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...
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...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.
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