Comprehensive Guide to Project Cost Management

This module covers the most important aspects of project cost management
required to complete a project in line with our governance standards
.
[2x]
[1x]
Welcome to Project Cost
Management
[2x]
[4x]
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
I
n
 
t
h
i
s
 
m
o
d
u
l
e
 
y
o
u
 
w
i
l
l
 
l
e
a
r
n
 
t
o
:
Recognize the importance of Project Cost Management
and how it relates to the project budget.
Use
 
the various techniques to develop effective project
cost estimates.
Develop a cost baseline for your project.
Manage your project costs to your baseline.
Manage cost changes.
[5x]
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
This training 
module
 
presents a wide range of tools
and templates that can be applied by project
leaders. Not every tool may apply to your project.
Please choose the tools and templates appropriate
to your project assignment.
[6x]
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
Plan cost management
Estimate costs
Determine budget
Control costs
These processes are
iterative and intertwined
with project efforts.
[1x]
[1x]
[2x]
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
What is cost management?
How is cost management
governed at XX
International?
How does scope impact cost
management?
How are stakeholders
involved in cost
management?
Project Scope dictates the level of costs to be
incurred yet availability of funds may place
limitations on scope. Changes to the scope of your
project may impact cost and shall always be
carefully managed and validated with your sponsors
via a formal process.
[5x]
[6x]
[3x]
[4x]
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
The four cost management processes 
provide the
framework to manage your project costs
.
[2x]
[1x]
[3x]
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
Plan Cost
Management
Estimate Costs
Determine
Budget
Control Costs
[4x]
[2x]
[3x]
The four cost management processes 
provide the
framework to manage your project costs
.
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
Plan Cost
Management
Estimate Costs
Determine
Budget
Control Costs
Documents the policies and
procedures, roles and
responsibilities to help manage
project costs. It may include project
return on investment, opportunity
cost, and payback expectations.
Forecasts what each project activity
will cost based on the resources
required to complete it. It produces
activity cost estimates and includes
the documentation of assumptions
behind the estimates.
Adds up the estimated costs to get a
budget for the entire project,
producing the cost baseline and
project funding requirements.
Keeps the actual costs and the
planned budget in line using [20x]
work performance information, cost
forecasts, and change request
updates. Click on each of the process
boxes for details about it.
[plan]
[estimate]
[determine budget]
[control]
Let’s check your knowledge on this section. Click the
button below when you are ready to answer a few
questions.
Begin Knowledge Check
[1x]
[14x]
Start Section Again
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
Knowledge Check
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
Plan Cost Management
Estimate Costs
Determine Budget
Control Costs
It outlines procedures and policies, roles and responsibilities for
managing costs. It will also cover change management and
escalation processes, reporting formats, and frequency.
Using 
estimation 
tools and techniques to determine a
grounded estimate of the costs of each element in the project.
Keeping the actual costs and the planned budget in line using
work performance information, cost forecasts, and change
request updates.
The cost estimate for each work package is added up to get a
total for the project and a cost baseline. Then other
information is considered, such as the risk register or historical
data, to judge whether the estimate is realistic.
A
B
C
D
Plan Cost Management
[1x]
[1x]
[1x]
Plan Cost Management is the first step in the cost
management process.
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
Plan Cost Management
F
o
c
u
s
e
s
 
o
n
 
e
s
t
a
b
l
i
s
h
i
n
g
 
a
 
c
o
s
t
 
m
a
n
a
g
e
m
e
n
t
 
s
y
s
t
e
m
 
f
o
r
 
t
h
e
 
p
r
o
j
e
c
t
.
[2x]
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
[2x]
What is the project cost
management plan?
What is documented in the
cost management plan?
What sources of information
are helpful to create project
cost management plan?
It identifies:
Who is responsible for managing costs
Who has the authority to approve changes
to the project or its budget; and the change
approval process
How cost performance is quantitatively
measured and reported
T
h
e
 
