OMF354 Syllabus - Cost Management Of Engineering Projects - 2021 Regulation - Open Elective | Anna University

OMF354 Syllabus - Cost Management Of Engineering Projects - 2021 Regulation - Open Elective | Anna University

OMF354	COST MANAGEMENT OF ENGINEERING PROJECTS	L T P C

3003

COURSE OBJECTIVES:

• Summarize the costing concepts and their role in decision making Infer the project management concepts and their various aspects in selection Interpret costing concepts with project execution Develop knowledge of costing techniques in service sector and various budgetary control techniques Illustrate with quantitative techniques in cost management

UNIT I	INTRODUCTION TO COSTING CONCEPTS	9

Objectives of a Costing System; Cost concepts in decision-making; Relevant cost, Differential cost, Incremental cost and Opportunity cost; Creation of a Database for operational control.’

UNIT II	INTRODUCTION TO PROJECT MANAGEMENT	9

Project: meaning, Different types, why to manage, cost overruns centres, various stages of project execution: conception to commissioning. Project execution as conglomeration of technical and nontechnical activities, Detailed Engineering activities, Pre project execution main clearances and documents, Project team: Role of each member, Importance Project site: Data required with significance, Project contracts

UNIT III	PROJECT EXECUTION AND COSTING CONCEPTS	9

Project execution Project cost control, Bar charts and Network diagram, Project commissioning: mechanical and process, Cost Behavior and Profit Planning Marginal Costing; Distinction between Marginal Costing and Absorption Costing; Break-even Analysis, Cost-Volume-Profit Analysis, Various decision-making problems, Pricing strategies: Pareto Analysis, Target costing, Life Cycle Costing

UNIT IV	COSTING OF SERVICE SECTOR AND BUDGETERY CONTROL	9

Just-in-time approach, Material Requirement Planning, Enterprise Resource Planning, Activity Based Cost Management, Bench Marking; Balanced Score Card and Value-Chain Analysis, Budgetary Control: Flexible Budgets; Performance budgets; Zero-based budgets.

UNIT V	QUANTITATIVE TECHNIQUES FOR COST MANAGEMENT	9

Linear Programming, PERT/CPM, Transportation problems, Assignment problems, Learning Curve Theory.

TOTAL: 45 PERIODS

COURSE OUTCOMES: Upon successful completion of the course, students should be able to:

CO1: Understand the costing concepts and their role in decision making.
CO2: Understand the project management concepts and their various aspects in selection.
CO3: Interpret costing concepts with project execution.
CO4: Gain knowledge of costing techniques in service sector and various budgetary control techniques.
CO5: Become familiar with quantitative techniques in cost management.

TEXT BOOKS:

1. John M. Nicholas, Herman Steyn Project Management for Engineering, Business and Technology, Taylor & Francis, 2 August 2020, ISBN: 9781000092561.
2. Albert Lester ,Project Management, Planning and Control, Elsevier/Butterworth- Heinemann, 2007, ISBN: 9780750669566, 075066956X.

REFERENCES:

1. Ashish K. Bhattacharya, Principles & Practices of Cost Accounting A. H. Wheeler publisher, 1991.
2. Charles T. Horngren and George Foster, Advanced Management Accounting, 1988.
3. Charles T. Horngren et al Cost Accounting a Managerial Emphasis, Prentice Hall of India, New Delhi, 2011.
4. Robert S Kaplan Anthony A. Alkinson, Management & Cost Accounting, 2003.
5. Vohra N.D., Quantitative Techniques in Management, Tata McGraw Hill Book Co. Ltd, 2007.