7.4 Control Costs
The Control Costs process monitors project progression and update costs while managing changes to the project cost baseline. It helps to identify deviation to the project planned costs and possible corrective action to minimize threats or capitalize on opportunities. The Inputs Tools and Techniques and Outputs for this process are listed in figure 41.
Figure 41. Manage Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th Edition" by Project Management Institute, 2013, p.215. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.
During the Control Costs process the project team monitors and updates daily expenditures evaluating them against statistical earn value and projected cost models; and coordinates any cost increase through the integrated change control process.
This process facilitate the project teams ability to monitor budget consumption against the work being accomplished. It will help identify variance or deviation from the projected budget and allow for cost control measures to be implemented. Most things in a project i.e., schedule, quality, and procurement, effect the project costs. All of these processes must be considered during the Control Cost process.
The timed phased budget requirements developed in this artifact is from PMGT501 it show the entire budget request. see 7.4.1
Tools & Techniques
One of the analytical tools used to determine continued viability of a project is the To Complete Performance Index. It is a ratio of the amount of work remaining to the baseline budget request. a number lower than 1 means a project is over the baseline budget and decisions should be made to continue, ask for more money, or cancel the project. In this case there was enough left in the reserve to continue. see 7.4.2
The Dash board included as this artifact illustrates to the stakeholder all the performance date including the current budget and forecast. see 7.4.3