This document outlines an agenda for a project management meeting, including a discussion of cost management techniques and completing a cost management unit. It then provides an overview of earned value management including basic elements, cost and schedule variances, and how EVM can integrate scope, schedule, and cost to track project performance. Responsibilities of a project cost manager are also listed, such as assisting with budget development, monitoring costs, and contributing to the cost finalization process.
For details https://mudassiriqbal.net/project-cost-management/
Project Cost Management establishes the budget baseline and costs to cover all activities and risks throughout the Project Life cycle.
- Cost is one of 3 Triple constraints of the project. Managing costs of the project is very crucial and hardest part of the project. It spans across all phases of the project right from conception to closure of the project.
- Cost Management is not just controlling “Costs”; it involves definitive planning and preparing budgets. Collecting cost associated data. Comparing the data to prepared budgets and taking appropriate actions when needed.
- The process involved in estimating, budgeting, and controlling cost so that the project can be completed within approved budget.
- Value analysis (value engineering)
• Looking at less costly way to do the same work within the same scope
For details https://mudassiriqbal.net/project-cost-management/
Project Cost Management establishes the budget baseline and costs to cover all activities and risks throughout the Project Life cycle.
- Cost is one of 3 Triple constraints of the project. Managing costs of the project is very crucial and hardest part of the project. It spans across all phases of the project right from conception to closure of the project.
- Cost Management is not just controlling “Costs”; it involves definitive planning and preparing budgets. Collecting cost associated data. Comparing the data to prepared budgets and taking appropriate actions when needed.
- The process involved in estimating, budgeting, and controlling cost so that the project can be completed within approved budget.
- Value analysis (value engineering)
• Looking at less costly way to do the same work within the same scope
The project management monitoring and controlling starts as soon as a project begins. Project monitoring and controlling processes are where the performance of the project is measured and action is taken based on an analysis of this data.
This is the 5th presentation as part of PM Awareness Sessions I\'ve made for my company\'s (ITEC) staff to increase their awareness of PM best practices.
The project management monitoring and controlling starts as soon as a project begins. Project monitoring and controlling processes are where the performance of the project is measured and action is taken based on an analysis of this data.
This is the 5th presentation as part of PM Awareness Sessions I\'ve made for my company\'s (ITEC) staff to increase their awareness of PM best practices.
Cost management and performance evaluation in petroleum upstream industry part bHamdy Rashed
Cost control and management is not appropriate only for manufacturing and commercial industry;
cost management is applied in upstream industry such as Petroleum exploration, development and
production cost. Many Petroleum Companies don’t pay more attention to cost control and
especially during exploration phase except if Companies face financial dilemma, declining
production or if they see they cannot meet their planned schedule of Capital program that lead
them to not meet their obligation, commitments and required return, therefore, they start
considering cost reduction or control. This paper provide management accountant, cost controller,
financial controller, financial manager, internal auditor and cost recovery auditor with brief of cost
control, how cost is analyzed and managed and performance is measured in Petroleum upstream
industry.
Opening talk at Monitorama, talks about the problems of monitoring, challenges of creating monitoring tools and why monitoring vendors keep getting disrupted. Ended with a discussion of simulation testing and serverless architectures - Monitorless.
Understanding the Project Management Body of Knowledge (PMBOK®) Guide: Transi...ASPE, Inc.
The 4th edition of A Guide to the Project Management Body of Knowledge (PMBOK® Guide) continues the on-going efforts of the Project Management Institute to provide practitioners with an easy to understand and implement standard for the fundamental practices of project management. As the basis for much of the Project Management Professional (PMP) examination, understanding the PMBOK® Guide is fundamental not only for practitioners but for all those planning on taking the exam. This presentation provides an overview of the major differences between the PMBOK® Guide's 3rd and 4th editions, including the areas of process changes, terminological changes, and differences in emphasis.
Project Management PowerPoint PPT Content Modern SampleAndrew Schwartz
184 slides includes: the definition of projects, characteristics of projects, what project is not, project management basics, characteristics, and successful project management. The process of project management, role of a project manager, learning from best practices, project management practices, the project management institute, PMBOK body of knowledge, connecting project with strategy, project management process, how to create a project plan, project management challenges and advantages, the cycles and challenges of project management, project scheduling, building project teams, project requirements, project processes, celebrations, recognitions, rewards, how to's and more.
