Essay on Project Cost Management : Project Management

Essay on Project Cost Management : Project Management

Length: 1117 words (3.2 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Project Cost Management
Project cost management (PCM) is the process of which technology is used to measure an approximate estimate of funds and resources needed, in order to complete the assignment within an approved budget. Although, most companies use some form of project cost management, it is often disregarded or unacknowledged regarding the importance of this treasured tool. For instance, if a project manager (PM) does not use a cost management tool, then there is a great change the task will be behind schedule and over budget (Schwalbe, 2011).
Nevertheless, if I were tasked to prepare a cost estimate for my university in order to provide everyone an Apple or Microsoft tablet, then it would definitely be advantageous to start the estimating process the correct way. For instance, I would first start this process by developing a respectable resource requirements list with my team. This will allow us to work together and come up with the needed resources and develop several estimates based on our project. For example, I will need to figure out how many tablets that I need along with any budget constraints, warranty length, and the amount of governmental discounts permitted.
In addition, this will also give us a more feasible method of estimating our activity resources, thus providing a list of activity resource requirements. For example, I would not purchase a cheaper tablet if it did not have a good battery life, decent amount of memory, a larger screen, printing capacity, or the ability to web surf. This is why it is a great idea to use all the required information in order to come up with a good cost estimate.
Therefore, I will need to use the following types of cost estimate documents, in order to start this tedi...


... middle of paper ...


...specially since it coincides with the WBS theory of breaking down the individual work items, cost, and activities into smaller sections. This is important since the team of subject experts will each offer their knowledgeable opinions on both tablets regarding price, features, cost effectiveness, warranties, accessories, and other palpable aspects of the project. For example, I might need to hire more technicians in order to service every table, especially if a student or staff member drops one.
In closing, it would behoove me to use well-known and trusted cost management implements, such as an activity and resource requirements list, ROM, budgetary and definitive estimates, a WBS and a cost management plan. In addition, I will also need to use the parametric modeling, top-down and bottom-up methods to define the cost estimates of this tablet purchase project.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Project Budget : Cost Management Essay

- Week 6 Project Schedule and Budget Bongbong Alfaro MGMT 404 Professor Andre Franklin DeVry University Project Schedule and Budget Part 1: Project Budget (Cost Management) 1. Explain your approach to estimating the project cost (e.g. top down, bottom up, etc.) and why that method was chosen. In estimating the project cost, I need to determine which method is preferred to use either top down or bottom up approach. As an owner, I will choose that will fit my project which is the top down strategy because I should know how much the project should cost....   [tags: Project management, Resource allocation, Costs]

Better Essays
853 words (2.4 pages)

Essay about Cost And Quality Constraints On Project Management

- Time, cost and quality constraints relating to project management are interdependable and mutually exclusive. Hence a company should have a well-planned project scheduling to enjoy the fruits of time and cost related benefits. Scheduling hones the productivity and performance of an organization through customized management [2]. For example, consider a poorly planned schedule. In this kind of a project, employees don’t work seriously until the deadline for the project is near. Once the deadline is nearby, they tend to hurry up tasks which will have adverse effects on the quality of the project....   [tags: Management, Project management]

Better Essays
723 words (2.1 pages)

Higher Is Cost And Time Project Management Success Essay

- expected to decrease the execution risks (Benaroch 2002; Padhy and Sahu 2011). Based in this elements we propose the following: Hypothesis 3: The longer the Project Postponement is, the higher is Cost and Time Project Management Success (CTPMS) of IS development projects Outsourcing The outsourcing of IT functions has been widely discussed in the literature over the last 25 years (Lacity et al. 2010). In IS, companies list a plenty of motivators for outsourcing such as their core business, the rapid introduction of new products, increased productivity, increased access to technical expertise, and the lack of the required internal resources (Chang and Gurbaxani 2012; Gorla and Somers 2014;...   [tags: Project management, Team, Project team]

Better Essays
884 words (2.5 pages)

