Syllabus
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Course Code: OPEN ELECTIVE (I&P) MTOE-207 Course Name: Cost Management of Engineering Projects |
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| MODULE NO / UNIT | COURSE SYLLABUS CONTENTS OF MODULE | NOTES |
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| 1 | Introduction and Overview of the Strategic Cost Management Process Cost concepts in decision-making; relevant cost, Differential cost, Incremental cost and Opportunity cost. Objectives of a Costing System; Inventory valuation; Creation of a Database for operational control; Provision of data for Decision-Making. | |
| 2 | 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. Types and contents. Project execution Project cost control. Bar charts and Network diagram. Project commissioning: mechanical and process | |
| 3 | 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. Standard Costing and Variance Analysis. Pricing strategies: Pareto Analysis. Target costing, Life Cycle Costing. Costing of service sector. Just-in-time approach, Material Requirement Planning, Enterprise Resource Planning, Total Quality Management and Theory of constraints. Activity-Based Cost Management, Bench Marking; Balanced Score Card and Value-Chain Analysis. Budgetary Control; Flexible Budgets; Performance budgets; Zerobased budgets. Measurement of Divisional profitability pricing decisions including transfer pricing. | |
| 4 | Quantitative techniques for cost management, Linear Programming, PERT/CPM, Transportation problems, Assignment problems, Simulation, Learning Curve Theory. | |
