Cost Management of Capital Projects

Kurt Heinze

• Publisher: CRC Press
• Year: 2017
• ISBN:
  9781351457668
• Edition: 1
• Topic: Technology & Engineering
• Subtopic: Civil Engineering
• Index: Technology & Engineering

Aiming to bridge the gap between the quantitative viewpoint of management science and the practical, day-to-day needs of project cost management, this text offers coverage of an integrated cost management programme. It presents the use of method study techniques to increase the effectiveness of procedures and improve the productivity of resources, emphasizing a systematic approach to cost control.

CHAPTER 1
INTRODUCTION TO BASICS

The objectives of this chapter are:

1. To discuss basic prerequisites needed to fully understand the content in the remainder of the text.
2. To provide examples for readers who want to become more proficient with the basics of productivity and cost control.

How often have we read a technical text on a professional subject and had to skip over some mathematical treatment of a problem because

• We had forgotten basic mathematics from our school days
• We never did get that far in our education, but we know enough to build on it
• We are reluctant to make the effort to review related texts in order to recall the basics from our rusty memory?

To help the reader fully understand the material in this book and appreciate the techniques of project cost management, the first chapter is devoted to elementary business calculations and a short introduction to management science.

Introduction

Knowledge is a treasure; practice is the key to it. It is never too late to learn.

Old proverbs

“Knowledge is power” goes an old saying, and that is also true in the field of business management. We often neglect to include “project” management in this category. We seem to believe that project managers come up through the ranks or are promoted into the job because they are excellent engineers or accountants.

While pertinent experience is definitely an asset, it is not the only criterion. Modem project management is knowledge intense. It needs both, theoretical and practical knowledge. The use of productivity software does not turn an individual into a qualified project manager.

There have been students aspiring to become managers, believing that they do not need to know the basics of cost management theory because they will have staff to do this work for them. This is shortsighted because they would not be able to communicate knowledgeably with those who report to them, neither would they be able to make informed decisions. Therefore, a basic elementary knowledge of business mathematics is required to appreciate the application of complicated management functions.

1.1 Basic Prerequisites...

Table of contents

• Cover Page
• Half title
• Title Page
• Copyright Page
• Preface
• Contents
• 1 Introduction to Basics
• 2 Project Initiation
• 3 The Cost Plan
• 4 Cost Control
• 5 Cost Reporting
• 6 Productivity
• 7 Problem Solving for Management
• Appendix A Cost Management Terminology
• Appendix B Metric (SI) Units in Cost Management
• References
• Index