Information System Project Manager-Cost Management Knowledge Point _ Information System Project Management Division

Source: Internet
Author: User

Project Cost Management

Project cost management refers to the management activities of project cost estimation, project budgeting and project cost control in order to ensure that the actual cost of the project does not exceed its budget cost in the process of project implementation.

Cost estimates: An approximate estimate of the cost of resources needed to complete the project's activities

Cost Budgeting: Allocate total cost estimates to activities and work packages to establish a cost baseline

Cost Control: Control the project budget changes.

The reason for the runaway of project cost

1, the cost estimate work and the cost budget work not to be accurate and meticulous

2, many projects in the cost estimates and cost estimates and the development of project cost control methods, there is no uniform standards and norms feasible

3, the idea of the existence of misunderstanding, that the project is innovative, it naturally led to the implementation of the project will be too many variables and variables too large, the actual cost beyond the budget cost is inevitable, of course.

Project cost management includes three management processes:

Cost estimates: Cost estimates are approximate estimates of the cost of the various resources necessary to complete the project's activities

Cost budget: The project cost budget is the foundation of the project cost control, it is to assign the project cost estimate to the concrete work of the project, to determine the cost ration of the project's work and activity, to set up the control standard of the project cost, to stipulate the division of the accident cost and a project management work of using rule

Cost Control: Project organization to ensure that under changing conditions, to maximize the actual cost of the project to control the planning and budget within the management process.

Tools and techniques for cost estimation:

1, analogy estimation method: Also known as the Top-down estimation method, the collection of relevant information on similar projects in the past, together with the relevant cost experts to estimate the total cost of the current project, and then the evaluation results according to the level of the project work breakdown structure of the hierarchy passed below.

2. Resource unit Price Method: estimate the project activity by multiplying the total required resources by unit price to estimate the cost

3, the bottom of the cost estimates: Also called the Bill of quantities law. Using the project work breakdown structure chart, the production cost of each work unit is calculated by the grass-roots managers first, and the total cost of the project is obtained from the bottom up.

4, the use of computer tools: Some project management software through the function of the project cost of the estimated results.

5. Other methods of estimating: seller's bidding analysis and cost analysis of the project

6. Estimates of unforeseen events: estimated costs for contingencies, as well as consideration of cost estimates

7, Quality cost: The quality cost is divided into the prevention cost, the evaluation cost, the failure cost three parts, the reasonable resource proportion is the prevention cost to occupy more than 70%.

Steps for cost budgeting:

1, the total cost of the project to the project work breakdown structure in each of the work packages, for each of the work package to establish the overall budget cost.

2. Allocate the cost of each work package to another two times to the activities included in the work package.

3, to determine the cost of the budget expenditure and the cumulative cost of each point of the budget.

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