Khosrowshahi, F (2001) Project cash flow forecasting: A mathematical approach. In: Akintoye, A (ed.) Proceedings of 17th Annual ARCOM Conference, 5-7 September 2001, Salford, UK.
Abstract
A proactive approach to project cash flow management relies heavily on the use of a forecasting model that is, on the one hand, capable of generating reasonably accurate forecasts and, on the other hand, offers the flexibility which enables the financial manager to challenge the outcome of the forecast in the direction of corporate financial objectives of the organization. The latter was the subject of a paper in the previous ARCOM conference. This paper is concerned with the former: the structure of the project cash flow forecasting model. The paper provides the details of the model, which consists of a mathematical expression, and a database of processed data relating to project expenditure flows of a variety of construction projects. The methodology used for the development of the model is based on the analysis of the shape of the project expenditure profile. The understanding of the shape-geometry of the profile and the identification of the variables that define the profile will in turn help to construct the profile for any given project definition. This undertaking also relies on the use of a mathematical model in order to convert the shape-variables into an expenditure pattern. Therefore, the paper discusses the components of the mathematical model, which consists of three modules each responsible for implementing a number of requirements relating to shape-variables.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | corporate financial management; financial management; mathematical models; project cash flow |
| Index terms: | mathematical model, geometry, cash flow management, forecasting, manager, cash flow, financial management, database, conference, module, methodology, construction project, cash flow forecasting |
| Subjects: | practitioner, research dissemination and communication, mathematical modelling, economic analysis, prediction and forecasting, financial and cost management, production management, architectural elements, financial management, research methods, data management |
| Topics: | Digital Applications, Design Practice, Roles and Professions, Business Strategy, Cost Management, Research Practice, Project Management |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here