Cost Unit BSBPMG504A Manage project cost part 1. Diploma Project Management Captain Cook College Sharon Boyle
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