ECON 3056 Course Description

Transcription

1 1 ECON 3056 Course Description TITLE Project Evaluation CODE: - ECON 3056: LEVEL : 3 Semester II Academic year NO. OF CREDITS 3 PRE-REQUISITES: ECON 2000 AND ECON 2001 This course takes students through the rudiments of planning, evaluating, financing and managing projects at the micro and macro levels. It includes practical exercises using key project management software support tools such as MS Excel and MS Projects. Purpose of the Course Strategic plans and ideas become reality through projects. Projects often involve the outlay of financial capital which becomes exposed to varying degrees of risks. Investment decisions are required. Quite often Economists find themselves deeply involved in the areas of project evaluation and management. This course aims to provide students with foundation knowledge of tools and techniques used the field of project evaluation and Project Management. The course will be pragmatic and interactive. Problems and case studies are designed for students, working individually and or in teams to apply project evaluation and management methodology, tools and techniques. Instructor Information Name of instructor(s) GARVIN GILBERT Office address and phone: Faculty of Social Sciences Administration Building address : [email protected] Class Time: Thursday 5-8 pm Communication policy

2 2 Letter to the student Dear Student, Congratulations on making the decision to read this course. The fields of investment analysis and project management are becoming popular career options for graduates of Economics Those who have gone before you have rated this course as one of the most practical and relevant to their career choices. I hope that you also find the same level of fulfillment. While this course will not make you either a financial analyst or a project manager, it will certainly provide you with foundation skills that will enhance your marketability in the world of work. Content Projects and Investment Making Decisions- An introduction Investment Making Decisions- Feasibility Studies;-DCF, NPV, IRR. Project Finance: Major Projects; Micro Finance Project Management Basic Concepts: Cost, Time, Scope and Risk Management tools and techniques. Project Management in organizations-lessons and Best Practice Goals/Aims At the end of this course students will be able to: Conduct a basic feasibility study. Utilise electronic spreadsheet and other tools for financial evaluation of projects. Understand the techniques of project finance. Prepare financing proposals for small scale Projects. Understand core Project Management Methodology and use Project Management Tools and Techniques.

3 3 Topic or Unit Objectives Topic Project Evaluation and Management: Introduction Objectives Students will be able to: Understand the linkages between investment planning and project management. Have knowledge of project management framework. Making Investment Decisions Project Financing Project Management Concepts Project Management in organizations : Lessons and Best Practise Build a simple financial spreadsheet model Calculate key parameters for making investment decisions: DCF NPV, IRR and payback. Prepare a rudimentary feasibility study including market analysis. Understand the requirements for successful financing of both micro and mega projects. Understand different financing techniques Prepare proposal for seeking financing from a financial institution. Assimilate tools and techniques applied in core Project Management areas: Cost; Time; Scope and Risk. Utilize Project Management software tools MS Project and WBS Pro to build and manipulate a Project Schedules and Costing Prepare risk mitigation plan for a project Understand the pitfalls of project management Prepare a project Management plan for implement of a project. Assimilate learning from failed and successful projects. Understand Project Management Maturity Models Understand the use of the Project Management Office as a model for improving Maturity

4 4 Assignment Course work accounts for 25 % of the marks in this course. The course work will comprise three elements- Two individual assignments and a team project as outlined below 1. Assignment 1: Develop in Excel an Investment Decision Making Model (10 marks) 2. Assignment 2 (Team): Preparation of a Business Plan including feasibility analysis, financing plan and project management plan for a new Business venture. (15 Marks) In advance of this assignment students should a. Identify a new business idea they wish to pursue/investigate. b. Identify the person(s) they wish to work with on the Project. Course Assessment The purpose of the assessments is to test students understanding of the material presented in the lectures and in the readings. Assessment will take three forms: Tutorial exercises Individual Project - 10 per cent of grade. Team Project- 15 per cent of grade Final Examination 75 per cent of grade. The final examination will be 2 hrs long. Questions are usually in three parts aimed at testing: o Understanding of key theories and concepts o Application of key concepts o Critical Evaluation of key theories and concepts. Evaluation Students are provided with the opportunity to evaluate this course and its teaching. This is done via a questionnaire administered in class within the last two weeks of the semester.

5 5 Teaching Strategies The course will be taught by means of lectures, discussions and learning by doing-peer to peer learning. There will be a team project (group of 2) as well as an individual assignment. Lectures will be conducted with the use of multimedia aids. In order to bring practical experiences to the class room lectures will be shared with professionals in the field of Project management and Finance. Students will also be given computer lab workshops designed to sharpen their competence in use of key software tools: MS Projects and MS Excel. Resources Essential Texts Project Management Institute (PMI).A Guide to the Project Management Body of Knowledge ;( 4 th edition, 2008 or later) Harvard Business Review. Managing Projects Big and Small The fundamental skills for delivering Projects on Budget and on Time.HBR John Finnerty.Asset-Based Financial Engineering (2 nd Edition) Willey Finance Other Texts Harold Kersner. Project Management: A systems approach to Planning Scheduling and Controlling (8TH Edition) Richard Brearley & Stewart Myers, Corporate Finance, 8 th (or7 th )ed. Chs.2,3,5,6 Journals and Other Readings Harvard Business Review. Project management: The View from 30,000 feet. (HBR Article Collection) Radim Matta and Ronald Ashkenas Why Good Projects fail anyway Harvard Business Review, September Monique Aubry, Brian Hobbs, Denis Thuillier. An historical approach to the study of PMOs. International Journal of Project Management (2008)Online Course Material Students will be provided with online access to key articles and lecture notes.my E- learning Portal.

