Cost Management Plan - PROJECT COST MANAGEMENT PLAN...

  • Walden University
  • MSPM 6102
  • Notes
  • Flacour
  • 7
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PROJECTCOSTMANAGEMENTPLANTEMPLATEThis Project Cost Management Template is free for you to copy and use on your projectand within your organization. We hope that you find this template useful andwelcome your comments. Public distribution of this document is only permittedfrom the Project Management Docs official website at:www.ProjectManagementDocs.comCOSTMANAGEMENTPLAN<PROJECTNAME>COMPANYNAMESTREETADDRESSCITY, STATEZIPCODEDATE
Cost Management Plan TemplateTABLEOFCONTENTSIntroduction......................................................................................................................................2Cost Management Approach............................................................................................................2Measuring Project Costs..................................................................................................................3Reporting Format.............................................................................................................................4Cost Variance Response Process.....................................................................................................4Cost Change Control Process...........................................................................................................5Project Budget..................................................................................................................................51
Cost Management Plan TemplateINTRODUCTIONThe Cost Management Plan clearly defines how the costs on a project will be managedthroughout the project’s lifecycle.It sets the format and standards by which the project costs aremeasured, reported and controlled.The Cost Management Plan:Identifies who is responsible for managing costsIdentifies who has the authority to approve changes to the project or its budgetHow cost performance is quantitatively measured and reported uponReport formats, frequency and to whom they are presentedThe Project Manager will be responsible for managing and reporting on the project’s costthroughout the duration of the project.During the monthly project status meeting, the ProjectManager will meet with management to present and review the project’s cost performance forthe preceding month.Performance will be measured using earned value.The Project Manageris responsible for accounting for cost deviations and presenting the Project Sponsor with optionsfor getting the project back on budget.The Project Sponsor has the authority to make changes tothe project to bring it back within budget.COSTMANAGEMENTAPPROACHThis section you explain your approach to cost management for your project.We chose to create Cost Accounts at the fourth level of the WBS as an example since manyproject management offices don’t have a Project Management Information System.If you areusing a Project Management Information System then you can, and should, manage costs downto the work package level.For those who don’t have a Project Management Information Systemyou’ll want to determine which level of the WBS you can most effectively manage the project’scosts from.The further down in the WBS you go, the more detailed your cost management is.However, you should balance the granularity at which you want to manage costs against theamount of effort it takes to manage at that level.The more granular your cost management, themore work is necessary to manage it.

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Term
Spring
Professor
Dr.Smith
Tags
Project Management, project manager, project sponsor

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