Day 3 Final Revision(Cost)

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