Financial analysis in the project environment context

To a great extent, project management boils down to managing project finances. It is important that a person responsible for overall project performance not only understand and properly interpret financial figures, but also be an expert in using techniques for financial management.

In today's world of increasing competition and focus on corporate earnings, project managers are held accountable not just for achieving technical and schedule goals, but also for meeting profitability and other financial goals. This course explores the financial metrics that are commonly used and examines the not-so-obvious financial impact of typical operating decisions and actions. Building on competencies developed in the core management curriculum, you'll examine the inner mechanics of how finance and accounting can impact your project.

You'll 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. You'll see how finance often drives organizational decisions and evaluations of project performance. You'll also learn hot operating decisions regarding pricing, terms and conditions, and asset management directly and significantly affect the financial health of your organization.

Course Topics

1. Fundamentals of Finance
   1. Financial accounting concepts
   2. Generally accepted accounting principles
   3. Reading and understanding financial statements
   4. financial analysis
   5. Managerial accounting
   6. Cost vs. revenue
   7. Profitability measures
      • ROS
      • ROA/EVA
      • ROE
   8. Time value of money
   9. Discounted cash flows
   10. Direct vs. indirect costs
   11. Fixed vs. variable vs. semivariable costs
   12. Break-even analysis
2. Contract Profitability - Pricing
   1. Pricing strategy and tactics
   2. Profit planning
   3. Cost estimating
   4. Cost-based pricing
   5. Market-based pricing
   6. Value-based pricing
   7. Pricing tactics
      • Customers
      • Costs
      • Competitors
   8. Profit objective
      • Market structure
      • Follow-on business
      • Risk
   9. Liquidity ratios
   10. Z score
3. Asset Management - Cash is King
   1. Cash
   2. Timing of cash flows
   3. Accounts receivable
   4. Inventory
   5. Equipment
   6. Revenue recognition
   7. Financing arrangements
4. Terms and Conditions (Ts And Cs) - Best Practices
   1. Value, cost and risk
   2. Asset-friendly Ts and Cs
   3. Unfavorable Ts and Cs
   4. Metrics to evaluate
5. Cost Estimating - What Works Best
   1. Cost estimating methods
   2. Planning and scheduling
   3. Making sense of historical data
   4. Experience curves
   5. Relationship between cost estimating and pricing

Duration: 3 days

“PMBOK”- is registered mark of Project Management Institute, Inc.