"Project Cost Management (PCM) is the dimension of project management which aims to ensure that a project is completed within its approved budget."
Developing a project budget, estimating costs, controlling finances, ensuring budget adherence, and maintaining profitability.
Cost estimation: Cost estimation involves the process of determining the anticipated cost that is required to complete a project. This is done based on the scope of the project, available resources, and other factors.
Cost budgeting: Cost budgeting involves the preparation of a budget that outlines the expected costs for each activity or task that is part of the project. It helps to allocate resources in an effective manner and to avoid budget overruns.
Cost control: Cost control is the process of monitoring and managing project costs to ensure that they remain within the approved budget. It involves implementing strategies to reduce or eliminate unnecessary costs, such as reducing scope or finding less expensive resources.
Cost forecasting: Cost forecasting involves predicting future project costs based on actual project data and other variables. This helps project managers to anticipate any issues that may arise and make necessary adjustments to stay within budget.
Earned Value Management (EVM): EVM is a project management tool used to measure project progress and performance in terms of its budget and schedule. It compares planned work, actual work, and work done to determine if a project is on track, ahead, or behind schedule.
Cost of Quality: Cost of Quality is a technique that involves identifying the monetary costs associated with the quality of the project. This includes the cost of fixing defects, rework, and the cost of preventing defects from occurring.
Cost Benefit Analysis (CBA): CBA is a decision-making process that compares the expected cost of a project against its expected benefits. This helps to determine if the project is worth pursuing or not.
Resource Planning: Resource planning involves the process of allocating resources effectively to ensure that the project is completed within budget. This includes determining the required resources, such as personnel, equipment, and materials, and scheduling them accordingly.
Life-Cycle Costing: Life-cycle costing involves the estimation of the total cost of a project over its entire lifespan, from development to disposal. This helps to identify the most cost-effective solution over the long term.
Cost Variance Analysis: Cost variance analysis is the process of comparing the actual cost of a project against the budgeted cost to determine if there are any variances. It helps to identify whether a project is on track or if adjustments need to be made to avoid budget overruns.
Cost Estimating: The process of calculating the expected costs of a project, typically using data from past projects or industry standards.
Cost Budgeting: The process of allocating funds to different parts of a project in order to control and manage costs.
Cost Control: The ongoing process of monitoring and managing project costs to ensure they stay within the approved budget.
Earned Value Management: A technique for measuring project performance by comparing the actual work completed and the expected work at a given point in time.
Resource Planning: The process of identifying and allocating the necessary resources (people, equipment, materials) to complete a project within a specific budget.
Vendor Management: The process of managing external vendors and their associated costs to ensure they deliver quality work on time and on budget.
Risk Management: The process of identifying potential risks and developing strategies to mitigate or manage them, including their associated costs.
Life Cycle Costing: The analysis of all costs associated with a project from start to finish, including maintenance and disposal costs, to determine the most cost-effective approach.
Value Engineering: The process of analyzing a project to identify ways to reduce costs while maintaining or improving quality.
Financial Management: The management of project funds to ensure they are allocated and used efficiently and effectively to meet project objectives.
"It encompasses several specific project management activities including estimating, job controls, field data collection, scheduling, accounting and design."
"It uses technology to measure cost and productivity through the full life-cycle of enterprise level projects."
"PCM's primary concern is the cost of the resources needed to complete the project."
"PCM should also consider the impact of project management decisions on customers' wider or life-cycle costs such as the use of the building or IT system generated by the project."
"Beginning with estimating, a vital tool in PCM, actual historical data is used to accurately plan all aspects of the project."
"Job control uses data from the estimate with the information reported from the field to measure the cost and production in the project."
"From project initiation to completion, project cost management has an objective to simplify and cheapen the project experience."
"This technological approach has been a big challenger to the mainstream estimating software and project management industries."
"Field data collection."
"Scheduling."
"It uses technology to measure cost and productivity through the full life-cycle of enterprise level projects."
"Accounting is one of the specific project management activities included in PCM."
"Project cost management has an objective to simplify and cheapen the project experience."
"Design is one of the specific project management activities included in PCM."
"Actual historical data is used to accurately plan all aspects of the project."
"Job control uses data from the estimate with the information reported from the field to measure the cost and production in the project."
"It encompasses several specific project management activities including estimating, job controls, field data collection, scheduling, accounting and design."
"PCM should also consider the impact of project management decisions on customers' wider or life-cycle costs."
"This technological approach has been a big challenger to the mainstream estimating software and project management industries."