Discover what goes into estimating and managing project costs to deliver a project within budget.
- [Voiceover] Because most projects have a budget, cost management includes processes to ensure that your project comes in within that budget. During planning, you put together a cost management plan that spells out how you're going to handle costs in the project. Next, you pull planning info together, like your work breakdown structure, schedule, and estimated resources so you can estimate project costs.
There are many estimating techniques to choose from, such as expert judgment, parametric estimating, and bottom-up estimating. The methods you choose depend on the project and your organization. Cost estimates improve over time as you learn more about the project. For example, during initiation, your cost estimate is often a rough order of magnitude, something like plus or minus 75%.
Once work is underway, however, you may be able to estimate within five or 10%. For some projects, the cost estimate becomes the budget. However, many projects are given a budget to meet. In that case, you may need to juggle scope, resources and schedule until the cost estimate matches the budget. Once work begins on your project, you monitor status and track actual costs.
If actual costs for completed work are greater than baseline costs, you can take corrective action to reduce cost overruns. That's how cost management helps you complete your project within budget.
Bonnie Biafore has always been fascinated by how things work and how to make things work better. In this course, she explains the fundamentals of project management, from defining the problem, establishing project goals and objectives, and building a project plan to managing team resources, meeting deadlines, and closing the project. Along the way, she provides tips for reporting on project performance, keeping a project on track, and gaining customer acceptance.
Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
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- Defining the components of a project
- What it takes to be a project manager
- Using project management software like Microsoft Project
- Managing project scope, budget, and schedule
- Managing project resources, including people
- Managing project risk
- Initiating a project
- Identifying and managing stakeholders
- Identifying requirements and deliverables
- Developing a project plan
- Building a project schedule
- Assigning resources to tasks
- Understanding the critical path
- Running the project
- Managing teams
- Monitoring performance
- Closing a project
Skill Level Beginner
Project Management Foundations: Communicationwith Doug Rose1h 47m Appropriate for all
Project Management Foundations: Budgetswith Bob McGannon1h 11m Appropriate for all
1. Getting to Know Project Management
2. Exploring Project Management Knowledge Areas
3. First Things First
How to develop requirements4m 19s
4. Developing a Project Plan
5. Building a Project Schedule
6. While You Run the Project
7. Working with Teams
8. Monitoring and Controlling Progress and Performance
9. Closing a Project
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