Week 5

Project Cost Management

According to PMBOK (2008) Project Cost Management includes the processes involved in estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.

Estimate Costs— the process of developing an approximation of the monetary resources needed to complete project activities.

Determine Budget— the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline

Control Costs— the process of monitoring the status of the project to update the project budget and managing changes to the cost baseline.

Below demonstrated structure will identify further more about inputs, tools & techniques & outputs of above mentioned criteria’s.

Figure 1: Project cost management overview

Project quality management

Activity based costing (ABC), PERT, Expert judgment & historical cost fall under the category of non parametric modeling while COCOMO ii, EPA & OPA fall under parametric modeling.

Project quality management has 3 phases which are quality planning, quality assurance, & quality control. 

According to PMBOK (2008) project quality management helps to determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken.

Plan Quality— the process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance

Perform Quality Assurance— the process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.

Perform Quality Control— the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.

Figure 2: Project Quality management overview

Project Human Resource Management

As stated in PMBOK (2008) Project Human Resource Management includes the processes that organize, manage, and lead the project team. The project team is comprised of the people with assigned roles and responsibilities for completing the project.

Develop Human Resource Plan— the process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan.

9.2 Acquire Project Team— the process of confirming human resource availability and obtaining the team necessary to complete project assignments.

9.3 Develop Project Team— the process of improving the competencies, team interaction, and the overall team environment to enhance project performance.

9.4 Manage Project Team— the process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance

Figure 3: Project  Human Resource Management  overview

Project chater gives the formal authority to carry on the project. It is basically a legal document. In the environmental scanning when preparing the project chater project manager look into 

• PEST
• Value Chain
• SWOT
• Stakeholder analysis

As data collection methods of project chater 

• Interviews
• Observations
• Document requirements
• Seminars

are used.

Sponsors are the entities who gives resources.

Phases of project initiation 

• Goal setting -    What do we need
• Environmental Scanning - Why do they need it
• Project appraisal - What are the alternatives that can be used. Cash flows, Payback period, NPV, Feasibility study are used as tools.
• Documentation - Combined document including facts of why we are doing the project, when will be giving this, & the details of developers.