Roger D. H. Warburton
Spring 2010
 This page provides an overview of:
    Why should I take this course? What is expected of me?
Project Costs & Risks


This course introduces the student to the art and science of project cost and risk management. Students learn the process of cost management, including early cost estimation, detailed cost estimation, and as the project proceeds, cost tracking and control using the earned value method. We will study procurement management and the different types of contracts for various scope scenarios. On the topic of project risk, we cover the systematic process of identifying, quantifying, mitigating, and responding to risks. Managing project costs and risks is examined through detailed analysis of case studies.

This course is an introduction to the fundamental concepts, methods, and problems of project cost management, project procurement and contract management, and project risk management. This is accomplished by working through detailed cases, and carefully analyzing project cost and risk data. Detailed analysis skills will be acquired using Microsoft Project and Microsoft Excel, although no prerequisite knowledge is assumed.

First we discuss cost management including an introduction to basic accounting concepts and principles, a review of cost analysis, budgeting, and control, and the importance of cost estimation and tracking. In addition, there will be an in-depth study of Earned Value Management (EVM). Next, we will review procurement, including contract selection, contract management and applicable concepts. Finally, we study risk management concepts and principles, both in general and in relation to project management. 

Microsoft Project and Microsoft Excel will be employed throughout the course to provide hands-on practical skills with the above topics. Mastery of key tools and concepts introduced in this course could give you a significant competitive advantage in the marketplace. 

a)         Additional Text

For students who need a refresher in the topic of fundamentals of project management, and particularly in project networks, one of the following texts is suggested:

K&W Book Cover

MBA Fundamentals: Project Management, 2008.

Vijay Kanabar and Roger D. H. Warburton, Kaplan Publishing, NY, NY.

This textbook is used throughout the Project Management program at Boston University, so you should own it already. 

There are no reading assignments directly taken from this text, but it is a helpful reference. 

Gray & Larson Cover

Project Management: The Managerial Process, 2007

Fourth Edition. Gray, C. F. & Larson, E. W.  Boston: McGraw-Hill.

This textbook is used throughout the Project Management program at Boston University, so you should own it already. 

There are no reading assignments directly taken from this text, but it is a helpful reference. 

 The AD644 Class Schedule is shown below:

     I am still working on this, but most of the topics are correct.




Homework Assignment (Due)


Jan 14

Introduction to Cost Analysis


Jan 21

Cost Estimating & Budgeting, NPV, IRR, Depreciation, Resource Assignments

Charts & Graphs & Excel


Jan 28

Earned Value I

The Roadway Case


Feb 04

Earned Value II

Personal Project Cost Estimate


Feb 11

Monte Carlo

Personal Project EV Analysis


Feb 18

Double Masters Simulation

Personal Project Monte Carlo


Feb 25

Goldratt’s Critical Chain

Simulation Lessons


Mar 03

Mid Term Exam


Mar 10

Spring Break


Mar 17

Introduction to Risk Analysis

 Acceptance, Avoidance, Mitigation, Transfer.

“The Goal” Essay

Personal Project Proposal


Mar 24

Quantitative Risk Analysis

Qualitative & Quantitative

Risk Analysis


Mar 31

Cost & Schedule Risks

Q&Q Risk Problems


Apr 01

Risk Mitigation & Response

Personal Project Cost & Risk Analysis


Apr 08


      Contracting: Types & Risks

Personal Project Risk Mitigation & Response


Apr 15

Budgeting Project Contracts

Teaming Analysis


Apr 22

No Class


Apr 29

Last Class

Final Projects Due


May 06

Final Exam

AD642 OL & AD642 XP
Project Management

Syllabus Overview

Course Overview

This course provides a systematic and thorough introduction to all aspects of project management. Projects are an increasingly important aspect of modern business, so we begin with the relation between projects and the strategic goals of the organization. The course provides the technical, cultural, and interpersonal skills necessary to successfully manage projects from start to finish. The course emphasizes that project management is a professional discipline with its own tools, body of knowledge, and skills. Concepts are reinforced by case studies covering a wide variety of project types and industries.

The course covers both the managerial and technical skills required to plan projects, acquire the necessary resources, and lead project teams to successful completion. Topics include the strategic role of projects in contemporary organizations; organizational cultures, structures and managerial styles; technical management tools (WBS, network diagrams, estimating times and costs,risks, and earned value); dealing with customers, vendors, and subcontractors; leadership; and managing teams.

Course Description from Catalog

An examination of project management concepts, including organizational forms, planning and control techniques, and the role of the project manager. Develops the skills vital to effective management of multidisciplinary tasks through lectures, case studies, and business simulations. (4 cr.)



Lecture No. and





  1. Projects and Project Managers

K&W, Ch. 1-2; PMBOK Ch 1-3.


The PM’s Role

  1. Introduce Yourself
  2. Challenge Everything
  1. Specification Development

K&W, Ch. 3

Party (Personal) Project (PP) Scope


  1. Mission, Goals, Objectives.
    Project Portfolios

Lecture 3

Value of your Degree

  1. Cultural Differences: The Matsushita Case
  1. Work Breakdown Structure (WBS)

K&W, 4;

PMBOK Chapter 5.

WBS for PP


  1. Organizing Projects
    Project Structures 

K&W 6;


Proposal for Final Project

  1. PM v. TD
  1. Project Networks
    (MS Project) 

K&W Ch 5

Network for PP


  1. Cost Estimation & Schedule Estimation

K&W Ch 9 

Preliminary Project

  1. Cassandra Case

Cost Estimate for your PP

  1. Critical Path
    GANTT Charts

Network for PP, MS Project


  1. Management &. Leadership

Resources for your PP

  1. Contingency Funding

The chapter references above include the topic. That is, they give you the place to find the topic. For example, Week 2: WBS. PMBOK Chapter 5 contains more material than just the WBS, it contains a lot about the scope too. 

The following chapters make up the content of the course (which means that any topic from the following chapters can be on the exam):

K&W:                Everything except Chapter 11 (Quality)

PMBOK:           Everything except Chapters 8 (Quality), 9 (HR), 10 (Communications), and 12 (Procurement). 

The complete formal syllabus for AD642 is available here.

The Administrative Sciences Department policies and standards that apply to all courses are available here.