Introduction:
In many major sectors, large capital-intensive initiatives necessitate hefty – and frequently dangerous – investments in the purchase, exploration, and subsequent operation and maintenance of new organizational assets.
Making crucial choices during the exploratory stage of a new development or the expansion of an existing field is the first step in deciding whether or not to invest in new capital projects. The decision to develop or abandon the well will be determined by the company using the decision-making techniques designed to analyze project risk under uncertain conditions.
Determining the expected returns to the organization under various scenarios of uncertainty over the anticipated project’s productive life with the greatest degree of accuracy requires the systematic and thorough evaluation of potential investments as well as the development of detailed cash-flow analyses.
This calls for the creation of reliable, accurate, and meticulously planned cash-flow projections that take into account both the initial capital costs associated with the asset’s acquisition as well as the ongoing operating costs associated with the asset’s successful operation and maintenance throughout its anticipated useful life.
Around the world, an alarming number of large capital projects fall short of or exceed their budgetary projections, failing to achieve the organization’s financial and strategic goals, which was the very reason they were started in the first place. This frequently results in significant increases in capital and operational expenditures as well as significant financial losses for the organization. This is typically the unavoidable result of failing to use current project decision-making, appraisal, financial planning, capital management, and cash flow analysis tools and methodologies when thinking about investing in new capital projects.
OBJECTIVES
At the end of this online training course, you will learn to:
- Understand how to manage organization’s investments in large capital-intensive projects
- Identify how to make and understand financial decisions and be able to present these back to the stakeholder community
- Identify how to manage the cash flow of projects and manage and appraise the financial risk mitigation strategies
- Understand proper cash-flow and sensitivity analyses to forecast and control potential future conditions
- Define and manage project success factors and maximize the return on the capital invested in projects
- Understand how to define financial strategies and incorporate these into project risk mitigation strategies
ORGANISATIONAL BENEFITS
Application of sound project appraisal and quantification techniques will enable the organization to:
- Forecast and control potential future conditions that might jeopardize the chances of project success
- Maximizing the organisation’s return on capital invested in projects
- Understand how to forecast the future based on existing information
PERSONAL BENEFITS
In attending this online training course, delegates can expect to gain the following benefits:
- Enhance their understanding of the time value of money, as well as learn how to use the basic tools of financial engineering such as Net Present Value, Internal Rate of Return, and Annual Worth calculations
- Learn how to evaluate and compare various alternative solutions over differing time horizons
- Detailed explanations of the tools and techniques to determine and continuously monitor project feasibility, will enable participants to select projects with the best capital investment potential
- Learn how to identify, plan, structure and manage risks to the overall delivery of projects – a powerful forecasting and control element leading to project success
WHO SHOULD ATTEND?
This Project Analysis online training course is designed for programme and project management professionals,
Project leaders,
Project engineers,
Cost engineers,
and other senior project control and business services professionals.
Who are responsible for or involved in evaluating projects and managing cash flow throughout the duration of project delivery.
Course Outline
DAY 1
Fundamentals of Decision AnalysisÂ
- What is project management decision analysis?
- The purpose of the project business case
- The need for systematic risk management for decision-making
- Risk and uncertainty on projects
- Option analysis
- Identifying key decision-making factors
Measures of Project Profitability
- Fundamental tools of engineering economics
- Time value of money
- Appraisal methods –Â Discounted Cash Flow Projections
- Time equivalence
DAY 2
Cash-Flow Modelling and Project Decision AnalysisÂ
- Financial Modelling and Project Evaluation
- Internal Rate of Return computations (IRR)
- Determining the Internal Rate of Return (IRR)
- The risk of not understanding IRR
Analyzing Project Specifics
- Understanding the project context to assist in decision-making
- Determine stakeholders and their level of influence
- Capture requirements
- Determine scope of work
DAY 3
The Cost of CapitalÂ
- Capital & Operating Expenditures (CAPEX / OPEX)
- Estimating the cost of capital for a project
- Benefit-Cost Ratio (BCR)
- Dis-benefits
Risk Modelling in PracticeÂ
- Identify Risks
- Forecasting risk impacts & probabilities
- Opportunity costs, sunk costs & salvage value of a project
- Determining the Risk Priorities
- The need for company cash flow
DAY 4
Decision Analysis: Expected Value ConceptÂ
- Basic Probability Concepts
- Fundamental probability concepts
- Mutually & non-mutually exclusive, independent events
- Quantitative Project Risk Analysis
- Semi-quantitative bow-tie process
- Detailed risk quantification and prioritisation
- Expected monetary value
- Scenario planning
- Sensitivity Analysis Tools
- Simulation process
- Tornado diagram
- Defining the variables – PERT
DAY 5
Decision Trees, EMV, Risk Responses and ROIÂ
- Decision Tree Analysis
- Developing decision trees
- Solving decision trees
- Risk Responses
- Developing risk responses
- Evaluating response relevance
- ROI Analysis
- Understanding ROI
- Identifying ROI
- Evaluating and presenting your project options
Method of Instruction:
 Online
Course Duration:
5Days
Type of Certificate Issued:
Â
On a successful completion of this training, participants will be issued
Â
Certificate in Project Analysis: Tools & Techniques for Managing Risk & Uncertainty
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Participants can choose to have their certificate in any of the three options below:
- Digital Certificate(Downloadable PDF)
- Physical Certificate with security marking shipped to your location with a price
Framed Certificate with security markings shipped to your location with a price.
REGISTRATION