Cost and Value Management in Projects

Business and Economics/Project Management
A British parliamentary committee criticizes the spiraling costs of the 2012 London Olympics.
Infrastructure costs had risen by $1.8 billion over the figure quoted.
The U.S. Navy orders Lockheed to stop work on the new coastal–waters warship because of big cost overruns.
In a study of 300 large companies, consulting firm Peat Marwick finds that 65 percent of hardware and/or software development projects were significantly behind schedule, over budget, or failed to deliver value in terms of expected performance.
In a report on the current state of IT project implementation, the Standish Group predicts that out of a total of 300,000 projects that cost over $350 billion, approximately 43 percent will overshoot their initial cost estimates, while 63 percent will fall behind schedule and perform at only two–thirds of their expected capability.
Why do these problems persist? One key answer is the lack of an integrated cost and value management framework.
Cost and Value Management in Projects provides practicing managers with a thorough understanding of the various dimensions of cost and value in projects, along with the factors that impact them, and the managerial approaches that would be most effective for achieving cost efficiency and value optimization. Addressing cost from a strategic—rather than just a tactical—perspective, this book:
Covers the various elements of value management from a project perspective, including planning, engineering, and analysis
Examines project management decision areas that have the potential to enhance value, along with relevant managerial approaches that can be used to optimize that value
Outlines an integrated framework for managing cost and value that can be useful to practicing project managers
Provides prescriptive advice on how to avoid common pitfalls in managing cost and value in projects
Projects have become one of the key means by which organizations add to their
bottom lines. Mastering the project–based skills, including cost and value management, contained in this book will confer an important advantage on every organization in the relentless competition for profits, market share, and technical innovations.

Spis treści:
1 Introduction to the Challenge of Cost and Value Management in Projects.
1.1 Importance of Cost and Value Management in Projects.
1.2 Keys to Effective Project Cost Management.
1.3 Essential Features of Project Value Management.
1.4 Organization of the Book.
2 Project Needs Assessment, Concept Development, and Planning.
2.1 Needs Identification.
2.2 Conceptual Development.
2.3 The Statement of Work.
2.4 Project Planning.
2.5 Project Scope Definition.
2.6 Work Breakdown Structure.
3 Cost Estimation.
3.1 Importance of Cost Estimation.
3.2 Problems of Cost Estimation.
3.3 Sources and Categories of Project Costs.
3.4 Cost Estimating Methods.
3.5 Cost Estimation Process.
3.6 Allowances for Contingencies in Cost Estimation.
3.7 The Use of Learning Curves in Cost Estimation.
4 Project Budgeting.
4.1 Issues in Project Budgeting.
4.2 Developing a Project Budget.
4.3 Approaches to Developing a Project Budget.
4.4 Activity–based Costing.
4.5 Program Budgeting.
4.6 Developing a Project Contingency Budget.
4.7 Issues in Budget Development.
4.8 Crashing the Project: Budget Effects.
Crashing Project Activities—Decision Making.
5 Project Cost Control.
5.1 Overview of the Project Evaluation and Control System.
5.2 Integrating Cost and Time in Monitoring Project Performance: The S–Curve.
5.3 Earned Value Management.
5.4 Earned Value Management Model.
5.5 Fundamentals of Earned Value.
5.6 EVM Terminology.
5.7 Relevancy of Earned Value Managemen t.
5.8 Conducting an Earned Value Analysis.
5.9 Performing an Earned Value Assessment.
5.10 Managing a Portfolio of Projects with Earned Value Management.
5.11 Important Issues in the Effective Use of Earned Value Management.
6 Cash Flow Management.
6.1 The Concept of Cash Flow.
6.2 Cash Flow and the Worth of Projects.
6.3 Payment Arrangements.
7 Financial Management in Projects.
7.1 Financing of Projects Versus Project Finance.
7.2 Principles of Financing Projects.
7.3 Types and Sources of Finance.
7.4 Sources of Finance.
7.5 Cost of Financing.
7.6 Project Finance.
7.7 The Process of Project Financial Management.
8 Value Management.
8.1 Concept of Value.
8.2 Dimensions and Measures of Value.
8.3 Overview of Value Management.
8.4 Value Management Terms.
8.5 Need for Value Management in Projects.
8.6 The Value Management Approach.
8.7 The VM Process.
8.8 Benefits of Value Management.
8.9 Other VM Requirements.
8.10 Value Management Reviews.
8.11 Relationship between Project Value and Risk.
8.12 Value Management as an Aid to Risk Assessment.
8.13 An Example of How VM and Risk Management Interrelate.
9 Change Control and Configuration Management.
9.1 Causes of Changes.
9.2 Influence of Changes.
9.3 Configuration Management.
9.4 Configuration Management Standards.
9.5 The CM Process.
9.6 Control of Changes.
9.7 Change Control Procedure and Configuration Control.
9.8 Responsibility for the Control of Changes.
9.9 Crisis Management.
9.10 An Example of Configuration Management.
10 Supply Chain Management.
10.1 What Is Supply Chain Management?
10.2 The Need to Manage Supply Chains.
10.3 SCM Benefits.
10.4 Critical Areas of SCM.
10.5 SCM Issues in Project Management.
10.6 Value Drivers in Project Supply Chain Management.
10.7 Optimizing Value in Project Supply Chains.
10.8 Project Supply Chai n Process Framework.
10.9 Integrating the Supply Chain.
10.10 Performance Metrics in Project Supply Chain Management.
10.11 Project Supply Chain Metrics and the Supply Chain Operations Reference (SCOR) Model.
10.12 Future Issues in Project Supply Chain Management.
11 Quality Management in Projects.
11.1 Definition of Quality in Projects.
11.2 Elements of Project Quality.
11.3 Total Quality Management (TQM) in Projects.
11.4 Quality Management Methods for a Project Organization.
11.5 Quality Standards for Projects.
12 Integrating Cost and Value in Projects.
12.1 The Project Value Chain.
12.2 Project Value Chain Analysis.
12.3 Sources and Strategies for Integrating Cost and Value in Projects.
12.4 Integrated Value and Risk Management.
12.5 The Project Cost and Value Integration Process.
Index.

