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Chapter 6 Cost Management

Tham khảo tài liệu 'chapter 6 cost management', công nghệ thông tin, cơ sở dữ liệu phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Chapter 6 Cost Management CONTENTS 6.1 INTRODUCTION.3 6.2 PROCESS DESCRIPTION.3 6.2.1 Resource Planning.3 6.2.2 estimating Costs.4 6.2.2.1 Bottom-Up Estimating.5 6.2.2.2 Analogous Estimating.5 6.2.2.3 Parametric Estimating.5 6.2.24 Design-to-Cost Estimating.5 6.2.2.5 Computer Tools.6 6.2.3 Cost Budgeting.6 6.2.4 Cost Control.7 6.3 COST MANAGEMENT CHECKLIST.8 6.4 REFERENCES.9 6.5 RESOURCES.9 February 2003 6-1 Chapter 6 Cost Management Condensed GSAM Handbook This page intentionally left blank. 6-2 February 2003 Chapter 6 Cost Management 6.1 Introduction Cost is one of the three pillars supporting project success or failure the other two being schedule and performance. Projects that go significantly over budget are often terminated without achieving the project goals because stakeholders simply run out of money or perceive additional expenditures as throwing good money after bad. Projects that stay within budget are the exception not the rule. A project manager who can control costs while achieving performance and schedule goals should be viewed as somewhat of a hero especially when we consider that cost performance and schedule are closely interrelated. The level of effort and expertise needed to perform good cost management are seldom appreciated. Too often there is the pressure to come up with estimates within too short a period of time. When this happens there is not enough time to gather adequate historical data select appropriate estimating methods consider alternatives or carefully apply proper methods. The result is estimates that lean heavily toward guesswork. The problem is exacerbated by the fact that estimates are often not viewed as estimates but more as actual measurements made by some time traveler from the future. Estimates once stated have a tendency to be considered facts. Project managers must remem- ber that estimates are the best guesses by estimators under various forms of pressure and with personal biases. They must also be aware of how others