Table of Contents

Preface xi

Acknowledgments xv

Chapter 1 Project Management and Accounting 1

Mission, Objectives, Strategy 2

Project Planning 6

Project Execution and Control 11

Notes 21

Chapter 2 Finance, Strategy, and Strategic Project Management 23

DuPont Method 24

Note 44

Chapter 3 Accounting, Finance, and Project Management 45

Project Team and Financial Success 46

Calculating Return on Investment 53

STO Solution Model 59

Implementing Strategy throughout the Company 61

Conclusion 68

Notes 69

Chapter 4 Cost 71

Definition and Purpose of Cost 73

Cost Classifications 74

Cost Decisions 80

Cost of Quality 83

Cost and Industry 85

Manufacturing Industry 89

Conclusion 90

Note 91

Chapter 5 Project Financing 93

Debt Financing 93

Corporate Bonds 95

Equity 97

Income Tax Effect 99

Cost Implications of the Funding Methodology 100

Conclusion 112

Chapter 6 Project Revenue and Cash Flows 115

Role of the Financial Manager 115

How to Calculate the Statement of Cash Flows for a Company 119

Free Cash Flows 127

Methods for Calculating a Project's Viability 128

Conclusion 137

Notes 139

Chapter 7 Creating the Project Budget 141

Introduction 141

Case Study: Pontrelli Recycling, Inc. 142

Planning for the Future 147

Creating a Project Budget 157

Review Project Financials 161

Project Cash Flow 162

Conclusion 168

Note 169

Chapter 8 Risk Assessment 171

Risk to Your Reputation 175

Competency 176

Integrity and Honesty 177

Organizational Structure 178

Human Resources 179

Reports on Financial Statements 180

Project Specific Risk 197

Engagement Acceptance 199

Conclusion 200

About the Web Site 201

Index 203

About the Author

KEVIN R. CALLAHAN, MBA, PMP, is the founder and Chief Bulldog at The COO's Bulldog, where he specializes in helping small companies find and fix problems in their operations and entrepreneurs build their back offices. GARY S. STETZ, MBA, CPA, CFE, CFF, ABV, is the cofounder and partner of Stetz, Belgiovine, and Manwarren (SBM). Mr. Stetz is also a director and cofounder of Allegiance Community Bank. LYNNE M. BROOKS, PMP, is an Education Manager in the Education and Publications Group at the College of American Pathologists where she applies Project Management in developing Continuing Medical Education for physicians.