INDEX

Definition Of

Project Cost

Managem-ent

1 Major Activities

Of PCM

2 ResourcePlanning

3

WHAT IS PROJECT COST MANAGEMENT?

PROJECT COST MANAGEMNET

Includes the processes required to ensure that the project is completed within the approved budget.

Concerned with the cost of the resources needed to complete the project activities.

Project Cost Management should also consider the information needs of different stakeholders.

MAJOR PROJECT COST MANAGEMENT PROCESSES

RESOURCE PLANNING• Determinin

g what resources & what quantities to be used.

COST ESTIMATING• Developing

an estimation of the cost of the resources.

COST BUDGETING• Allocating

the overall cost estimate to individual work items.

COST CONTROL• Controlling

the changes to the project budget.

WHAT IS RESOURCE PLANNING?

RESOURCE PLANNING

It involves determining what physical resources(people, equipment , resources) and what quantities of each should be used to perform project activities.

For example, if a food processing plant has to be set up , then following resources will be required;:

Land Machines Labour Raw material Skilled workforce Construction workers Industry experts

INPUTS

• Identifies Project elements that will need resources

WORK BREAKDOWN STRUCTURE

• What type of resources were earlier usedHISTORICAL INFORMATION

• Project justification & objectivesSCOPE STATEMENT

• Knowledge of what resources are potentially available

RESOURCE POOL DESCRIPTION

• Policies regarding purchasingORGANIZATIONAL POLICIES

TOOLS & TECHNIQUESEX

PERT

JUD

GEM

ENT • Expert

assessment may be required to determine the inputs to this process.

• Expert may be an individual or a group.

ALTE

RNAT

IVES

ID

ENTI

FICA

TIO

N • Technique used to generate different approaches to the project. Resource

Requirement

OUTPUT

THANK YOUANJALI MEHTAPGDM2/1504PROJECT MANAGEMENT