6 6 Course Calendar** Date Topic Readings 23/1/2014 Introduction : Course Outline and requirements. Overview of Investment Analysis Overview of Project Management Principles. Project Management Institute, (PMI) Project Management Body of Knowledge (PMBOK), Chs. 2-3 Lawrence Cunningham (ed.) The Essays of Warren Buffett ( Value Investing and Intelligent Investing )pp /1/2014 Making Investment Decisions - Conducting Feasibility Studies. Capital Budgeting Decisions 6/2/2014 Calculating DCF NPV; IR, Payback. Computer Lab Workshop. Issue of Project #1 13/2/2014 Project Financing Fundamentals Micro Financing Requirements and Trends Financing Large Projects. Financing Techniques for Projects Richard Brearley & Stewart Myers, Corporate Finance, 8 th (or7 th )ed. Chs.2,3,5,6 Aswath Damodaran, Corporate Finance, Theory and Practice 2 th ed. Chs8, 9, 10, and 11. John Finnerty, Project Financing Chs. 7 MSExcel Online Tutorial John Finnerty, Project Financing, Chs.3,4,6,9 Hatton National Bank: Case Study on Profitability of Micro Finance in Commercial Banks 2005 Matthijs Bouuaert, A Billion to Gain A Study on Global Financial Institutions and Microfinance ING March International Project Finance Association Introduction to Project Finance ( Mimeo) Rachna Khurana ; Financing Infrastructure Projects 20/2/2014 Project Financing II - Case Study Financing Projects in the Energy Sector: Guest Lecture Submission of Project #1. SABIC; Petrochemical Project Financing in the Kingdom of Saudi Arabia. 27/2/2014 Business Plan Fundamentals Business Plan Structure from Plan to Market: Lessons of Experience William Sahlman "How to write a Great Business Plan" Harvard Business Review, July-August /3/2014 Project Management Concepts Introduction to Project Planning. Project Management and the Project Cycle. Project Management 5 process groups and 9 knowledge areas. The organisational arrangements for Projects. Matrix Organisations - Their Pros and Cons. Project management Maturity Model. 13/3/2014 Project Management Practical: Computer Lab Session. Richard Turner- Projects and Project Management Harold Kerzner, PROJECT MANAGEMENT (7 th ed.) Ch.3 (Secs ), PMI, PMBOK, Ch. 4 Project Integration Management On Line Tutorial on MS Projects.

7 7 20/3/2014 Project Management Concepts 2 Tools and techniques for managing Scope. Tools and Techniques for Controlling time. 27/3/2014 Mid Term Quiz 03/4/2014 Project Management Concepts 3 Tools and techniques for managing costs. Tools and techniques for managing risks. 10/4/2014 Project Management Lessons and Best Practice Review and Summary PMI, PMBOK, Chs. 5, and 6, Harold Kerzner, PROJECT MANAGEMENT (7 th ed) Ch. 11 (Secs ); Ch.12, PMI, PMBOK Chaps. 7 and 11. Harold Kerzner, PROJECT MANAGEMENT (7 th ed.) Ch.12, Ch.14 (Secs ),15, 24 GROTT; Report of Commission of Enquire into UDECOTT. Isabella Royer, Why Bad Projects are so hard to kill Harvard Business Review, February 2003 Radim Matta and Ronald Ashkenas Why Good Projects fail anyway Harvard Business Review, September 2003 Monique Aubry, Brian Hobbs, Denis Thuillier. An historical approach to the study of PMOs. International Journal of Project Management (2008)

8 8 Additional Information Students should take careful note of the following University regulations: Examination Regulations for First Degrees, Associate Degrees, Diplomas and Certificates including GPA Regulations General Examination Regulation 19. Any candidate who has been absent from the University for a prolonged period during the teaching of a particular course for any reason other than illness or whose attendance at prescribed lectures, classes, practical classes, tutorials, or clinical instructions has been unsatisfactory or who has failed to submit essays or other exercises set by his/her teachers, may be debarred by the relevant Academic Board, on the recommendation of the relevant Faculty Board, from taking any University examinations. The procedures to be used shall be prescribed in Faculty Regulations. Cheating 97. (i) Cheating shall constitute a major offence under these regulations. (ii) Cheating is any attempt to benefit one s self or another by deceit or fraud. (iii) Plagiarism is a form of cheating (iv) Plagiarism is the unauthorized and/ or unacknowledged use of another person s intellectual effort and creations howsoever recorded, including whether formally published or in manuscript or in typescript or other printed or electronically presented form and includes taking passages, ideas or structures from another work or author without proper and unequivocal attribution of such source(s), using the conventions for attributions or citing used in this University (i) If any candidate is suspected of cheating, or attempting to cheat, the circumstances shall be reported in writing to the Campus Registrar. The Campus Registrar shall refer the matter to the Chairman of the Campus Committee on Examinations. If the Chairman so decides, the Committee shall invite the candidate for an interview and shall conduct an investigation. If the candidate is found guilty of cheating or attempting to cheat, the Committee shall disqualify the candidate from the examination in the course concerned, and may also disqualify him/her from all examinations taken in that examination session; and may also disqualify him/her from all further examinations of the University, for any period of time, and may impose a fine not exceeding Bds$ or J$ or TT$ or US$ (according to campus). If the candidate fails to attend and does not offer a satisfactory excuse prior to the hearing, the Committee may hear the case in the candidate s absence.