This video teaches you how to understand typical standards for costing various types of resources, including people, facilities, and vendor services. Plus, it addresses the tradeoffs of using less expensive resources.
- Managing a purchase in the United States…is a very different experience than obtaining goods…in Mexico or China.…The cost you see or are told about a product…is typically fixed in the U.S. but is only a starting point…for a rich conversation in other countries.…These are two very different or distinct costing…or pricing standards.…Business typically have their own costing standards…for acquiring the resources you'll need…to deliver your project.…
So it's important you understand them.…Let's discuss some typical costing standards.…The first is your organization's internal costing…or accounting practices.…Every organization has some and they'll guide…your budgeting process.…Talk to your accounting department and ask what costs…they track and how they track them.…The second standard is how your company budgets…for pre-planned and last minute costs for a resource.…For example, say you need to hire a large piece of equipment…like a truck to transport materials.…
You'll probably find that to rent a truck costs…X amount per day.…
Note: This course follows the latest guidance from Project Management Institute, Inc., as outlined the PMBOK® 6 Guide.
- Recall best practices for project budgeting and estimation.
- Distinguish common estimation approaches used to build project budgets, and understand when to use them.
- Identify best practices for budget expectation management, while utilizing sound budget refinement techniques.
- Describe and explore agile project budgeting techniques.
- Review various approaches for correcting project budget overruns.
- Review sound budget reporting approaches, including how they can be used to report project status.
- Recognize the issues and changes that can put a project budget in jeopardy.