7 - Project Cost Management ensure project is completed...

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Project Cost Management – ensure project is completed within approved budget Effective cost management: observing costs as work proceeds and taking corrective action, creating a plan at start that reflects total costs, working out what cost of resources is Accurate forecasts Monitor and control costs once work is in progress Recognizing how decisions affect costs Estimate Costs Determine Budget Control Costs Cost Management Plan (highly detailed or broad and casual) = enables you to plan, structure, estimate, budget, and control project costs o Level of accuracy o Units of measurement o Organizational procedure links o Control thresholds o Rules of performance measurement o Reporting formats o Process descriptions Estimating Costs Challenges: budget enough for entire project, success depends on managing available funds Cost estimates = projections of monetary resources need to meet objectives o Identify cost alternatives o Defined in terms of currency, staff hours, days o Progressive (rolling wave) process – continue refining as more info is available o Inputs: o Scope baseline WBS – work package provides basis for cost estimation WBS dictionary – resource requirements and dependencies described in detail Project scope statement – helps you keep in mind business objectives and constraints o Project schedule – contains planned dates and info about what resources are needed, lets you estimate resource costs for staff, materials, equipment and location resources Some costs are time-sensitive o Human resource plan – staff requirements, estimate costs based on defined staff roles, staff #s and salaries, consider costs of training, recognition, rewards, meals
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7 - Project Cost Management ensure project is completed...

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