Nota biograficzna:

Ray R. Venkataraman, PhD, is Associate Professor of Management at the Sam and Irene Black School of Business, Penn State Erie. He previously taught at DePaul University and Northern Illinois University, where he received the Ideal Industries Award for Excellence in Business Teaching. His scholarly articles have appeared in several top–tier journals.
Jeffrey K. Pinto is Andrew Morrow and Elizabeth Lee Black Chair in Management of Technology in the Black School of Business, Penn State Erie. Professor Pinto is the coauthor, with Peter Morris, of The Wiley Guides to the Management of Projects series, as well as the author or editor of twenty other books and more than 100 scientific papers.

Okładka tylna:

Business and Economics/Project Management
A British parliamentary committee criticizes the spiraling costs of the 2012 London Olympics.
Infrastructure costs had risen by $1.8 billion over the figure quoted.
The U.S. Navy orders Lockheed to stop work on the new coastal–waters warship because of big cost overruns.
In a study o f 300 large companies, consulting firm Peat Marwick finds that 65 percent of hardware and/or software development projects were significantly behind schedule, over budget, or failed to deliver value in terms of expected performance.
In a report on the current state of IT project implementation, the Standish Group predicts that out of a total of 300,000 projects that cost over $350 billion, approximately 43 percent will overshoot their initial cost estimates, while 63 percent will fall behind schedule and perform at only two–thirds of their expected capability.
Why do these problems persist? One key answer is the lack of an integrated cost and value management framework.
Cost and Value Management in Projects provides practicing managers with a thorough understanding of the various dimensions of cost and value in projects, along with the factors that impact them, and the managerial approaches that would be most effective for achieving cost efficiency and value optimization. Addressing cost from a strategic—rather than just a tactical—perspective, this book:
Covers the various elements of value management from a project perspective, including planning, engineering, and analysis
Examines project management decision areas that have the potential to enhance value, along with relevant managerial approaches that can be used to optimize that value
Outlines an integrated framework for managing cost and value that can be useful to practicing project managers
Provides prescriptive advice on how to avoid common pitfalls in managing cost and value in projects
Projects have become one of the key means by which organizations add to their
bottom lines. Mastering the project–based skills, including cost and value management, contained in this book will confer an important advantage on every organization in the relentless competition for profits, market share, and technical innovations.< br>