(CSC-2518) Strategies for an Effective Cost Management
Authors: Daphne Green
Abstract: Today, many companies fail to sustain effective accountability for cost management within the company and its subsidiaries. Maintenance of accountability includes rationalizing and minimizing cost to benchmark the company’s profitability index. Enabling and ensuring cost control requires monitoring cost drivers to sustain efficiency and structural cost.
Cost management system and cost management structure are two basic parts of the framework for cost management. Producing and providing reliable, relevant, and accurate timely cost information assists management decisions and drives performance management. The information must be available when making decisions. Analogous estimation (top-down estimating), parametric modeling, bottom-up estimating and computerized tools are some of the ways to organize costs.
A well designed cost management system balances the project’s scope and expectations of quality and budget. Costs can be controlled only when activity is monitored. Monitoring cost activities gives insight to short-run and long-run project performance. In the short-run, revenues must exceed costs and the organization must make efficient use of its resources relative to generated revenues. CMS generates cost activities relative to short term objectives and long term strategies. In the long-run, the survival is dependent upon acquiring accurate input from suppliers, selling of products to customers, and distribution. CMS provide accurate product costs, assess product and service life-cycle performance, improve the understanding of processes and activities, control costs, measure performance, and allow pursuit of organizational strategies.
(CSC-2532) Cost Controls Under Siege
Authors: Cody Smith
Abstract: Meant to serve as a beginners guide to cost management, this papers main function is to address the questions: How are we to manage cost in a jobsite environment where key stakeholders are not interested in learning or even care? What are the most effective ways to create that buy in? There are many different layers that a cost controller must impact to change a culture to one that manages and watches cost effectively.
Any new cost controller on a project must start by having the proper buy in to make any changes. Cost management can impact the bottom line in many significant ways if implemented properly. The end goal is to make a job more profitable and to be able to properly report data to upper management for the making of informed decisions.
(CSC-2576) The Early & Late Date Conundrum and Project Reporting
Authors: Imran Z. Wyeen, P.Eng.; Mustansir Raj, P.Eng. CCP
Abstract: Project reporting must present as complete and as real a snapshot of a project as possible. The reality is that typically reported cost and schedule metrics do not reflect that. In fact, they can sometimes paint a picture of the project which is quite the opposite of reality. The paper will explain reasons for this confusing state of affairs. It will also explain how the integrated trended estimate and cost and schedule data can be better leveraged to improve accuracy of the deductive data and forecasts. The paper will also present a way out of this conundrum such that customers, executives and other non-project management professionals can understand the true state of the project that this real-time data paints and look beyond the confusion.
(CSC-2613) Securing Workface Planning Success During Detail Engineering
Authors: Diego S. Henriquez
Abstract: There are several industrial projects continuing to be impacted by late schedules and over-budget results, the vast majority of these issues occur during construction, where productivity has become a major concern. Productivity improvement is key in securing construction results and one or the most important component is workface planning. However, there is a lack of commitment in workface planning throughout the industry, it is overlooked as a big work process monster very difficult to implement. But this is wrong, workface planning is nothing strange to project standards and involves small amount of modifications in the usual and correct project execution plan. It has been ignored or underestimated during engineering phases making difficult to implement and forcing the projects to compromise integrity and set-up times at the wrong timeframes.
Workface planning must be used in every Project starting in engineering to secure and increase success rate. Major objectives of workface planning are:
- Correct Project Set-up
- Early Construction involvement
- Construction oriented engineering design
- High packaging integrity in all phases
(CSC-2659) Proactive Trend & Change Management: Avoiding the Iceberg Effect
Authors: Leslie E. McMullan, FAACE
Abstract: Owners, consultants and contractors in a study on trends in project controls have identified change management as an area needing improvement.
Trend and change management are key project critical controls for forecasting, cost management and control of outcomes. The challenge can in be the detection of change, proper classification and the timely evaluation from a cost, risk and schedule perspective throughout the project lifecycle. When changes go undetected or are only reported later, this is referred to as the iceberg affect, providing an incomplete picture.
The project change register items may only be the tip of the iceberg and unseen changes may be taking place on the project, only to surface later with major consequences. This may include secondary impact of change with other ripple effects.
This paper will discuss the key critical controls for successful trend and change management, systems used, the views by the different parties, the sources and types of change, the stumbling blocks to early identification and how to eliminate the iceberg effect.
(CSC-2664) How Valuable is a Control Account, Really?
Authors: Michael Goggin
Abstract: What real purpose does a “control account” serve, in terms of controlling a project? It serves as the glue between various breakdown structures and facilitates the critical working connection between key project stakeholders including project managers, schedulers, cost engineers, procurement and financial controllers. Why is this so important? The finance department, and system of record, is so often overwhelmed by granular levels of detail required by the project delivery team in order to execute and control their capital projects. Through the use of an integrated data model, control accounts can be leveraged to provide project data in critical, yet digestible, categories that are important to stakeholders and their reporting obligations. In this session we’ll discuss not only the criticality of establishing and adhering to the control account methods, but the true value that they add to the finance and project teams along with other stakeholders. These teams can work in harmony, while also being able to work at the level of detail each requires.
(CSC-2687) Change Control Procedure during Design Development of a Mega Transit Project
Authors: Amgad F. Fahmy, PE CCP PSP
Abstract: Changes to any or all of the project triple constraints (cost, schedule and scope) are inevitable. During the design development of a mega transit project, changes could occur for many reasons and can impact not only project progress, but many other critical areas, such as the project budget, project schedule, Environmental Impact Statement (EIS), third party stakeholders, property acquisition schedule, funding complications, etc. This paper intends to examine the major impacts that may occur during the design development of a mega transit project. It discusses the complications of changes in the light of standard project processes directed by the Federal Transit Administration (FTA). It also presents some recommended practices for a change control procedure in order to effectively manage changes and respond to their impacts.