Cost planning - Revision history

Smári Ársælsson: /* Application of cost management planning */

2023-05-09T21:54:19Z

Application of cost management planning

← Older revision		Revision as of 21:54, 9 May 2023
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	A Cost Management Plan describes the process of deciding how costs will be budgeted, estimated, managed, monitored and controlled. The main advantage of this process is that it provides a clear roadmap on how to handle project costs throughout its lifecycle. A Cost Management Plan is typically executed at the start of the project or at predetermined milestones. Figure 1 illustrates the inputs, tools, and outputs, while Figure 2 presents the data flow diagram of the process.		A Cost Management Plan describes the process of deciding how costs will be budgeted, estimated, managed, monitored and controlled. The main advantage of this process is that it provides a clear roadmap on how to handle project costs throughout its lifecycle. A Cost Management Plan is typically executed at the start of the project or at predetermined milestones. Figure 1 illustrates the inputs, tools, and outputs, while Figure 2 presents the data flow diagram of the process.
	[[File:Smari Figure 1.png\|400px\|thumb\|none\|Figure 1: Control Costs: Inputs, Tools & Techniques, and Outputs (source:<ref name="PMI" />)]]		[[File:Smari Figure 1.png\|400px\|thumb\|none\|Figure 1: Control Costs: Inputs, Tools & Techniques, and Outputs (source:<ref name="PMI" />)]]
	[[File: ~~smari_Figure_2~~\|400px\|thumb\|none\|Figure 1: Control Costs: Data Flow Diagram (source:<ref name="PMI" />)]]		[[File:Smari Figure 2.png\|400px\|thumb\|none\|Figure 1: Control Costs: Data Flow Diagram (source:<ref name="PMI" />)]]

	It is important that the cost management plan happens early in the project planning phase, this ensures that performance of the processes stay within the scope of the cost planning. <ref name="PMI" />		It is important that the cost management plan happens early in the project planning phase, this ensures that performance of the processes stay within the scope of the cost planning. <ref name="PMI" />

Smári Ársælsson: /* Application of cost management planning */

2023-05-09T21:53:11Z

Application of cost management planning

← Older revision		Revision as of 21:53, 9 May 2023
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	=='''Application of cost management planning'''==		=='''Application of cost management planning'''==
	A Cost Management Plan describes the process of deciding how costs will be budgeted, estimated, managed, monitored and controlled. The main advantage of this process is that it provides a clear roadmap on how to handle project costs throughout its lifecycle. A Cost Management Plan is typically executed at the start of the project or at predetermined milestones. Figure 1 illustrates the inputs, tools, and outputs, while Figure 2 presents the data flow diagram of the process.		A Cost Management Plan describes the process of deciding how costs will be budgeted, estimated, managed, monitored and controlled. The main advantage of this process is that it provides a clear roadmap on how to handle project costs throughout its lifecycle. A Cost Management Plan is typically executed at the start of the project or at predetermined milestones. Figure 1 illustrates the inputs, tools, and outputs, while Figure 2 presents the data flow diagram of the process.
	[[File: ~~smari_Figure_1]]~~		[[File:Smari Figure 1.png\|400px\|thumb\|none\|Figure 1: Control Costs: Inputs, Tools & Techniques, and Outputs (source:<ref name="PMI" />)]]
	~~[[File: smari_Figure_1~~\|400px\|thumb\|none\|Figure 1: Control Costs: Inputs, Tools & Techniques, and Outputs (source:<ref name="PMI" />)]]
	[[File: smari_Figure_2\|400px\|thumb\|none\|Figure 1: Control Costs: Data Flow Diagram (source:<ref name="PMI" />)]]		[[File: smari_Figure_2\|400px\|thumb\|none\|Figure 1: Control Costs: Data Flow Diagram (source:<ref name="PMI" />)]]

Smári Ársælsson: /* Earned value management (EVM) including earned schedule (ES) */

2023-05-09T21:51:18Z

Earned value management (EVM) including earned schedule (ES)

