January 2025
Intermediate to advanced
368 pages
10h 4m
English
Content preview from Project Management ToolBox, 3rd Edition
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8COST PLANNING
Cost is a key factor in project planning, tracking, and statusing. Cost metrics are often the most watched on a project, and delivering on budget is a critical success factor.
Cost planning is the process by which the organizational goals are translated into a plan that specifies the allocated resources, the selected estimating methods, and the desired schedule for achieving the goals of the project. The cost-planning process culminates in the establishment of a project budget that represents the organization’s investment in the project.
Project cost estimating can be accomplished in various ways as dictated by the needs of the project and the policies of the organization. Since project managers need to be able to respond to and address varying organizational and project situations, they need to have various cost-planning tools in their PM Toolbox. This chapter describes some widely used project cost-planning tools.
COST MANAGEMENT PLAN
The Cost Management Plan consolidates the information needed to effectively plan, estimate, manage, and track project costs. Among other elements, it provides terminology, estimate types, estimating methods, and the variance thresholds for cost management.
To develop a Cost Management Plan, a project manager should have knowledge about the organization’s financial policies, financial rate structure, and project staffing policies.
Financial policies inform which types of cost estimates will be used and for what purpose. Staffing ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.