Introducing Project Cost Management - Planning the Project Costs

5 important questions on Introducing Project Cost Management - Planning the Project Costs

Do you need to create a cost management plan from scratch?

No, as part of utilizing organizational process assets, you might be able to re-use an already existing cost management plan in the organization.

What is a common characteristic for most planning processes?

That it is iterative, you will probably revisit the plans multiple times.

What are inputs to be used for cost management planning?

  • Project charter - provides the high level summary budget
  • Project management plan - scope baseline, schedule baseline
  • Enterprise Environmental Factors - rules, structures on how to manage costs
  • Organizational Process Assets - serve as input to cost management planning
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What is the scope of the cost management plan?

It defines:
  • how the project costs will be estimated
  • how the budget will be created, and
  • how you'll control the costs within the project
  • any analytical tools to be used for performance of project costs

(how costs will be planned, managed and controlled)

What are the contents of the cost management plan?

  • Units of measure
  • Level of precision
  • Level of accuracy
  • Control thresholds
  • Rules of performance measurement - e.g. earned value management
  • Organizational Procedure Links - links between costs and WBS deliverables
  • Reporting Formats -
  • Process Descriptions
  • Additional Planning Details

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