-
Correctly calculate basic financial formulas used in project and whole life cycle planning and budgeting
-
Know how to use the stages of a project life cycle to determine all built environment professional costs and fees as well as cost of works per stage, per month and per financial year
-
Differentiate between project life cycle financial planning in respect of constant or current money terms and to choose the most appropriate financial method for calculations
-
Differentiate between whole life cycle analyses also in respect of constant or current money terms and to choose the most appropriate financial method in respect of determining annual net cash flows
Program Outline
-
Introduction how this course relates to project portfolio management in general as well as to other courses in this series of project portfolio management
-
Covering essential financial knowledge on inflation, constant vs current money terms, real vs nominal rates, the Fisher formula showing the exact relationship between real and nominal rates, how to develop a future net cash flow per annum in either constant or current money terms, what is a Net Present Value (NPV)
-
Discount rate, what discount rate (real or nominal) should be used, how to determine a discount rate e.g. weighted cost of capital, behavior of the NPV given various discount rates,
-
What is the Internal Rate of Return (IRR), is it a nominal or real IRR?
-
When to conduct a NPV or an IRR? What are the general rules for each?
-
Basic financial calculations using a variety of formula given the known parameters
-
Introduction to whole life cycle analysis, life cycle cost elements
-
Project life cycle as used in the South African Built Environment, what is meant by the Cost of Works?, what is professional normal and additional services?, what is the % fee for normal services?, proportioning of % fee for normal services into percentages for each stage of the project life cycle, multi-disciplinary % fee estimates
-
Whole life cycle analysis basic calculations, a real analysis vs nominal analysis of both NPV and IRR analyses, example of life cycle analysis
Who Should Attend?
-
Town planners, architects and quantity surveyors
-
Engineers, engineering technologists and engineering technicians
-
Project managers especially working in a multi-disciplinary environment and across corporate functions (private and public sectors)
-
Programme managers
-
Programme or project management unit managers
-
Executives, Senior Management and Middle Management in order to fully understand the impact of financial planning and budgeting in the project, programme and portfolio management in a multi-disciplinary environment
-
Information technology developers and programmers
|
