7.0 Plan Cost Management

7.1 - Plan Cost Management

Process Definition

Plan cost management is the managing and controlling of project costs to ensure the project is completed within the approved budget.  Effective use of planning, estimating, budgeting, financing, and funding is all important aspects of this process.  This process terminates at project closure.

Figure 15. Plan Cost Management: 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. 195. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.

Process Assessment

This process will vary in size based on the project scope and detail and the organization's financial department structure.  It is important to remember that this process is affected by the accuracy of the early scope definition determined in PMBOK Guide process 5.3.

ARTIFACTS

1. PMGT 502 WBS 9.4 PM Crosstalk: As an input this PM crosstalk "Lessons Learned" underscores the importance an organization must place in lessons learned knowledge bases.  
2. PMGT 502 WBS 8.3: As a technique, value analysis provides insight into how a project is performing or expects to perform.  Subject matter experts utilize this information in the development and performance monitoring of the Cost Management Plan.
3. PMGT 501 WBS 7.3 Team Case Study:  As a technique Team 3 examined a case study from the standpoint of time and cost.  Using various techniques, the team was able to organize the event to minimize both cost and time and ensure the event occurred on schedule.