Learn about how to track costs and control costs in a project.
- [Voiceover] During planning, you estimated what the project will cost. And possible rework the plan to fit the budget management gave you. Now that your team is working away on their tasks, you need to track the costs that are rucking up, to ensure that the project stays within budget. It's important to know the cost information that your organization cares about. That way you'll know what day to gather, and how to report Financial Information.
Ask the project sponsor, or someone in the Finance Department, how your organizations Financial Reporting works. You also need to know the level of detail to track for costs. And that typically depends, on your organizations culture, and focus. If contracts are part of your project, whether they're with the customer, or with vendors. The type of contract can determine the level of detail, you need to track. For example,with time and materials contracts, you need to obtain detailed labor and material costs, in order to build the customer.
On the other hand, fixed price contracts might not track costs is much detail. But you still need total cost, to determine the profit on the contract. How your organization tracks employees time, is another factor in project cost tracking. Some companies track work hours in minute detail, which make sense when hourly are astronomically high. Other companies think of employees salaries as a cost of doing business.
And don't track the cost of the employees time. Once you gather cost info, you need to compere it to the budget, and take action if costs are going of track. For example, if the project is over budget, you need to find out why? Perhaps scope was added work is proceeding faster than you planned, incurring costs as it does so, or people are taking more time to complete tasks. Whatever the reason, once you know it, you can came up with solutions to the problem.
Project cost is one of the three main constraints you have to handle as a project manager. So it's crucial to manage it well. If you want to learn more about Managing Project Cost. I suggest you watch Bob McGannon Course, Managing Projects 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.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- 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
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.