The concepts and processes on how to perform project cost management according to PMBOK Guide 6th edition. You'll find key concepts and terms, plan cost management, estimate costs, determine budget, and control cost.
Presentation: 80 minutes Lab: 90 minutes After completing this module, students will be able to: Describe the architectural features of Microsoft SharePoint 2016. Identify new, deprecated, and removed features in SharePoint 2016. Describe the editions for SharePoint 2016 on-premises and Microsoft SharePoint Online. Required materials To teach this module, you need the Microsoft PowerPoint file 20339-2A_01.pptx. Preparation tasks To prepare for this module: Read all of the materials for this module. Practice performing the demonstrations and labs. Work through the Module Review and Takeaways section, and determine how you will use the information to reinforce student learning and promote knowledge transfer to on-the-job performance. As you prepare for this class, it is imperative that you complete the labs yourself. This gives you an understanding of how the labs work and the concepts that each covers, so that you can provide meaningful hints to students who might have issues. Furthermore, it will help guide your lecture to ensure that you discuss the concepts that the labs cover. Ask the students to start 20339-2A-NYC-DC1-A at this point, as per step 1 of the Lab.
Project Cost Management
Project cost management is the processes
involved in planning, estimating, budgeting,
financing, funding, managing, and controlling costs
so that the project can be completed within the
Project Cost Management Processes
• Plan Cost Management
• Estimate Costs
• Determine Budget
• Control Costs
• Earned value management (EVM): a project
management technique for measuring project
performance and progress based on the comparison of
work performed and work planned.
• Life cycle costing: the concept of looking at cost over the
entire life of the product, not just the cost of the project to
create the product.
• Value analysis (value engineering): the concept that
focuses on finding a less costly way to do the same work.
• Cost risk: cost-related risks.
Key Terms (continued)
• Types of costs:
• Variable costs: costs that change with the amount of work.
• Fixed costs: costs that do not change with the amount of work.
• Direct costs: costs directly attributable to the work on the project
• Indirect costs: overhead items or costs incurred for the benefit of
more than one projects.
• Cost estimate ranges:
• Rough order of magnitude (ROM): used during project initiating;
typical range -25 to +75 percent.
• Budget estimate: when starting the plan iteration; typical range -10
to +25 percent.
• Definitive estimate: as progress planning progresses; typical range
± 10 percent or -5 to +10 percent.
Trends & Emerging Practices
• Expansion of EVM to include the concept of
earned schedule (ES)
• Knowledge management
• Estimating and budgeting
• Earned value management
• Use of agile approach
Considerations for Adaptive Environments
• Agile practice uses lightweight estimation
methods to generate high-level forecast for
• Detailed estimates are reserved for short-term
planning horizons in a just-in-time fashion.
• In a strict-budget projects, the scope and schedule
are more often adjusted to stay within the cost
Lesson 2: Plan Cost Management
• Plan Cost Management Overview
• Plan Cost Management Data Flow
• Plan Cost Management Input
• Plan Cost Management Tools & Technique
• Plan Cost Management Output
Plan Cost Management Overview
• Plan cost management is the process of defining
how the project costs will be estimated, budgeted,
managed, and controlled.
• The key benefit: it provides guidance and direction
on ho the project costs will be managed
throughout the project.
Plan Cost Management Input
• Project charter
• Project management plan
• Schedule management plan
• Risk management plan
• Enterprise environmental factors
• Organizational process assets
Plan Cost Management Tools & Techniques
• Expert judgment
• Data analysis
• Alternative analysis
Plan Cost Management Output
• Project management plan
• Cost management plan
• Units of measure
• Level of precision
• Level of accuracy
• Organizational procedure links
• Control thresholds
• Rules of performance measurements
• Reporting formats
• Additional details
Estimate Costs Overview
• Estimate costs is the process of developing an
approximation of cost of resources needed to
complete project work.
• Key benefit: it determines the monetary resources
required for the project.
Determine Budget Overview
• Determine budget is the process of aggregating
the estimated costs of individual activities or work
packages to establish an authorized cost baseline.
• Key benefit: it determines the cost baseline
against which project performance can be
monitored or controlled.
Lesson 7: Control Cost
• Control Cost Overview
• Control Cost Data Flow
• Control Cost Input
• Control Cost Tools & Techniques
• Control Cost Output
Control Cost Overview
• Control cost is the process of monitoring the
status of the project to update the project costs
and managing changes to the cost baseline.
• Key benefit: the cost baseline is maintained
throughout the project.