Process Definition

The Control Costs Process involves monitoring project performance from a cost point of view, and managing the project cost baseline based on any required project changes.  The key benefit to this process is that it helps identify any variance to the planned cost budget and provides a means for implementing change and mitigating risk.

Process Assessment

The value associated with the Control Costs Process is that several tools are available to help identify costs risk.  The use of Earned Value Management (EVM) makes it possible to assess activity performance based on budgeted plan versus actual cost.  Activities that earn value place the project in an under-budget condition whereas activities that lose or exceed budget, place the project in an over-budget condition.  The sooner these tools are utilized the more likely project management will be able to identify and correct any cost related issues.

Figure 41. Control Costs: Inputs, Tools and 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.

Artifacts

1.  Earned Value Management (Tools & Techniques): This PMGT 501 Chapter 13 homework assignment utilizes Earned Value Management (EVM) in determining project cost performance.  Planned cost, Actual Cost, and Earned Value have been calculated to indicate project cost performance.  

2.  Performance Reviews (Tools & Techniques):  This PMGT 502 WBS 8.3 assignment visits calculations required to support value analysis based on value gained through planned versus actual performance.  This information provides an excellent foundation when reporting performance to stakeholders.

3.  Project Funding Requirement (Input):  The control costs process requires and understanding of the project funding or budget.  This Fukushima Daichi group project created a planned budget requirement, including contingency and management reserves.  This input provides a reference to be used in controlling project costs.