Project Cost Management Approach Essay

- PROJECT COST MANAGEMENT PLAN TEMPLATE This Project Cost Management Template is free for you to copy and use on your project and within your organization. We hope that you find this template useful and welcome your comments. Public distribution of this document is only permitted from the Project Management Docs official website at: www.ProjectManagementDocs.com COST MANAGEMENT PLAN <PROJECT NAME> COMPANY NAME STREET ADDRESS CITY, STATE ZIP CODE DATE TABLE OF CONTENTS INTRODUCTION 2 COST MANAGEMENT APPROACH 2 MEASURING PROJECT COSTS 3 REPORTING FORMAT 4 COST VARIANCE RESPONSE PROCESS 4 COST CHANGE CONTROL PROCESS 5 PROJECT BUDGET 5 INTRODUCTION The Cost Management Pla...   [tags: Control, Process, Variances]

Better Essays
1609 words (4.6 pages)

Essay on The Objectives Of Cost Management

- II. OBJECTIVES OF COST MANAGEMENT The objective of cost management is • To reduce the cost expended by an organization while strengthening the strategic position of the firm. • To identify future expenditure in a business to reduce budget overages. • Tackle challenging task in business management, to reduce construction delays. • To improve pricing decision. IMPORTANCE OF COST MANAGEMENT :- • It helps to finish project on time & in given budget. • It also helps to analyse expected cost to control project expenses....   [tags: Cost, Project management, Costs, Construction]

Better Essays
790 words (2.3 pages)

Project Management Process And Design Management Essay

- 1. Definition of Project Management. Project is a temporary attempt to achieve a goal with a start and an end. The output of the project can be a product or a service. Project management is a protocol which follows a systematic approach to create a result. There are two methodologies to complete a project: one is a project life cycle to complete the work and the other is project management process to manage the project. The project management process includes the initiating, planning, monitoring and controlling....   [tags: Project management, Management, Cost]

Better Essays
716 words (2 pages)

The Value Of Having Good Time And Cost Management Plans When Undertaking Project Execution

- Assignment 1c a1639948 Yimin Jiang 1. What is the value of having good time and cost management plans when undertaking project execution. Project time management includes some processes to ensure project finalising on time. There are seven processes in project time management: plan schedule management, define activities, sequence activities, estimate activity resources, estimate activity durations, develop schedule and control schedule (PMBOK, 2013). This indicates a good time management plan is on top priority when executing a project, because project is the combination of variety of processes....   [tags: Project management, Management]

Better Essays
721 words (2.1 pages)

Hardware Replacement Project Essay

- Hardware Replacement Project The information technologies department is improving itself by integrating the newest solution for customer relationship management (CRM). The hardware replacement project (HRP) for this addition includes five major variables. These variables are time, costs, scope, quality, and risk. Many thoughts are worth considering and taking into account when choosing the best projects, and they are important to have the most worthwhile final results for the business. The issues that affect project risks need to be discussed, and I can recommend ways to carry out this project with the minimum of necessary risk....   [tags: cost and project management analysis]

Better Essays
987 words (2.8 pages)

Essay about The Research On Cloud Computing Project

- As we see that there are more five additional activities that are been added to the Gantt chart, where the new project start with the internal research on cloud computing with other teams under the Environment Technologies Program has been developing a schedule and many others are researching about the cloud computing project. Then we identify the business of giving expert advice to people working in a professional or technical field. Here this function will help in giving the complete information about the project....   [tags: Project management, Management, PRINCE2, Cost]

Better Essays
1055 words (3 pages)

Essay on Questions On The Coat Management Plan

- The Coat Management Plan can be based of the Work Breakdown Structure (WBS), Where cost can be associated with the task required to complete the Project scope. We don 't know the project final cost until the project is completed because we can 't predict the future. So we create an estimate for the whole project based off estimates on the task involved taking into consideration, RESOURCE THE PROJECT TEAM by giving a overall cost and schedule estimate so they can control and monitor there resources....   [tags: Project management, Management, Cost]

Better Essays
732 words (2.1 pages)