|PM141||17 - 21 Dec 2018||Kuala Lumpur - Malaysia||5,800|
|PM141||15 - 19 Jul 2019||London - UK||5,950|
|PM141||16 - 20 Dec 2019||Kuala Lumpur - Malaysia||5,950|
*All fees are exclusive of VAT
Why Choose this Training Course?
Capital investment decisions are made with a lot of uncertainty. To mitigate the risk of project failure, managers need to understand its exposure and implement appropriate management strategies.
This highly interactive and practical training course is designed to help businesses conduct a systematic and comprehensive evaluation of potential investment opportunities, assess their probability of success and drive the decisions to develop or abandon them. This involves development of sound, realistic, and carefully structured cash flow projections, thorough examination of the underlying assumptions and thoughtful consideration of potential future scenarios. Competent application of project analysis tools helps estimate expected returns, evaluate risk exposure and select appropriate risk mitigation strategies. This should result in improved decision making and increased effectiveness of investments.
This training course will highlight:
- The importance of thorough project definition and analysis
- The advantages, disadvantages and practical applications of various profitability models
- Core financial analysis principles and modern concepts of risk management
- Tools and techniques for making decisions under risk and uncertainty
- Application of decision trees, scenario and sensitivity analysis in risk mitigation and investment decisions
What are the Goals?
By the end of this training course, participants will be able to:
- Make or recommend investment decisions and compellingly present them to the stakeholders
- Appraise project risk, identify and manage risk mitigation strategies
- Apply robust cash-flow, scenario and sensitivity analysis techniques to evaluate potential future conditions and select effective investment strategies
- Define and manage project success factors and maximize the return on invested capital
- Critically evaluate investment decisions and financial risk mitigation strategies
Who is this Training Course for?
This PetroKnowledge training course is suitable to a wide range of professionals but will greatly benefit:
- Program project professionals
- Project leaders
- Project engineers
- Cost engineers
- Project advisors
- And other project and business services professionals who are responsible for or involved in evaluating projects and managing cash flow on projects
How will this Training Course be Presented?
Delegates will develop advanced cash flow analysis skills through formal and interactive learning methods. This PetroKnowledge training course includes individual exercises, team projects, practical case studies and group discussions that will immediately apply and bring to life the skills acquired throughout the course.
The training course does not assume prior knowledge of the topics covered in the course. New concepts and tools are introduced gradually and carefully built on to enable delegates to progress to the advanced concepts.
Day One: Fundamentals of Decision Analysis
- What is project decision analysis?
- Selecting projects to meet organizational goals
- Defining projects, identifying key decision-making factors
- Risk and uncertainty in projects
- Fundamental tools of engineering economics
- Time value of money, compounding, discounting, annuity
- Appraisal methods (payback, Discounted Cash Flow, Net Present Value (NPV), Equivalent Annual Value (EAV)
- Financial analysis using Microsoft Excel
Day Two: Rate of Return and the Cost of Capital
- Rate of return computations (IRR)
- Advantages and disadvantages of profitability models
- Estimating the cost of capital for a project
- Benefit-Cost Ratio (BCR)
- Comparing mutually exclusive projects with equal lives; comparing projects with unequal lives
- Using NPV, IRR, BCR, EAV in project selection
- Comparing mutually exclusive projects using incremental benefit-cost ratios
Day Three: Cash-Flow Modelling and Project Decision Analysis
- Project decisions and total cost of ownership
- Financial modelling and project evaluation: Capital Expenditures (CAPEX), Operating Expenditures (OPEX), Working Capital requirements, Incremental costs and benefits, Terminal cash flows
- Preparing cash flow projections (cash flows vs accounting profits, inflation, opportunity costs, overheads and synergies, sunk costs, depreciation, taxation, interest, insurance, etc)
- Developing cash flow models and testing assumptions
- Business case content
Day Four: Decision Analysis - Expected Value Concept
- Overview of the risk management process
- Risk tolerance and risk prioritization
- Risk quantification and Expected Monetary Value (EMV) concepts
- Decisions under certainty, risk and uncertainty
- Basic Probability Concepts
- Probability applications: Program Evaluation Review Technique (PERT), Monte Carlo Analysis
- Assessing the probability of completing a project within the desired budget
Day Five: Decision Analysis - Decision Trees, Scenario, Sensitivity Analysis and Simulation
- Decision tree analysis
- Scenario analysis
- Sensitivity analysis and tornado diagram
- Integrated practical application
- Presenting decision analysis
Also available as an ILM Endorsed course - Professional Project Analyst
The Registered Education Provider (R.E.P. ID:4349) status with the Project Management Institute (PMI®) enables PetroKnowledge to issue applicable Professional Development Hours/Units (PDHs/PDUs) to participants on this training course, to help you achieve or maintain PMI® professional credentials.
The PMI® Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- Managing Project Control
- Project Execution
- Project Performance Measurement and Management
- Advanced Managing Project Control
- Project Quality Management Workshop
- Developing Project Strategy in the Oil & Gas Industry
Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition, Project Management Institute, Inc. 2013