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    CPM - Cost Model Analysis in Project Management

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    alex
    The document is a lecture on cost modeling for critical path method (CPM) projects. It discusses determining the optimum project duration by finding the duration that results in the lowest total project cost. Total project cost is determined by direct costs, overhead costs, and outage losses if the project duration causes lost profits or penalties from delays. Graphs are used to show how direct costs and total costs change with duration. The optimum duration minimizes total cost and is found where the slope of the total cost curve is zero.

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    CPM - Cost Model Analysis in Project Management

    Uploaded by

    alex
    107 views32 pages
    The document is a lecture on cost modeling for critical path method (CPM) projects. It discusses determining the optimum project duration by finding the duration that results in the lowest total project cost. Total project cost is determined by direct costs, overhead costs, and outage losses if the project duration causes lost profits or penalties from delays. Graphs are used to show how direct costs and total costs change with duration. The optimum duration minimizes total cost and is found where the slope of the total cost curve is zero.

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    CPM - COST MODEL ANALYSIS IN PROJECT MANAGEMENT

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    The document is a lecture on cost modeling for critical path method (CPM) projects. It discusses determining the optimum project duration by finding the duration that results in the lowest total project cost. Total project cost is determined by direct costs, overhead costs, and outage losses if the project duration causes lost profits or penalties from delays. Graphs are used to show how direct costs and total costs change with duration. The optimum duration minimizes total cost and is found where the slope of the total cost curve is zero.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    107 views32 pages

    CPM - Cost Model Analysis in Project Management

    Uploaded by

    alex
    The document is a lecture on cost modeling for critical path method (CPM) projects. It discusses determining the optimum project duration by finding the duration that results in the lowest total project cost. Total project cost is determined by direct costs, overhead costs, and outage losses if the project duration causes lost profits or penalties from delays. Graphs are used to show how direct costs and total costs change with duration. The optimum duration minimizes total cost and is found where the slope of the total cost curve is zero.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 32

    PROJECT MANAGEMENT

    LECTURE
    on

    CPM: COST MODEL


    SATEESH KUMAR PISINI
    [ CEng, MASCE, MISSMGE, MIGS, MIEI, MFIEG ]

    PRINCIPAL LECTURER & PROGRAM LEADER


    DEPARTMENT OF CIVIL ENGINEERING
    FIJI NATIONAL UNIVERSITY

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    The Optimum Duration will be one which gives the Most Economic
    Cost for completing the Project.

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    PROJECT COST

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    Outage Loss

    When there is a loss of profits due to inability to


    meet the demand or some penalty due to delay, a
    corresponding cost increase (known as outage
    loss), must be added to the cost of overheads.

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    SLOPE OF DIRECT COST CURVE

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    Total Project Cost and Optimum Duration

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     THE END 

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