Upload
jeffrey-cheah
View
8
Download
0
Embed Size (px)
Citation preview
Cost Management
2
No business in the world has ever made more money
with poorer management
-Bill Terry-
3Cost Management
Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.
Key Concepts Cost Estimates to measure
total cost Cost Baseline to define
expected cost spending Cost Performance
Measurements to monitor the cost expenditure against baseline cost
Tips
Cost Management Plan Cost Estimates Cost Baseline Earned Value Management
Change Requests
4Cost Management7.1 Plan Cost Management—The process that establishes the policies, procedures, and documentationfor planning, managing, expending, and controlling project costs.7.2 Estimate Costs—The process of developing an approximation of the monetary resources needed tocomplete project activities.7.3 Determine Budget—The process of aggregating the estimated costs of individual activities or workpackages to establish an authorized cost baseline.7.4 Control Costs—The process of monitoring the status of the project to update the project costs andmanaging changes to the cost baseline.
57.1 Plan Cost Management
67.2 Estimate Costs
77.3 Determine Budget
87.4 Control Costs
9
Beware of little expensesA small leak will sink a great ship
Benjamin franklin