3 Major Tools And Techniques For A Cost Management Plan
In my previous article, I have talked about some of the inputs of plan cost management plan for projects. In this article, I want to look at some of the tools and techniques that are needed in order to plan a cost management plan for projects. Follow me as we look at that in this article.
Here are the techniques for plan cost management for projects…
#1 Expert Judgement
One of the major tools that project management needs to plan and decide on their cost management is expert judgement. It is not every time that the project manager will have to know everything about the project. Most at times, the project manager will have to rely on advice from those that will actually do the work. He needs to discuss with experts within and outside the organisation in order to properly plan the project.
He can also get expert advice from previous similar projects. It can also be based on information from experts in the industry. It can be based on cost estimating and budgeting that has been done in the industry as well as earned value management calculations done before or after the project execution.
#2 Data Analysis
A data analysis technique that can be used for this process includes but is not limited to alternative analysis. Alternative Analysis can include reviewing strategic funding options such as self-funding, funding with equity, or funding with debt. It can also include considerations of ways to acquire project resources such as making, purchasing, renting or leasing.
Project teams may hold planning to develop the cost management plan. Attendees may include the project manager, the project sponsor, selected project team members, selected stakeholders, anyone with responsibility for project costs, and others needed.
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