r
e
p
o
r
t
 
f
o
r
m
a
t
s
,
 
s
o
u
r
c
e
s
 
o
f
i
n
f
o
r
m
a
t
i
o
n
,
 
f
r
e
q
u
e
n
c
y
,
 
a
n
d
 
t
o
 
w
h
o
m
 
t
h
e
y
a
r
e
 
p
r
e
s
e
n
t
e
d
[7x]
[8x]
[9x]
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
[1x]
What should the cost
management plan
include?
[1x]
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
[2x]
[2x]
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
The cost
management plan
includes:
Governance, cost measurements,
and reporting formats
Project budget
Cost variance responses
Reallocation of costs
Reduced scope
Reduced quality
Alternative supply solution
Increased budget
Cost change control process
Escalation process
[3x]
[4x]
[5x]
[6x]
Reporting formats
The M
icrosft 
P
ortfolio 
S
erver / SAP / Capex
database are our 
internal system
s
 that track
the costs and expenses of a project. Project
reporting occurs from these systems.
Additional budget approval process
Cost change control at XX International is
governed by the supplementary AR policy and
the Internal Change Order (ICO) procedure.
Click on the buttons to view more information.
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
Let’s check your knowledge on this section. Click the
button below when you are ready to answer a few
questions.
Begin Knowledge Check
[6x]
[1x]
Start Section Again
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
Knowledge Check
What elements are included in the cost management plan? Drag and drop the
correct elements to include.
Drop cost management plan
elements here
Cost measurements
Project budget
Roles &
responsibilities for
managing costs in
the project
Rules for spending
Reporting formats
Cost change control
Escalation process
Cost descriptions
Cost variance
responses
E
s
t
i
m
a
t
e
P
l
a
n
B
e
g
i
n
D
e
t
e
r
m
i
n
e
C
o
n
t
r
o
l
C
o
n
c
l
u
d
e
Slide Note

Slide ID: 001

Audio:

[1x] Welcome to this overview on Project Cost Management!

[2x] This module covers the most important aspects of project cost management required to complete a project in line with our governance standards. Let’s begin! [4x] Click “Next” to continue.

Programming Notes: Fade in text in sync with narrator reading each. Show purple bar and International graphic using a wipe animation. Show the white arrow pointing to NEXT at the end of the timeline.

Graphic(s): first slide in template – XX branding

Embed
Share

This module delves into the essential aspects of project cost management, outlining key processes like planning, estimating, budgeting, and control. By learning to recognize the significance of cost management, develop precise cost estimates, and manage project costs efficiently, you can align your projects with governance standards. The training covers tools and templates applicable to project leaders, emphasizing the iterative nature of cost management processes.


Uploaded on Sep 18, 2024 | 0 Views


Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

E N D

Presentation Transcript


  1. Project Cost Management Determine Begin Plan Estimate Conclude Control Welcome to Project Cost Management [1x] This module covers the most important aspects of project cost management required to complete a project in line with our governance standards. [2x] [2x] [4x]

  2. Project Cost Management

  3. Project Cost Management Determine Begin Plan Estimate Conclude Control In this module you will learn to: [5x] Recognize the importance of Project Cost Management and how it relates to the project budget. Use the various techniques to develop effective project cost estimates. Develop a cost baseline for your project. Manage your project costs to your baseline. Manage cost changes.

  4. Project Cost Management Determine Begin Plan Estimate Conclude Control [6x] This training module presents a wide range of tools and templates that can be applied by project leaders. Not every tool may apply to your project. Please choose the tools and templates appropriate to your project assignment.

