Cost Management for Computer Sciences and Information Technology Projects - Article Example

Project Cost Management Project Cost Management This paper is about cost management for Computer sciences and Information technology projects. The paper sums up the various ways of ensuring the costs of a project are manageable and discussions are informed by Verzuh (2008). Managing the costs of a project is an activity that needs to be conducted on a regular basis and in all phases of the project. According to Verzuh (2008), setting schedules with milestones, ensuring accuracy in cost and schedule estimation and regularly monitoring and managing the balance between cost, quality and schedule of a project ensures that the project remains to be manageable and cost effective. This paper goes to an extent to even evaluate the effects of project duration on the cost demands of a project. This paper also examines Institute (2013), on how to effectively manage the costs of a project. There needs to be guidelines and plans for managing cost and quality of the project. Planning ensures that cost and quality control measures are emphasized in all phases of the project. Realistic Scheduling Realistic scheduling of duties has a direct relationship with managing the cost of a project. Scheduling ensures that resources are duly utilized and reduces wastages of material and time. Steps of scheduling duties should be carried out with the view of not only ensuring the project is a success, but also to ensure the costs of the project are manageable. Identify Task Relationships When scheduling duties, related tasks need to be carried out in a sequence that ensures less time is spent to achieve the final output. According to Verzuh (2008), where tasks are not related to each other, they can be done subsequently to reduce the time of production. Work package estimation For each set of work to be carried, coming up with a schedule and cost estimates is crucial in ensuring that needed resources are made available in good time, as well as to assess the time a project will take. To manage costs effectively, there needs to be a breakdown of the amount of labor needed to perform various duties, materials needed for the completion of a project, equipments and the fixed expenses required to take the project to completion to (Verzuh, 2008). Calculate work schedule According to Verzuh (2008), having the schedule of work to be carried out ensures that resources are available when needed. The schedule is very important because items that urgently need materials can be given priority over the ones that need materials later in the project. Assign and level resources Time, people, materials and equipments need to be utilized in a manner that will maximize the output. To better do this, project resources need to be assigned where they will have much impact in the overall project. According to Verzuh (2008), doing this ensures that there is stable supply of needed resources at every given time of the project cycle. Areas that can be automated should be marked so as to reduce labor and time needs. Estimating Accurately The duration and costs of a project need to be ascertained beforehand so as to enable planning for a project. According to Verzuh (2008), information systems managers and developers of software fail in this field of estimating project cost and duration. To get detailed and accurate estimates, one should consult with people experienced in the relevant field, people who will perform the task and those who understand the importance of the estimates. Established estimating techniques should be used in order to estimate software development projects effectively. Phased estimating This technique sub-divides the whole project into phases. Each phase is considered a project and there is need to estimate the cost and schedule of each, as well as adhering to the estimates (Verzuh, 2008). Apportioning This technique factors in the total project estimates, which is then divided to the phases of the project (Verzuh, 2008) Parametric estimates Here, the whole project is divided into small basic units. The units then act as a basis for calculating the estimates of the whole project Bottom-up estimating This technique factors in the estimates of the step by step phases of achieving the project goal. The estimates of these steps are combined to come up with the overall estimate. Balancing the Trade-off among Cost, Schedule, and Quality This ensures consistency of the phases of the project and that the project adheres to estimated costs and schedules so as to keep the project and the costs in check. Balancing can take place in either of three phases. Project Phase Re-estimate the Project This involves reviewing the estimates and analyzing them so as to have reasonable and workable cost estimates. Re-assign tasks to utilize float of schedule Here, the tasks that are most demanding or are behind schedule are re-assigned with additional personnel so as to be within schedule and reduce chances of cost increase. Add staff to the Project This aims at reducing the time taken to complete a project. Projects that take short time end up using lesser time than long projects. Use of Internal Experts The use of internal experts ensures quality is achieved without additional expenses and wastage of resources and time. Use of external Experts Where there is lack of experts in the project, acquiring experts will ensure maximum productivity and cost efficiency of the project. Outsourcing This involves sharing responsibility of a project to another firm. It saves the cost of employing experts with skills needed to perform only a portion of the project. Schedule Crash A crash program reduces the time taken to complete a project and hence keeping the costs at bay. Overtime Working overtime ensures that a lot more can be accomplished in a day. It reduces the fixed costs like rent chares needed to accomplish a project. Business Phase Product Scope reduction Reducing the requirements of the end product will have direct impact on time to get the final product and the cost requirements. Fixed-Phase Scheduling Setting a fixed date for completion of the project ensures that the project is completed within the cost and time schedule from the estimates. Fast-Tracking Performing different task at the same time ensures that the time and costs of the project are manageable. Phased Product Delivery Projects can be subdivided into small useful parts. These parts can generate revenue needed to take the project to maturity. Do It Twice—Quickly and Correctly This involves performing a project in a harried manner up to completion and then getting back to perfect the project. This ensures that only useful staff remains in place to improve the project, thus reducing the costs. Profit Requirements change Keeping the profit margins low will ensure that the project keeps the costs low so as to be competitive in the industry. Such a project will regulate expenses and ensure they are manageable. Enterprise Phase This phase ensures that only projects that are manageable and cost effective are undertaken. Here, the available resources are considered when choosing a project to undertake. Project Cost management To ensure the costs of a computer science and information technology project are at bay, policies and procedures need to be established, planning documented and management and cost control implemented (Institute, 2013). Much attention needs to be directed towards determining the budget, estimating costs, assets of organizational process, the environmental factors of the enterprise and planning for cost management. Project Quality Management The activities and procedures taken to ensure quality in a project enable the project to achieve its main objectives. The project can achieve more with less cost implications through constant and regular improvements. According to Institute (2013), projects need to plan for quality management, carry out quality assurance through evaluating quality requirements together with the output of the project and controlling the quality through documentation and monitoring of the processes and procedures involved in managing quality. References Verzuh, E. (2008). The FAST FORWARD MBA in Project Management. Hoboken, New Jersey. : John Wiley & Sons, Inc. Institute, P. M. (2013). Cover image for A Guide to the Project Management Body of Knowledge, Fifth Edition. Newtown Square, Pennsylvania: Project Management Institute, Inc. Read More