Project funding requirements from determine budget 3. Cost management is the process of estimating, allocating, and controlling the costs in a project. A guide to the project management body of knowledge. T d jainendrakumar the cost management includes the processes involved in estimating, budgeting, and controlling costs so that the project can be completed within the approved budget. Project management professional pmbok cost management. Cost estimating, cost budgeting, and cost control are three cost related.
Cost control is the part of project management such that cost management processes involved in planning, estimating, budgeting, and controlling costs so that the budget can be completed within the. Thankfully, the project management body of knowledge pmbok gives us a strong foundation in this area project cost management is the fourth of 10 project management knowledge areas within. This is an effort that is overseen by the project management institute pmi, the global notforprofit member association of pm professionals which captures and publishes the pmbok within the book, a. Which of the following inputs best conveys this requirement to the estimate costs process so that. Project management plan, which contains the cost management plan and the cost performance baseline 2.
Get a guide to the project management body of knowledge pmbok guide, fifth edition now with oreilly online learning. Pmp pmbok 5th edition chapter7 project cost management. Introduction project cost management is one area where the changes are very minimal. Project cost management pmbok 5th edition slideshare. A girls guide to project management is a blog for project, programme and portfolio managers and project delivery professionals. Pmi published a manual entitled a guide to the project management body of. The second process involved with pmbok cost management strategies is cost budgeting. A guide to the project management body of knowledge pmbok guide 1. T d jainendrakumar the cost management includes the processes involved in estimating, budgeting, and controlling costs so that. Cost baseline project management plan resource management plan risk management plan cost baseline project documents. In this pmp study guide, well cover all the processes in the cost management knowledge area in pmbok 6th edition. To this effect, application of knowledge, skill, tools and. Project cost management includes the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.
Project cost management is defined as activities used to estimate, monitor, and control costs of a project. Pmp certification study notes 7 project cost management. Project cost management for project managers based on. Hence, good project management requires a firm grasp on the concepts and techniques in project. Hence, good project management requires a firm grasp on the concepts and techniques in project budgeting and cost.
Pmbok chapter 7 project cost management flashcards. Project cost management a guide to the project management. Overview of project management knowledge areas and project management processes 8 figure 12. Please refer to pmbok guide fourth edition, page 167, figure 71. The guide is a document resulting from work overseen by the project management institute pmi, which offers the capm and pmp certifications. For the purposes of this paper, cost management is defined in the pmbok as the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the. This article outlines the processes involved in managing project cost, processes that include estimating and forecasting project cost, budgeting project cost. The pmbok project cost management processes as previously stated, money is usually one of the key constraints of any project and this process is therefore all about defining the budget and managing the actual project costs within it.
Each phase of project cost management will have specialized techniques to help the. There are several activities in a project, several project resources work on project activities and. Project cost management for project managers based on pmbok. Hence, good project management requires a firm grasp on the concepts and techniques in project budgeting and cost control thankfully, the project management body of knowledge pmbok gives us a strong foundation in this area project cost management is the fourth of 10 project management knowledge areas. Project management from simple to complex open textbook.
Project cost management project management knowledge. Hence all changes and highlights are summed up in one page trends and emerging practices in. A summary of pmbok practices cost management brighthub. Introduction to project management introduction realization of these objectives requires systematic planning and careful implementation. Project cost management for project managers based on pmbok by dr. Project cost management pmp what is cost management. Project cost management pmbok 5th edition slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Project management knowledge areas bring a project to life, but that life can be chaotic and complex, which is why a project manager needs a tool to help manage all these moving parts of a.
A component of a project or program management plan that describes how costs will be planned, structured, and controlled. A guide to the project management body of knowledge pmbok guide 2000 edition 2000 project management institute, four campus boulevard, newtown square, pa 190733299 usa vii list of figures figure 11. Cost management is basically managing project funding. A guide to the project management body of knowledge pmbok. Pdf cost control is the part of project management such that cost management processes involved in planning, estimating, budgeting, and. Pmbok is a guide to project management body of knowledge. Cost management should occur early in project planning in order to establish a framework for all cost management processes and ensure that the project does not go over budget. It is also an essential part of project management. The project manager relies upon the data she has gathered from estimates to set up a realistic project budget. Cost management is a really important one among all the project management knowledge areas.
484 615 1190 492 1125 500 183 1466 586 108 697 381 236 124 432 734 197 774 66 561 162 1326 26 1160 1425 1384 1250 849 646 121 102 1408 1112 1091 290 968 1367 851 29