N/A. Yes. Students are expected to review and understand all areas of the course outline.

Transcription

1 Course Outline School: Department: Course Title: Business Business Management Project Estimation and Cost Management Course Code: PMGT 727 Course Hours/Credits: 56 Prerequisites: PMGT 401, PMGT 701 Co-requisites: Eligible for Prior Learning, Assessment and Recognition: Originated by: Yes Isaac Sethian,PMP Creation Date: Winter 2009 Revised by: Farhad Moayeri,PhD, EMBA, PMP Revision Date: Summer 2014 Current Semester: Summer 2015 Approved by: Chairperson/Dean Students are expected to review and understand all areas of the course outline. Retain this course outline for future transfer credit applications. A fee may be charged for additional copies. This course outline is available in alternative formats upon request.

2 Course Description In today s competitive business environment project management skills must include a solid understanding of the Basics of Project Financing and Economic principles. Projects are investments, hence Project Managers need to estimate and evaluate a project s financial viability. The course covers formulating; estimating, evaluating and quantifying economic outcomes of feasible alternative choices to select the best and maximize the project s economic value. Participants are introduced to a comprehensive array of analytical models that are required in analyzing, budgeting and controlling the financial outcome of projects. The key topics covered include time value of money, economic equivalence, probability and statistical concepts in assessing uncertainty, cost estimating techniques, analyzing project risk and contingency budgets, life-cycle costs, after tax cash-flow, profitability and sensitivity analysis. Program Outcomes Successful completion of this and other courses in the program culminates in the achievement of the Vocational Learning Outcomes (program outcomes) set by the Ministry of Training, Colleges and Universities in the Program Standard. The VLOs express the learning a student must reliably demonstrate before graduation. To ensure a meaningful learning experience and to better understand how this course and program prepare graduates for success, students are encouraged to review the Program Standard by visiting For apprenticeship-based programs, visit Course Learning Outcomes The student will reliably demonstrate the ability to: Discuss the foundations and the role of Finance & Economics in Projects. Explain Financial Statements, Money and its Management. Determine Cost Concepts Relevant to Decision Making. Classify the tools for selecting projects and evaluating project alternatives Practice financial and economy decisions on real-world projects. Assess the effects of taxation, risk and uncertainty on project economics. Analyze the concept of monetary growth and discounting. Calculate project capital assets depreciation using four techniques. Apply sensitivity analyses on project options. Examine basic statistical calculations required for decision making Determine the break-even point of a project cash flows. Apply techniques for assessing project risk and contingency reserves. Assess the important elements of a feasibility study. Essential Employability Skills (EES) The student will reliably demonstrate the ability to*: 3. Execute mathematical operations accurately. 4. Apply a systematic approach to solve problems. 5. Use a variety of thinking skills to anticipate and solve problems. 7. Analyze, evaluate, and apply relevant information from a variety of sources. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 2

3 9. Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals. 11. Take responsibility for one's own actions, decisions, and consequences. *There are 11 Essential Employability Skills outcomes as per the Ministry Program Standard. Of these 11 outcomes, the following will be assessed in this course. Global Citizenship and Equity (GC&E) Outcomes Text and other Instructional/Learning Materials Text Book(s): Contemporary Engineering Economics, A Canadian Perspective,3rd Canadian Edition; Chan S. Park, R. Pelot, K. M.Zuo; Published by: Pearson Education Canada, 2012; ISBN A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition, 2013 Project Management Institute, Four Campus Boulevard, Newtown Square, PA USA Evaluation Scheme Quiz 1: Multiple choice questions based on time value of money and economic equivalences Quiz 2: Calculative problems based on effective rate and nominal rate,dpbp,npw,nfw,aew,irr, make or buy decision Quiz 3: Calculative problems based on cost concepts,depreciation,income tax Test 1: A comprehensive test from chapter 1-9, and Class Discussions Reflective Writing Assignment: Students demonstrates their personal learning and development of the course. Quiz 4: Calculative Problems for Developing a Project Cashflow Quiz 5: Calculative Problems for analysis of public projects Term Project: Students work in a group by members of three on the term project. It will be assigned by the instructor after the midterm exam. Quiz 6: A calculative problem considering the impact of inflation on cash flow statements. Quiz 7: A calculative problem considering risk and uncertainty on cash flow Class Activities: Student in groups work on a relevant problem or a question to the lecture provided by the instructor. Test 2: This test focuses on developing a cash flow,impacts of inflation on project selection, cost benefit analysis of public projects, and risk analysis of project selection. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 3