A brief introduction on various concepts of Project Cost, covering various types of Project Costs, Processes to be followed for developing project budget, project budget components, contingency and management reserves, earned value management
Project Mangement - overview of the Cost Management knowledge area within project management. Describes the 4 processes within Project Cost Management and the process groups impacted.
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Earned schedule role in performance reporting and other important delay indicators.
Video: https://www.youtube.com/watch?v=FbA6RWB1gDM&feature=youtu.be
The full course: https://www.luqmanacademy.com/course?course=project-control-using-evm_399sl6015424f8aba9
Video: https://twitter.com/magedkom/status/1354678096683618305?s=20
2. Presentation –
Revision of last week’s terms
Cost management techniques – some detail as
requested
Time to catch up and finalise LMS
Morning Tea
Balance of cost unit
◦ SB Cost Unit started last week & finish tomorrow
Everyone continues with Cost
◦ Today & Friday – completing cost Friday 23 August
3. 1. EVM an overview
2. Basic Elements
3. Cost Variances
4. Schedule Variances
4. tracking tools upon which to base forecasts
Integrates scope, schedule & cost
Answers many questions stakeholders need
Performance can be shown as
◦ Past
◦ Current
◦ Predictive
Promises to reduce over-runs
5. financial analysis specialty from United States
Government programs in the 1960s,
Now significant branch of project
management.
In the late 1980s and early 1990s, EVM
emerged as a project management
methodology
EVM has become an essential part of every
project tracking.
7. Planned Value
◦ (PV) = PV or Budgeted cost of work scheduled BCWS
= Hourly Rate * Total Hours Planned or Scheduled
Actual Cost
◦ (AC) = hourly rate x total hours spent
Earned Value
◦ (EV)= Baselined costs x % complete
% Completed Planned
◦ % Completed planning =PV/BAC
8. Cost Variance (CV) indicates how much over
or under budget the project is.
Why is under cost a problem?
(CV) = Earned Value (EV) – Actual Cost (AC)
Also
CV = BCWP – ACWP
◦ Positive Cost Variance Indicates the project is under
budget
◦ Negative Cost Variance Indicates the project is over
budget
9. Cost Variance % - how much over or under
budget the project is in terms of percentage
CV% = CV/EV
◦ Or
CV% = CV/Budgeted Cost of Work
10. CPI = EV/AC
Shows how efficient we are
Above 1 good efficiency
Below 1 project not using resources
efficiently
11. TCPI = Total Budget – EV/Total Budget – AC
Another measure of efficiency –
◦ The correct people do the correct things within a
clear process
◦ Above 1 utilization must be stringent
◦ Below 1 lenient.
12. Schedule Variance (SV) = Earned Value (EV) -
Planned Value (PV)
How much is yet to be completed as per
schedule
+ve Schedule variances = we are ahead of
time
-ve Schedule variance = we are behind
schedule
Then same % as for Costs
13. Budget at Completion = total budget
BAC = Baselined effort hours x hourly rate
Estimate to complete – just what it says.
Estimate hours required x hourly rate
14.
15. 1. Assist with the
development of the project
budget
2. Monitor project costs
3. Contribute to cost
finalisation process
16. Determine
◦ estimated costs for tasks & activities and
◦ communicate these costs to others for inclusion in
project budget
Map costs against
◦ duration /effort &
◦ resources allocated, and
◦ communicate to project manager for inclusion
project plan,
budget
expenditure flow
Contribute to
◦ development of cost management strategies &
processes,
◦ financial authorisation within delegated authority
17. Monitor income and expenditure against
◦ agreed project plan
◦ budgets to facilitate cost management throughout
the project life cycle
Use established cost management methods,
techniques & tools
Implement & monitor
◦ agreed actions
◦ report progress
18. Project records
◦ cost management lessons learned
◦ cost verification and validation documentation
◦ input to cost management plans
◦ invoice and payment records
◦ lists of potential costs
◦ project and/or organisation files and records
◦ reports to relevant stakeholders
19. Provide assistance in the finalisation and transfer
of financial assets, liabilities and records to the
client or relevant operational support agency
Provide assistance in the review of project
outcomes by use of project records, to determine
the effectiveness of initial and subsequent cost
management strategies and processes
Report cost management issues and responses to
project/program manager for application in
future projects