Work will be monitored at the level of Work Package. Although cost estimates of the activities will be detailed in work packages of the Work Breakdown Structure, the accuracy level will be determined at the third level of the WBS. Project financial cost performance will be measured and controlled by using the methodology of Earned Value Management, to be applied for the Control Accounts. Project costs will be controlled at the third level of the WBS, by creation of Control Accounts at this level for the cost tracking. Thus, the level should be balanced with the effort that can be utilized for this purpose. The lower the cost is managed in the Work Breakdown Structure, the greater will be the effort required. If a detailed Project Management Information System is not available, then the level of cost control in the Work Breakdown Structure should be such till the cost can be efficiently reported and managed. If a suitable Project Management Information System is being used, then it is recommended that the costs should be managed till the level of work package. Cost Accounts will be created at the third level of the Work Breakdown Structure. Cost Management ApproachĪpproach to be maintained for the management of cost is documented in this part of the Cost Management Plan. The Project Sponsor will use discretionary measures for authorizing cost changes to exceed budget, if necessary. The Project Manager is accountable for all cost variance, and recommending alternatives for completing the project back on planned budget. Earned value management will be used for measuring cost performance. During the project fortnightly status meeting, the Project Manager will explain the project cost performance, with measures adopted for its control. The Project Manager has been assigned the responsibility for the management and control of the project cost during the project life cycle.
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