Cost Management

Topics included in Schedule Management:

- Plan cost management
- Estimate costs
- Determine the budget
- Control costs
- Useful external web-links

Other related sections of the PMKI:

- Project controls
- Earned Value and Earned Schedule.
 
 

Temporary Subject List - this page is being rebuilt:

• Cost Management: Processes required to complete the work of the project/program in a cost effective manner:
  Included in this topic:
  -  Cost management tools (software).  
  -  Cost management methodologies, including Value Management.  
  -  Cost management processes and techniques.  
  -  Quantity Surveying.  
  -  Earned Value.  
  -  Earned Schedule.  
  Download the U.S. Government Accountability Office (GAO) Cost Estimating and Assessment Guide.    
  

• Cost management tools (software):  
• Next document to be added
  
• Cost management methodologies: Including Value Management  
• Mosaic's list of annotated Cost Management and Value Engineering web links
• Art: Stop Throwing Money Away! The effect of sunk costs and emotions on the decision to kill a project.
  
• Cost management processes and techniques:  The work of implementing and managing ‘cost management’ processes and systems:  
• WP: Cost Estimating. Guidelines for creating a good estimate at the right level of detail.  
• Prs: Estimating Fallacies - excessive detail does not help .  Detailed is not synonymous with accurate!  Excessive detail can reduce accuracy and devalue an estimate.     
• Blg: The reference case for management reserves. Reference case forecasting is one way to remove the effect of optimism bias and other systemic errors in estimating the value of a project.    
• WP: Depreciation. Depreciation is a way of spreading the cost of an item over its useful life, this paper looks at what a PMP candidate needs to know.      
  
• Quantity Surveying:  
• Next document to be added
  
• Earned Value: 
  For a general discussion on Earned Value (and Earned Schedule) visit our Blog: http://mosaicprojects.wordpress.com/category/project-controls/evm-es
  Download the U.S. Government Accountability Office (GAO) Cost Estimating and Assessment Guide.
  
• Earned Value Resources:
• PMI's Practice Standard for Earned Value Management
• Mosaic's Earned Value reference page
  
• Mosaic's list of annotated Earned Value & Earned Schedule web links
• WP: Earned Value Formulae.  A summary of the basic values and formulae used in Earned Value calculations.           
• WP: Understanding the use of  TCPI in EVM. The TCPI is the only EV metric that can provide a consistent measure of the likelihood of achieving a target total cost.      
• PP: Earned Value - An Introduction to the Basic Principals. This paper provides a basic overview of the workings of 'Earned Value' and how it assists in the effective management of projects.   
• PP: Earned Value Business Management - Using EV to Manage Outsourced Contracts. The practical application of EVM to the management of external contractors and suppliers.    
• Art: The CPI Stability Myth.  Research has found CPI stability is not a ‘given’ at the 20% or any other 'stage' of a project; and it rarely exists on small commercial projects. 
• Art: Earned Value Confusion = No Value.  Using a variety of different acronyms to define the same variable damages the credibility of EV globally. 
• Prs: EVM Past Present Future.  The evolution of Earned Value Management, current challenges and a possible future solution.    
  
• Earned Schedule:  
• Art: Earned Schedule. A brief introduction to Earned Schedule.  
• Art: Predicting project completion.- Earned Schedule and the 'P-Factor' - improving forecast completion estimates.    
  

Useful external web-links

• Association for the Advancement of Cost Engineering (AACEi) - International association for cost engineers, PMs and planners: https://web.aacei.org/
   
• USA Government Accountability Office - Cost Assessment Guide, Best Practices for Estimating and Managing Program Costs. Free download from: https://www.gao.gov/products/GAO-09-3SP
   
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