← Older revision		Revision as of 21:51, 9 May 2023
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	ES shows how much of the project has been completed percentage wise. ES is calculated by dividing Planned Value (PV) by Planned Accomplishment Rate (PAR). If the ES is larger than zero, the project is ahead of schedule, this means the project has earned more value than planned. The Schedule Performance Index (SPI) also using earned schedule metrics and is calculated ES divided by AT. This index can be used to measure the efficiency work that is being accomplished.		ES shows how much of the project has been completed percentage wise. ES is calculated by dividing Planned Value (PV) by Planned Accomplishment Rate (PAR). If the ES is larger than zero, the project is ahead of schedule, this means the project has earned more value than planned. The Schedule Performance Index (SPI) also using earned schedule metrics and is calculated ES divided by AT. This index can be used to measure the efficiency work that is being accomplished.
			<ref name="TES"> (2012). The earned shedule. Project Management Institute. https://www.pmi.org/learning/library/evm-cpm-evaluate-project-performance-6355#:~:text=To%20calculate%20the%20EV%20for,are%20expressed%20in%20cost%20units. </ref>.
	https://www.pmi.org/learning/library/evm-cpm-evaluate-project-performance-6355#:~:text=To%20calculate%20the%20EV%20for,are%20expressed%20in%20cost%20units.

	Also included in the ES theory is formulas that forecast final completion date using ES, AT and estimated duration. This helps project managers to predict the future course of the project and make necessary adjustments to ensure the project is completed within the given timeframe.		Also included in the ES theory is formulas that forecast final completion date using ES, AT and estimated duration. This helps project managers to predict the future course of the project and make necessary adjustments to ensure the project is completed within the given timeframe.

Smári Ársælsson: /* Earned value management (EVM) including earned schedule (ES) */

2023-05-09T21:49:47Z

Earned value management (EVM) including earned schedule (ES)

← Older revision		Revision as of 21:49, 9 May 2023
Line 48:		Line 48:

	ES shows how much of the project has been completed percentage wise. ES is calculated by dividing Planned Value (PV) by Planned Accomplishment Rate (PAR). If the ES is larger than zero, the project is ahead of schedule, this means the project has earned more value than planned. The Schedule Performance Index (SPI) also using earned schedule metrics and is calculated ES divided by AT. This index can be used to measure the efficiency work that is being accomplished.		ES shows how much of the project has been completed percentage wise. ES is calculated by dividing Planned Value (PV) by Planned Accomplishment Rate (PAR). If the ES is larger than zero, the project is ahead of schedule, this means the project has earned more value than planned. The Schedule Performance Index (SPI) also using earned schedule metrics and is calculated ES divided by AT. This index can be used to measure the efficiency work that is being accomplished.

	https://www.pmi.org/learning/library/evm-cpm-evaluate-project-performance-6355#:~:text=To%20calculate%20the%20EV%20for,are%20expressed%20in%20cost%20units.		https://www.pmi.org/learning/library/evm-cpm-evaluate-project-performance-6355#:~:text=To%20calculate%20the%20EV%20for,are%20expressed%20in%20cost%20units.

Smári Ársælsson: /* Application of cost management planning */

2023-05-09T21:48:29Z

Application of cost management planning

← Older revision		Revision as of 21:48, 9 May 2023
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	=='''Application of cost management planning'''==		=='''Application of cost management planning'''==
	A Cost Management Plan describes the process of deciding how costs will be budgeted, estimated, managed, monitored and controlled. The main advantage of this process is that it provides a clear roadmap on how to handle project costs throughout its lifecycle. A Cost Management Plan is typically executed at the start of the project or at predetermined milestones. Figure XX illustrates the inputs, tools, and outputs, while Figure XX presents the data flow diagram of the process.		A Cost Management Plan describes the process of deciding how costs will be budgeted, estimated, managed, monitored and controlled. The main advantage of this process is that it provides a clear roadmap on how to handle project costs throughout its lifecycle. A Cost Management Plan is typically executed at the start of the project or at predetermined milestones. Figure 1 illustrates the inputs, tools, and outputs, while Figure 2 presents the data flow diagram of the process.
	[[smari_Figure_1\|400px\|thumb\|none\|Figure 1: Control Costs: Inputs, Tools & Techniques, and Outputs (source:<ref name="PMI" />)]]		[[File: smari_Figure_1]]
	[[smari_Figure_2\|400px\|thumb\|none\|Figure 1: Control Costs: Data Flow Diagram (source:<ref name="PMI" />)]]		[[File: smari_Figure_1\|400px\|thumb\|none\|Figure 1: Control Costs: Inputs, Tools & Techniques, and Outputs (source:<ref name="PMI" />)]]
			[[File: smari_Figure_2\|400px\|thumb\|none\|Figure 1: Control Costs: Data Flow Diagram (source:<ref name="PMI" />)]]

