Cost Estimating & Progress Monitoring: Task Force Meeting 1

Tuesday 28 Aug 2018, 10:30 → 12:00 Europe/Zurich

Cost Estimating & Progress Monitoring openSE 2.0 Task Force

Basic information

Present: Eliseo Perez-Duenas, Thijs Wijnands, Sylvie Prodon, Anna Scrull, Paula Martinez Urios, Renata Martins

Chair: Eliseo Perez-Duenas

Minutes: Jenni Kaipainen

 

Time: 10:30-12:00

Date: August 28^th

 

Agenda & Minutes

 

Introduction round

Introduction to the Task Forces

1. 1. Purpose and focus

Discussions

1. 1. In CERN the currency changes are very difficult to handle
   2. Discounting is not used in CERN; spending profile of the year is pretty much all they use
      1. This is taught in the course
      2. Three different methods for discounting can be used
         1. Linear discounting
         2. Discounting tables
         3. Zero based budgeting
      3. In the training: you can’t teach finances in one morning, but recommended guidelines are given. Writing down your budgeting method helps in budgeting process
   3. CERN’s budget can be either minus or plus, changes every year
   4. Twice a year a budget update needs to be done
   5. Contingency, BTL and risks should all build the base for the project success. If some of them fail, the final help is from management.
   6. Benefits of the project: Pain, need and desire when project is initialized. If you make a business case, you will compare the direct investment with the long term benefit that continues after the project is finished. With benefits management plan you quantify the value generated. If the project is generating something that you don’t need, decrease the scope.
      1. Should you write a benefits management plan when you start the project?
      2. What will be the operational cost, who will pay for it?
   7. à important to take into account the operational cost of the additional needed services
      1. Operational cost generates something good in addition to being additional expense?
      2. Risk evaluation before and after validation. Value is measured in the difference of these two evaluations.
   8. Definitions & Clarifications
      1. Program management is when you have a group of projects that are best managed together.
      2. Portfolio is about doing the right set of projects and programs.
   9. Separate budget for external collaborators
   10. In CERN we are making payment budgets, not commitment budgets
   11. Use of ATP
   12. Centrally given/ lead budgets that the project engineers and other project people are obliged to follow. Support and templates provided

Next steps

1. Paula: How to calculate uncertainty
2. Thijs: Sending benefits management plan material
3. Gather ideas for the next meeting