Cost Unit BSBPMG504A Manage project cost
part 1.
Diploma Project Management Captain Cook College
Sharon Boyle
Welcome back Refresher re
◦ Project definition ◦ Project management plan
An Introduction & overview of Cost Unit◦ an overview ◦ Estimating techniques
Morning Tea◦ Video re Cost Estimating techniques◦ links to WBS◦ Discuss Assessment items
Lunch Start LMS reading & Questions
Lesson plan17 January
Friday 18 January Discussion re Assessment Items
◦ More detail around Assessment items for Cost Unit◦ Negotiate & agree date for Project management meeting◦ Structuring a cost management plan
Morning Tea Work on either cost management plan or LMS activitiesLunch Discuss answers for Activities 1 & 3 – leave Written/Oral to next
week Continue working on LMS24 & 25 January
◦ More detailed analysis - EVA ◦ Variations & Closeouts◦ Clarification on Assessments◦ Finish LMS activities◦ Project Meeting
Overview of balance of unit
The projects we are considering are characterised by the following:◦ the need for a comprehensive and multi-faceted project plan◦ the need for a formal internal or external communications
strategy◦ a dedicated and diverse project budget◦ multiple administrative components◦ multiple operational components◦ a wide range of stakeholders◦ a project operations team.
Video Project management plan ◦ http://www.youtube.com/watch?feature=endscreen&v=m
kymWoHY48Y&NR=1 This video is shown through youtube and this college acknowledges the
author as shown.
A refresher – Project management
1. Determine project costs 2. Monitor and control project costs 3. Conduct financial completion activities
Three basic elements within the Cost unit
Overview from PMBOK page 167
◦ Work up the resource requirements with input from stakeholders
◦ Estimate project costs & agreed cost management processes
◦ Develop & implement a cost management plan subject to Delegated authority Understanding of stakeholders & others Usefulness to management of project finances
1. Determine project costs
Cost estimating from WBS & resource schedules
Cost budgeting - aggregating Cost control – influencing factor impacting
on budgets & controlling impact on project
1.1 Estimating
Others may include: relevant project authority program manager project specialists or other personnel team members
Key Terms – determining project costs
Project costs are estimated to a level of accuracy available considering:◦ availability of information at the time◦ contingencies to allow for identified risks and
uncertainty◦ organisational requirements, for example
overhead and profit margin◦ stage of the project life cycle
Key Terms – determining project costs
Delegated authority means that activities will:◦ be conducted routinely or as changing circumstances
dictate◦ be done independently within broad guidance or by
taking the lead of a team◦ involve consultation with other project members,
teams and internal stakeholders◦ involve the selection, use and supervision of
appropriate time management methods, tools and techniques
◦ take into account internal organisational change and external environmental change
Key Terms – determining project costs
Trudy Robinson Cost estimating – part 1. http
://www.youtube.com/watch?v=hUBdN2slAbo&feature=relmfu
Types of estimating
Things to note from Trudy Robinson’s video
Morning Tea
Carry out the agreed financial monitoring – actual Vs baseline◦ Identify which cost analysis
methods are relevant ◦ Evaluate options◦ Report to those who need to know◦ Implement, monitor and respond
through out lifecycle. Costs do not let go at any
stage.
2. Monitor and control project costs
Next week we will look at ◦ Earned Value Management◦ Forecasting cost to complete◦ Performance reviews◦ Variance analysis
2.1 Tools & techniques to monitor & control costs
Conduct appropriate close out activities◦ Has everyone been paid?◦ What about the variations? ◦ Where do we stand?◦ Detailed records must be kept◦ Any lessons learnt?
3. Conduct financial completion activities
Let’s discuss Using Microsoft Project here is the best
training video http://
www.youtube.com/watch?v=sPwURRG9_Gs Hint; watch this a few times.
Cost & budget links to WBS
Welcome back Refresher re
◦ Project definition ◦ Project management plan
An Introduction & overview of Cost Unit◦ an overview ◦ Estimating techniques ◦ Video re Cost Estimating techniques
Morning Tea links to WBS Discuss Assessment itemsLunch Start LMS reading & Questions
Lesson plan17 January
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