Project Cost Management

Project budget and Project costs plays a

key role in the project success.
The goal of this course is to develop skills
required
i d to
t effectively
ff ti l manage projects
j t
cost and budget.

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CourseOutline PCMforMPM1
CourseOutline
1.
2.
3.
4.
5
5.
6.
7.

EstimateCosts.(PMBOK7th Area)
DetermineBudget.(PMBOK7th Area)
th Area)
ControlCosts.(PMBOK7
(
)
CapitalBudgetingTechniques.(NPV,IRR..)
Project Feasibility Study (Actual Projects)
ProjectFeasibilityStudy.(ActualProjects)
PC1,PC2,.PC5.(Govt.Requirements)
CostAccounts.

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ToolsandTechniquesForProjectManagement

Because every project is unique, Project

M
Managers
and
d their
h i teams must have
h
a good
d
understanding of what tools and techniques are
available
il bl before
b f
th
they
can make
k the
th more
difficult decisions of which ones to use on their
projects
j t and
d how
h
t implement
to
i l
t them.
th
Schwalbe, Kathy,
Project Management Techniques, The Internet Encyclopedia, Volume 3 (2004), p. 108

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Diffrent Project Mangement Bodies in the world

1. PRINCE2. (Projects in Controlled Environments) Since 1975
2. APM(AssociationforProjectManagement).Since1972UK
3. PMI(ProjectManagementInstitute)Since1969.USA
CertificationsOfferedByPMIare;
(CAPM) ,(PMP) ,(PgMP) ,(PfMP)SM,(PMIACP) ,
(PMIRMP) ,(PMISP)

PMP Certification by PMI USA is the most important industry

recognized certification for project managers. Globally
recognized and demanded,
demanded the PMP demonstrates that you
have the experience, education and competency to lead
and direct projects.

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ThePMBOK GuideFifthEdition
PMBOK reflects the collaboration and knowledge of
working
k
project managers and
d provides
d
the
h
fundamentals of project management as they apply to a
wide range of projects.
projects This internationally recognized
standard gives project managers the essential tools to
practice p
p
project
j
management
g
and deliver organizational
g
results.
The PMBOK GuideFifth Edition is the preeminent
(excellent) global standard for project management. It
represents
t generally
ll recognized
i d Good
G d Practices
P ti
th t all
that
ll
project managers need to attain high standards and
project excellence.
excellence
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Project Management Processes

1. The project management is accomplished through
the appropriate application and integration of 47
Logically grouped project management Processes.
2. The main activities of each PM process group can
be mapped into 10 knowledge areas.
areas PMBOK
Fifth Edition 2013.

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10

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Three Separate Phases within a Project

Ist Phase

2nd Phase

3rd Phase

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Project Charter
1. Formally recognizes the existence of a project.
2. Refers to the business need the project is
addressing.
g
3. Describes the product to be delivered.
4 Gives the project manager the authority to
4.
apply resources to the project.

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Project Vs Product Scope

Product scope The features and functions that are to be
included in a product or service.
Project
j
scope
p The work that must be done in order to deliver
a product with the specified features and functions.
Project scope management: It is primarily concerned with
defining and controlling what is and is not included in the
project.
Project Scope statement includes:
1. Project justification, the major deliverables, and the
project objectives.
objectives
2. Criteria used to determine if the project or phase has
been successfully
y completed.
p
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Balancing the competing project constraints

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Project is sucessful when

when!!
Completedwithin
p
scheduledtime

S
Scopeachieved.
hi
d
Acceptedbythe
customer
Completedwithin
C
l t d ithi
approvedbudget

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DefineProject.?
[PMBOK] Descibes a project as;

a temporary endeavor to produce a unique

product service or result
product,
result
Temporary:(Definitivebeginningandend)
Uniqueness:(Notwoprojectsarealike)
(No two projects are alike)
Aprojectcanproduceanyoffollowings;
1. Product.
(e.g. Constructing a building or infrastructure, Carrying out a
change in the existing structure.)
2. Service.
(e.g. Modification in MIS, Implementing a new business process)
3 Result.
3.
Result
(Anoutcomeoradocumentlikefeasibilityreport)
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Project Vs Opration

1. Project :
Temporary Assignment, Produces Unique Product,
Follow PM Plan.

2. Operations:
Ongoing Assignment, Produces Repetitive Output, Follow
SOPs.

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