Monitoring and Controlling: Cost
7.4 Control Costs
Process Definition
Cost control involves monitoring the progress of project execution to ensure the baseline plan is being adhered to. The project manager must update the budget to reflect project progress and any deviations from plan. All budget increases must be approved through a formal change control process. Two key PM activities include enforcing budgetary discipline on the project team and maintaining updated budget forecasts.Process Assessment
Earned value management is a powerful tool in controlling costs. And it must be initiated and adhered to early in the project, which is when most projects that are going to go off the rails begin to do so.
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.
- Work Performance Information: Homework problem from PMGT 614 to develop a performance report showing schedule variances through earned value calculations. Work performance information and measurements are outputs from the "Control Costs" process.
- Cost Forecast: This homework problem from PMGT 501 demonstrates how to forecast Budget at Completion (BAC) and Variance at Completion (VAC). These budget forecasts are key outputs from the "Control Costs" process.
- Earned Value Management: Brief overview of Earned Value Management, a key tool and technique of the control costs process.