4 Evaluation Name CLO(s) EES GCE Outcome(s) Outcome(s) Weight/100 Quiz 1 1, 2, 7 3, 7 4 Quiz 2 4, Quiz 3 3, 6, Test 1 1, 8 3, 5 20 Reflective Writing Assignment Quiz 4 4, 5, Quiz 5 5 5, 7 4 Term Project Quiz 6 4, Quiz 7 9, Class Activities Test 2 9, 10, 11, 13 4, 5 20 Total 100% If students are unable to write a test they should immediately contact their professor or program Chair for advice. In exceptional and well documented circumstances (e.g. unforeseen family problems, serious illness, or death of a close family member), students may be able to write a make-up test. All submitted work may be reviewed for authenticity and originality utilizing Turnitin. Students who do not wish to have their work submitted to Turnitin must, by the end of the second week of class, communicate this in writing to the instructor and make mutually agreeable alternate arrangements. When writing tests, students must be able to produce official College photo identification or they may be refused the right to take the test or test results will be void. Student Accommodation It is College Policy to provide accommodation based on grounds defined in the Ontario Human Rights Code. Accommodation may include modifications to standard practices. Students with disabilities who require academic accommodations must register with the Centre for Students with Disabilities. Students requiring accommodation based on other human rights grounds should talk with their professors as early as possible. Please see the Student Accommodation Policy. Use of Dictionaries Any dictionary (hard copy or electronic) may be used in regular class work. Program or School Policies Course Policies College Policies THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 4

5 Students should familiarize themselves with all College Policies that cover academic matters and student conduct. All students and employees have the right to study and work in an environment that is free from discrimination and harassment and promotes respect and equity. Centennial policies ensure all incidents of harassment, discrimination, bullying and violence will be addressed and responded to accordingly. Academic honesty is integral to the learning process and a necessary ingredient of academic integrity. Academic dishonesty includes cheating, plagiarism, and impersonation. All of these occur when the work of others is presented by a student as their own and/or without citing sources of information. Breaches of academic honesty may result in a failing grade on the assignment/course, suspension or expulsion from the college. For more information on these and other policies, please visit Students enrolled in a joint or collaborative program are subject to the partner institution's academic policies. PLAR Process This course is eligible for Prior Learning Assessment and Recognition (PLAR). PLAR is a process by which course credit may be granted for past learning acquired through work or other life experiences. The PLAR process involves completing an assessment (portfolio, test, assignment, etc.) that reliably demonstrates achievement of the course learning outcomes. Contact the academic school to obtain information on the PLAR process and the required assessment. This course outline and its associated weekly topical(s) may not be reproduced, in whole or in part, without the prior permission of Centennial College. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 5

6 Topical Outline (subject to change): Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name 1 Project Economic Chapter 1 Discuss economic decisions using financial Decisions Chapter 2 statements,and financial ratios. 2 Time Value of Money Chapter 3 Apply cost of money to find economic Class Activity and Economic equivalence for conventional and 1 Equivalence unconventional cash flows. 3 Understanding Money Chapter 4 Compute nominal and effective interest rates Quiz 1 and Its Management to find equivalent cash flows of projects. Ch. 1,2,3 4 Analysis of Independent Investments Chapter 5 Analyze project cash flows using different project screening methods including present worth analysis and its variations, future worth analysis, annual equivalent worth analysis and internal rate of return criterion. 5 Comparing Mutually Exclusive Alternatives Chapter 6 Compare revenue projects versus service projects. Apply incremental investment analysis for mutual exclusive projects. Figure out how to adjust project time and analysis period. 6 Cost Concepts Chapter 7 Classify different project costs for financial Relevant to Decision statements relevant to decision making. Making Predict behaviour of different classified project costs 7 Depreciation Chapter 8 Determine different book depreciation methods in projects. Apply Canadian tax depreciation method in projects. Class Activity 2 Quiz 2 Ch. 4,5,6 Class Activity 3 Evaluation Date 8 Corporate Income Taxes Developing Project Cash Flows 9 Test 1 Chapter 9 Chapter 10 Chapters 1-9, Lecture Notes, and Class Discussions Explain income tax fundamentals. Calculate net income using given tax rate. Analyze disposal tax effects. Develop cash flow statements of projects. Assessment Invigilating of the test Quiz 3 Ch 7,8,9 Developing Project Cash Flows Evaluate new projects based on developed cash flows Chapter Capital Budgeting Chapter 12 Explain methods of financing. Quiz 4 Test 1 Reflective Writing Assignment THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 6

7 Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name Decisions Compute Cost of Capital of projects. Ch Economic Analysis in Chapter 13 Evaluate projects in the public sector using Class Activity The Public Sector benefit to cost analysis Inflation and Its Chapter 14 Assess effects of inflation on project cash Quiz 5 Impact on Project flows. Ch. 12,13 Cash Flows Evaluate change of present worth, annual equivalent worth, and internal rate of return of projects under inflation. 13 Project Risk And Uncertainty 14 Review Session Test 2 Chapter 15 Chapters 10,12,13,14,15 Apply break even analysis on project cash flows. Assess decisions made on new project using sensitivity analysis Reviewing concepts of cash flow statements, inflation, benefit and cost analysis, and sensitivity analysis Assessment Invigilating of the test Quiz 6 Ch.14 Class Activity 5 Quiz 7 Ch.15 Term Project Test 2 Evaluation Date THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 7