The AACE International Total Cost Management (TCM) Framework® identifies the effective application of professional and technical expertise to plan and control project resources, costs, profitability and risk. Simply stated, TCM is a systematic approach to managing cost throughout the life cycle of capital projects.
This course will describe the concepts of TCM, and illustrate how it addresses the project cost management process for capital projects. It will provide a comprehensive understanding of the Plan-Do-Check-Assess cycle of project cost control; and illustrate the principles of both performance measurement and performance assessment that is critical to effective project control.
This course is intended for those involved in the management and control of large capital projects. A combination of lecture, examples, and interactive sessions will be utilized, providing the attendees with an opportunity to engage in discussions and to participate in an effective learning experience.
Upon completion of this course, participants will be able to:
- Understand the AACE International Total Cost Management (TCM) Framework® philosophy regarding project control
- Learn about the importance of planning for control, and establishing control baselines
- Provide understanding of project budgeting, cost accounting, performance measurement, performance analysis, forecasting, and change management methods
- Learn about risk fund management and project recovery
- Understand the owner's needs to support effective project cost management
Day 1 provides an overview of the TCM Framework®, and the project control process. It describes both the objectives and responsibilities involved in project controls for capital projects. It also focusses on the steps to plan, estimate, schedule, and analyze potential risk in terms of establishing a baseline budget and schedule to support effective project controls. Day 1 concludes with discussing the implementation of the integrated project controls plan.
Overview of Total Cost Management
Project Control Overview
- Roles and Responsibilities
- The TCM Project Control Process (Plan-Do-Check-Assess)
TCM Project Controls - Plan
- Risk Analysis
TCM Project Controls - Do
- Project Control Plan Implementation
Day 2 begins with describing the processes of cost accounting; and the collection of data and information to support project progress and performance measurement. The analysis and assessment of progress and performance will support the development of forecasts against the baseline, and drive required change management. Risk fund management and (when needed) project recovery will also be discussed. Day 2 finishes with discussing owner needs in project cost management, and the presentation of some examples.
TCM Project Controls - Check
- Cost Accounting
- Progress and Performance Measurement
TCM Project Controls – Assess
- Performance Assessment
- Change Management
- Risk Fund Management
- Project Recovery
Owner Needs in Project Cost Management
Applied Examples in TCM Cost Control