  5. Project Cost Management Determine Begin Plan Estimate Conclude Control [1x] [1x] Plan cost management Estimate costs Determine budget Control costs These processes are iterative and intertwined with project efforts. [2x]

  6. Project Cost Management Determine Begin Plan Estimate Conclude Control What is cost management? [3x] How is cost management governed at XX International? Project Scope dictates the level of costs to be incurred yet availability of funds may place limitations on scope. Changes to the scope of your project may impact cost and shall always be carefully managed and validated with your sponsors via a formal process. [4x] How does scope impact cost management? [5x] How are stakeholders involved in cost management? [6x]

  7. Project Cost Management Determine Begin Plan Estimate Conclude Control The four cost management processes provide the framework to manage your project costs. [2x] Plan Cost Management [1x] [2x] Estimate Costs [3x] Determine Budget [3x] Control Costs [4x]

  8. Project Cost Management Determine Begin Plan Estimate Conclude Control The four cost management processes provide the framework to manage your project costs. Plan Cost Management Estimate Costs Determine Budget [plan] Documents the policies and procedures, roles and responsibilities to help manage project costs. It may include project return on investment, opportunity cost, and payback expectations. Control Costs

  9. Project Cost Management Determine Begin Plan Estimate Conclude Control Let s check your knowledge on this section. Click the button below when you are ready to answer a few questions. [1x] Begin Knowledge Check Start Section Again [14x]

  10. Project Cost Management Determine Begin Plan Estimate Conclude Control Knowledge Check A It outlines procedures and policies, roles and responsibilities for managing costs. It will also cover change management and escalation processes, reporting formats, and frequency. Plan Cost Management Estimate Costs B Using estimation tools and techniques to determine a grounded estimate of the costs of each element in the project. Determine Budget The cost estimate for each work package is added up to get a total for the project and a cost baseline. Then other information is considered, such as the risk register or historical data, to judge whether the estimate is realistic. C Control Costs D Keeping the actual costs and the planned budget in line using work performance information, cost forecasts, and change request updates.

  11. Project Cost Management Determine Begin Plan Estimate Conclude Control Plan Cost Management 1 [1x] [1x] [1x]Plan Cost Management is the first step in the cost management process.

  12. Project Cost Management Determine Begin Plan Estimate Conclude Control Plan Cost Management [2x] Focuses on establishing a cost management system for the project. [2x]

  13. Project Cost Management Determine Begin Plan Estimate Conclude Control [7x] What is the project cost management plan? It identifies: Who is responsible for managing costs Who has the authority to approve changes to the project or its budget; and the change approval process How cost performance is quantitatively measured and reported The report formats, sources of information, frequency, and to whom they are presented What is documented in the cost management plan? [8x] What sources of information are helpful to create project cost management plan? [9x]

  14. Project Cost Management Determine Begin Plan Estimate Conclude Control [1x] What should the cost management plan include? [1x]

  15. Project Cost Management Determine Begin Plan Estimate Conclude Control [2x] Governance, cost measurements, and reporting formats [2x] The cost management plan includes: Project budget [3x] Cost variance responses Reallocation of costs Reduced scope Reduced quality Alternative supply solution Increased budget [4x] Cost change control process [5x] Escalation process [6x]

  16. Project Cost Management Determine Begin Plan Estimate Conclude Control Reporting formats The Microsft Portfolio Server / SAP / Capex database are our internal systems that track the costs and expenses of a project. Project reporting occurs from these systems. Appropriation Request (AR) Additional budget approval process Policy Cost change control at XX International is governed by the supplementary AR policy and the Internal Change Order (ICO) procedure. Click on the buttons to view more information. Internal Change Order (ICO) Procedure

  17. Project Cost Management Determine Begin Plan Estimate Conclude Control Let s check your knowledge on this section. Click the button below when you are ready to answer a few questions. [6x] Begin Knowledge Check Start Section Again [1x]

  18. Project Cost Management Determine Begin Plan Estimate Conclude Control Knowledge Check What elements are included in the cost management plan? Drag and drop the correct elements to include. Roles & responsibilities for managing costs in the project Rules for spending Cost measurements Project budget Reporting formats Cost change control Drop cost management plan elements here Cost variance responses Escalation process Cost descriptions

Related


More Related Content

giItT1WQy@!-/#giItT1WQy@!-/#giItT1WQy@!-/#giItT1WQy@!-/#giItT1WQy@!-/#