Proprietary and confidential. ©2006 Perot Systems. All rights reserved. All registered trademarks are the property of their respective owners.People. Processes. Technology. Res ults .PMI – Project Cos t ManagementVinay, Yogesh, Manoj, PradeepMeena
Proprietary and confidential. ©2006 Perot Systems. All rights reserved. All registered trademarks are the property of their respective owners.Agenda•Cost Management Knowledge Sharing session–Introductions and Overview5 mins –Project Cost Estimating10 mins–Project Cost Budgeting10 mins–Project Cost Control20 mins–Accounting Standards10 mins•Sample Questions 20 mins•Open Discussions15 mins
Proprietary and confidential. ©2006 Perot Systems. All rights reserved. All registered trademarks are the property of their respective owners.Knowledge Areas and Processes - Recap
Proprietary and confidential. ©2006 Perot Systems. All rights reserved. All registered trademarks are the property of their respective owners.What are the Drivers of Cost Management•Costing is done on the resources required to accomplish a project•Identification and planning of resources required for the project costing are:–People–Equipments–Materials needed to complete the work–Quantity of the needed resources–Schedule when the resources are needed•Applying Expert judgment to evaluate and analyze the resources that the project needs•Value Analysis to find more affordable, less costly methods of accomplishing the same work•The Cost Management plan can establish•Precision Level•Units of Measure•Organizational Procedures Links•Control Thresholds•Earned Value Rules•Reporting formats•Process Description
Proprietary and confidential. ©2006 Perot Systems. All rights reserved. All registered trademarks are the property of their respective owners.Project Cost Management - OverviewProject Cos t Management includes the proces s es involved in planning, es timating, budgeting and controlling cos ts s o that the project can be completed within the approved budget.oCos t Es timating –Developing an approximation of the costs of the resources needed to complete project activitiesoCos t Budgeting– Aggregating the estimated costs of individual activities or work packages to establish a cost baselineoCos t Control– Influencing the Factors that create cost variances and controlling changes to the project budgetThese Processes interact with each other and with the processes of other knowledge areas like Time Management, Procurement Management, Scope Management , Communication Management and Integration Management
Proprietary and confidential. ©2006 Perot Systems. All rights reserved. All registered trademarks are the property of their respective owners.
