Cost management The budget Planning Controlling O f Is process

An-Najah national university
Civil engineering department
Graduation project (part 1)
Construction project management
Prepared by:
Hibs Alhaj
Hala Mahmoud
Sabreen Hashesh
Safa Qasem
Supervisor:
Eng. Hussein Abu Znt
What is the Project Management?
Project Management is the sum of
all activities such as Planning,
organising, implementing and
controlling a project in order to
meet the client’s expectation from
start to finish within the planned
period, budget and quality.
What is the “Project”?
A temporary endeavor undertaken
to create a unique product or
service
processes are guided through five stages:
initiation
Planning
Executing
Controlling
and closing
Who is the project Manager?
A project manager
goals and objectives
project components
quality control
Case study
Al_Itiman company leads the taxes departments at Nablus_Mall At
Rafidya.
Architectural design was assigned according to the needs of taxes
departments.
the cost of the project is estimated about 800 thousand shekels.
The budgeted cost is about 700 shekels.
In the sense that there is a deficit at around 100 thousand shekels.
Objective of the project
value engineering works to reduce costs, this research
deals with the procedures that reduce the cost of the
project.
The cost reduction enables the manager or the
stakeholders to construct the needed project.
The project assumption
The following assumptions are presented bellow for the project:
1. Value engineering should leads to minimize the budget cost
2. Other action also should lowering the cost of the project such
as ; cost analysis , quantity analysis, and area reduction
Constraints of the project
8
Process of solving our problem
• We are going to solve this problem
using cost management
and the study of value engineering.
Project methodology
The main objective to enlighten the action how to reduce the
budget cost.
There are many methods to reduce the project cost .
 First to repeat the calculation of the project quantities.
 Second to substitute the specifications which called value
engineering.
 Third cost analysis could make reduction to the cost .
 Forth area reduction for not necessary area.
Project methodology
The proposed methodology that should be implied on the research is presented
as follows:
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Scope Management
time Management
Cost Management
Quality Management
Communications Management
Risk Management
Integration Management
Procurement Management
Human resource management
Value engineering (VA)
Value
Engineering
Systematic method
To improve
product
Services
By
using
Examination
of function
Value =
Quality
____
so
Cost
Value can therefore be increased by either improving
the function ( performance , quality ) or reducing the cost
By using VE we have a powerful proven methodology to:
- Solve problems.
- Reduce costs.
- Improve quality.
- Improve performance.
-Maintain intended functions.
Cost
management
Is
process
Planning
Controlling
Of
The budget
Project cost management (PCM)
It is a method which uses technology to measure
cost and productivity through the full life cycle of
enterprise level projects.
In general, the steps of project cost management
can consider as:
• Resource Planning.
• Cost Estimating.
• Cost Budgeting.
• Cost Control.
WHEN WE HAVE PRPBLEM WE HAVE TOW TYPE OF COST:
PREVINISION COST
APPRASIOAL COST(THE BEST TYPE)
Discussion and conclusion
We know that our graduation project have two
parts
Part 1 is project of studying basic and main principle
of project management that means this part is
aproject of information about our case study or
engineering problem that is budget control
(reducing the estimated cost )
part 2 is project of application for all we studied in
part 1
Apply the overall cost management methods and
tools to ensure minimizing the cost as possible.
And Use project management software (like
primavera project planner or Ms-project software)
as a tool- not as a substitute for effective planning
or interpersonal skills.