5 Inputs Of Estimate Costs For Projects
In my previous article, I have started a discussion about the cost management plan for projects. I have tried to define cost management and explains some of the factors that you need to take into consideration when you want to define a cost management plan for projects. In this article, I want to look at some of the inputs of estimate costs for projects. Follow me as we will be looking at that together in this article.
Now the inputs…
#1 Project Charter
The project charter provides the pre-approved resources from which the detailed project costs are developed. The project charter also defines the project approval requirements that will influence the management of the project costs.
#2 Project Management Plan
Under the project management plan, we have two vital documents that are needed to estimate the cost management plan.
Schedule management plan: The schedule management plan establishes the criteria and the activities for developing, monitoring, and controlling the schedule. The schedule management plan provides processes and control that will impact cost estimation and management.
Risk management plan: The risk management plan provides the approach for identifying, analyzing and monitoring risks. The risk management plan provides processes and controls that will impact cost estimation and management.
#3 Enterprise Environmental Factors
The enterprise environmental factor that can influence the Plan Cost Management process includes organisational culture and structure that can influence cost management. Market conditions describe what products, services, and results are available in the regional and global markets.
It also includes currency exchange rates for project costs are sourced from more than one country. It also includes published commercial information such as resource cost rate information that is often available from commercial databases that track skills and human resource costs and provide standard costs for materials and equipment.
It also includes a project management information system which provides alternative possibilities for managing costs as well as productivity differences in different parts of the world which can have a large influence on the project.
#4 Organisational Process Assets
The organisational process assets that can influence the plan cost management process includes: financial control procedures which include time reporting, required expenditure and disbursement review, accounting codes and standard contract provisions. It also includes historical information and lesson learned repository, financial database and existing formal and informal cost estimating and budgeting-related policies, procedures and guidelines.
Now your take on this argument.
We would also like to hear what you feel about the topic we discussed today. Your feedback is very important to us. Feel free to drop your comments and recommendations. If you have a contrary opinion, you can drop that too.
You can also like our Facebook Page CRMNigeria for more updates. You can do that by clicking on the link or searching for our page on Facebook.
You can also become part of our WhatsApp Group Here.
Enter your email address to get updates when we post our next article. you have to click on the link in the email sent to you to confirm your subscription. If you have been receiving our email updates and it is no longer active, please subscribe again.:
23 total views, 7 views today