StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Project Cost Management - Assignment Example

Cite this document
Summary
This assignment "Project Cost Management" analyses key considerations for effective project cost management and control. Cost management and control require a very keen eye for detail and a sharp vigil on cost expenditures and the work that is getting done…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.8% of users find it useful
Project Cost Management
Read Text Preview

Extract of sample "Project Cost Management"

Cost control in a project is significant in project management because it enables a project to be delivered within a cost expectation as laid down by the definition of a project. Like other forms of control process, cost control is not just about the collection and measurement of how much cost one has spent on a project and deciding from the budget’s overview that what is available can complete the project. Hereby, cost control comprises the measuring, comparing of a baseline, and taking necessary action. Taking the necessary action ensures retaining the control of project cost although there is no specific formula on the action to be taken. To ensure that one takes the right action, the cost expenditure in a project has to be measured consistently and accurately. The certainty of cost can be attained if all project activities are completed properly. There are a number of factors that can directly have an impact on a project’s final cost compared to the original budget plan on cost.

Project changes and involves unforeseen events, scope, execution method, and levels of specification. There is also a schedule whereby the sooner the completion of a project, the sooner a project does not incur costs. The foreseen events are another factor which means that although the original plan on cost where contingencies and risks are concerned, events can take place as foreseen although with a different impact on the affected cost elements.

Control project schedule

The control schedule enables a person to understand the variance nature and its cause, capturing of the current schedule, determining the variance from the baseline of the schedule, and responding by taking relevant measures. The control schedule helps to monitor and control a group by influencing what changes to be made before a project is affected. The control schedule keeps the expectations of a managing stakeholder through advice on the type of work, how it should be carried out,  which members to carry it out, and the duration of time it will take. The control schedule gives advice on when a project can be reviewed and when the authorized product to be complete.

 The control schedule comprises of four inputs;

Schedule baseline comprises the currently approved version of a project schedule and can be used to make a comparison of the planned progress and the actual progress.

A schedule management plan defines how a control schedule can be changed and managed. It articulates the variances of schedule performance thus defining the circumstances when schedule reserve can be used.

The project schedule is a major and obvious input to control the schedule since it consists of a daily schedule used to monitor and keep track of project work thus giving resources against results being managed as well as control.

Work performance information provides information on the performance of work, tasks that have started, those that have been carried out, and those that are in progress. It offers valuable information against schedule comparisons to be made, spots trends, and reacts where necessary.

Control project scope

The control project scope monitors the status of a project to find out if deliverables meet expected requirements and also manages changes in the baseline of project scope. Hereby, the control scope avoids requests of scope change from overwhelming a project thus ensuring that proper handling. If the control scope creeps, the project can lose control resulting in unofficial changes being made thus causing the project to lag behind schedule.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“PM to rescue a project in trouble Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
PM to rescue a project in trouble Assignment Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/management/1634167-pm-to-rescue-a-project-in-trouble
(PM to Rescue a Project in Trouble Assignment Example | Topics and Well Written Essays - 1000 Words)
PM to Rescue a Project in Trouble Assignment Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/management/1634167-pm-to-rescue-a-project-in-trouble.
“PM to Rescue a Project in Trouble Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1634167-pm-to-rescue-a-project-in-trouble.
  • Cited: 0 times

CHECK THESE SAMPLES OF Project Cost Management

The Fundamental Metrics Measuring Efficiency of Implementing IT Projects

Poor management of IT projects remains the highest cause of project failures within the industry.... Proper management begins with development of proper plans during the initial project stages.... cost, time and scope remain the fundamental metrics measuring efficiency of implementing IT projects.... cost performance index and schedule performance index remain the major ratios utilized in measurement of cost and time, in IT projects, respectively....
11 Pages (2750 words) Research Paper

Major Project Management Techniques

he basic aim of this section is to estimate the project cost for the overall project activities.... I have got time to construct this… In this report I will demonstrate the implementation of different project management techniques.... MS Project is project management tool for different project management activities.... I have estimated the cost $ 25100.... his house is selling for $230,000 and the land costs $30,000, then the construction cost is around $200,000....
10 Pages (2500 words) Essay

A Guide to the Project Management Body of Knowledge

Project Cost Management: This knowledge helps in keeping a project within its defined budget.... The following paper under the title 'A Guide to the Project management Body of Knowledge' gives detailed information about PMBOK which presents a collection of nine knowledge areas that are widely accepted as the best practice in the management discipline.... hellip; Project Integration management includes the activities and processes required to establish, describe, unify and coordinate the project and process management activities within the Project management group....
1 Pages (250 words) Essay

The mutual effect between project quality management and project cost management

The project is about the mutual effect between project quality and Project Cost Management.... This paper is going to write the overall plan for the… The project is about the mutual effect between project quality management and Project Cost Management.... The number Project Management The Mutual Effect Between Project Quality Management And Project Cost Management IntroductionA project plan is like the blueprint for the project team members as it acts as a directive to the entire completion of the project....
1 Pages (250 words) Essay

The mutual effect between quality and cost management

This only reflects the fact that project do cost money even more reason as to why project managers ought to understand Project Cost Management.... However, if a good Project Cost Management technique is to be applied, then cost overruns throughout the project can be avoided.... roject cost management (PCM) often sees to it that the project team in place completes a project within an approved budget.... Project management is said to be a discipline that encompasses planning, organizing and management of resources that in turn results in the successful completion of any given project....
8 Pages (2000 words) Essay

PRINCE 2 and PMBOK Methodology in Project Management

10 Pages (2500 words) Assignment

Efficiency of Different Project Methods

It focuses on the Prince2 project management methodology and the PMBOK knowledge areas and how they add value to the project.... It also shows the benefit of using the Prince 2 project management methodology.... Prince2 Project management MethodologyPrince2 is a method used for proper management of projects which is broadly used by the UK.... Prince2 was a management methodology that was formed by the Central Computer and Telecommunications Agency in 1989....
8 Pages (2000 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us