Project cost management involves ensuring a project is completed within its approved budget. It includes processes to plan resources, estimate costs, allocate budgets, and control changes. Resource planning determines what physical resources like people, equipment, and materials are needed and in what quantities to perform project activities. It draws from information like the work breakdown structure, historical data, and organizational policies to identify required resources. The output is the resource requirements needed to complete the project.

1. INDEX
Definition
Of
Project
Cost
Managem-
ent
1 Major
Activities
Of PCM
2 Resource
Planning
3

2. WHAT IS PROJECT
COST
MANAGEMENT?

3. PROJECT COST MANAGEMNET
 Includes the processes required to
ensure that the project is
completed within the approved
budget.
 Concerned with the cost of the
resources needed to complete the
project activities.
 Project Cost Management should
also consider the information
needs of different stakeholders.

4. MAJOR PROJECT COST MANAGEMENT PROCESSES
RESOURCE
PLANNING
• Determining
what
resources &
what
quantities to
be used.
COST
ESTIMATING
• Developing an
estimation of
the cost of the
resources.
COST
BUDGETING
• Allocating the
overall cost
estimate to
individual work
items.
COST CONTROL
• Controlling the
changes to the
project budget.

5. WHAT IS RESOURCE
PLANNING?

6. RESOURCE PLANNING
 It involves determining what physical
resources(people, equipment , resources) and what
quantities of each should be used to perform
project activities.
 For example, if a food processing plant has to be
set up , then following resources will be required;:
 Land
 Machines
 Labour
 Raw material
 Skilled workforce
 Construction workers
 Industry experts

7. INPUTS
• Identifies Project elements that will need resources
WORK BREAKDOWN STRUCTURE
• What type of resources were earlier used
HISTORICAL INFORMATION
• Project justification & objectives
SCOPE STATEMENT
• Knowledge of what resources are potentially available
RESOURCE POOL DESCRIPTION
• Policies regarding purchasing
ORGANIZATIONAL POLICIES

8. TOOLS & TECHNIQUES
EXPERTJUDGEMENT
• Expert
assessment may
be required to
determine the
inputs to this
process.
• Expert may be
an individual or
a group.
ALTERNATIVESIDENTIFICATION
• Technique used
to generate
different
approaches to
the project.
Resource
Requirement
OUTPUT

9. THANK YOU
ANJALI MEHTA
PGDM2/1504
PROJECT MANAGEMENT