The project charter also defines the project approval requirements that will influence the management of the project costs. Plan Cost Management: Inputs (Project Charter) The project charter provides the preapproved financial resources from which the detailed project costs are developed. This process is performed once or at predefined points in the project. The key benefit of this process is that it provides guidance and direction on how the project costs will be managed throughout the project. Governance - Does the organization have formal or informal audit and governance policies, procedures, and guidelines? Plan Cost Management Plan Cost Management is the process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled. Use of agile approach - Does the organization use agile methodologies in managing projects? How does this impact cost estimating? Project Cost Management: Tailoring Knowledge management - Does the organization have a formal knowledge management and financial database repository that a project manager is required to use and that is readily accessible.Įstimating and budgeting - Does the organization have existing formal cost estimating and budgeting-related policies, procedures, and guidelines.Įarned value management - Does the organization use earned value management in managing projects? For example, the cost of an acquired item may be measured when the acquisition decision is made or committed, the order is placed, the item is delivered, or the actual cost is incurred or recorded for project accounting purposes. Example: limiting the number of design reviews can reduce the cost of the project but could increase the resulting product's operating cost.Īnother aspect of cost management is recognizing that different stakeholders measure project costs in different ways and at different times. Project Cost management should consider the effect of project decisions on the subsequent recurring cost of using, maintaining, and supporting the product, service, or result of the project. Project Cost Management is primarily concerned with the cost of the resources needed to complete project activities. TERMS IN THIS SET (60) Project Cost Management Project Cost Management includes the process involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget. Objectives can include scope, schedule, cost, and quality +218 more terms
Moving forward on a project without a proactive focus on risk management increases the impact that a realized risk can have on the project and can potentially lead to project failure Risk an uncertain event or condition that, if it occurs, has an effect on at least one project objective. Risk exists the moment a project is conceived.A conscious choice must be made at all levels of the organization to actively identify and pursue effective risk management during the life of the project.A consistent approach to risk should be developed for each project, and communication about risk and its handling should be open and honest.These risk attitudes are driven by perception, tolerances, and other biases, which should be made explicit wherever possible Individuals and groups adopt attitudes toward risk that influence the way they respond.Organizations perceive risk as the effect of uncertainty on their project and organizational objectives.
0 kommentar(er)
