Project Cost Management
Project cost management is framework teams use to determine all sorts of money-related data, from building a budget to breaking down project cost variables. Acting as a powerful budgeting lens, it helps project managers check stock throughout a project’s lifecycle and control costs effectively. Essentially, if you are interested in improving your profitability – setting better rates and running more economical projects – you will want to get on Project cost management.
Project cost management is key to staying on budget, and not putting it in place can be potentially harmful for business. When scoping out budgets, project managers will estimate costs. Expenses against these will then be tracked once a project is live to stay within the cost management plan. Once the project is finished, predicted vs actual costs can be gauged, and you can cross-reference where and why any overspending happened. This analysis can then help you create more precise benchmarks for future cost management plans.
There are different metrics for the kinds of costs incurred in a project, and it is important to substantiate them when relaying budgeting data to project stakeholders and quoting them in your Project cost management plan. There are Fixed costs, Variable costs, Direct costs, Indirect costs.
Before you start a new project, you need to estimate how much it will cost you. Take into account all the resources needed to fulfil the project, from obvious requirements like people and hours, to less definite ones like ad-hoc problem-solving.
Once you have an estimate for the costs involved, you can create your project’s cost baseline, which creates the grounds for your budget. The cost baseline for your project is made by combining the cost estimates of the individual activities over your project’s lifecycle. Then, your project’s overall expenditures will be measured against this baseline.
With an approved budget and baseline, you can move onto execution. Here, you will need to monitor task direction and check if there is any deviation to the plan or scope of work, as it’ll likely create cost impacts.
Project managers can use this template when discussing project work with team members to determine effective methods for monitoring KPIs and meeting deadlines at each stage. Crisis managers can use the slides of this template when preparing a crisis recovery strategy for the company.
This template will be useful for business leaders when developing strategies to reduce the cost of manufacturing, warehouse and ancillary work. Startup executives can also use the slides from this template in preparation for their investor meeting.
Project Cost Management template will be useful for project managers, analysts, startup executives and economists. All slides in this template have all the tools you need to build a professional presentation. You can independently customize the type and size of the font, the color of the blocks and infographics. The Project Cost Management template will be a worthy addition to your collection of professional presentations.