	It is important that the cost management plan happens early in the project planning phase, this ensures that performance of the processes stay within the scope of the cost planning. <ref name="PMI" />		It is important that the cost management plan happens early in the project planning phase, this ensures that performance of the processes stay within the scope of the cost planning. <ref name="PMI" />

Smári Ársælsson: /* Application of cost management planning */

2023-05-09T21:47:19Z

Application of cost management planning

← Older revision		Revision as of 21:47, 9 May 2023
Line 55:		Line 55:
	=='''Application of cost management planning'''==		=='''Application of cost management planning'''==
	A Cost Management Plan describes the process of deciding how costs will be budgeted, estimated, managed, monitored and controlled. The main advantage of this process is that it provides a clear roadmap on how to handle project costs throughout its lifecycle. A Cost Management Plan is typically executed at the start of the project or at predetermined milestones. Figure XX illustrates the inputs, tools, and outputs, while Figure XX presents the data flow diagram of the process.		A Cost Management Plan describes the process of deciding how costs will be budgeted, estimated, managed, monitored and controlled. The main advantage of this process is that it provides a clear roadmap on how to handle project costs throughout its lifecycle. A Cost Management Plan is typically executed at the start of the project or at predetermined milestones. Figure XX illustrates the inputs, tools, and outputs, while Figure XX presents the data flow diagram of the process.
	[[~~File:~~smari_Figure_1\|400px\|thumb\|none\|Figure 1: Control Costs: Inputs, Tools & Techniques, and Outputs (source:<ref name="PMI" />)]]		[[smari_Figure_1\|400px\|thumb\|none\|Figure 1: Control Costs: Inputs, Tools & Techniques, and Outputs (source:<ref name="PMI" />)]]
	[[~~File:~~smari_Figure_2\|400px\|thumb\|none\|Figure 1: Control Costs: Data Flow Diagram (source:<ref name="PMI" />)]]		[[smari_Figure_2\|400px\|thumb\|none\|Figure 1: Control Costs: Data Flow Diagram (source:<ref name="PMI" />)]]

	It is important that the cost management plan happens early in the project planning phase, this ensures that performance of the processes stay within the scope of the cost planning. <ref name="PMI" />		It is important that the cost management plan happens early in the project planning phase, this ensures that performance of the processes stay within the scope of the cost planning. <ref name="PMI" />

Smári Ársælsson: /* Annotated bibliography */

2023-05-09T21:46:24Z

Annotated bibliography

← Older revision		Revision as of 21:46, 9 May 2023
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	'''Mehmet Nihat Hanioglu. (2022). A cost based approach to project management. Planning and Controlling Construction Project Costs'''<br/>		'''Mehmet Nihat Hanioglu. (2022). A cost based approach to project management. Planning and Controlling Construction Project Costs'''<br/>
	The book presents a comprehensive overview of cost-based project management, covering topics such as budgeting, cost estimating, cost control, and project cost analysis. It provides practical guidance and examples for professionals involved in construction project management~~, as well as researchers and students~~ interested in cost-based approaches to project management.		The book presents a comprehensive overview of cost-based project management, covering topics such as budgeting, cost estimating, cost control, and project cost analysis. It provides practical guidance and examples for professionals involved in construction project management or are interested in cost-based approaches to project management.

	''' References '''		''' References '''
	<references />		<references />

Smári Ársælsson: /* Annotated bibliography */

2023-05-09T21:45:40Z

Annotated bibliography

← Older revision		Revision as of 21:45, 9 May 2023
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	'''Bourne, L., Walker, D., & Paulos, A. (2018). Handbook of project portfolio management (2nd ed.). Routledge.'''<br/>		'''Bourne, L., Walker, D., & Paulos, A. (2018). Handbook of project portfolio management (2nd ed.). Routledge.'''<br/>
	"Handbook of Project Portfolio Management" by Bourne, Walker, and Paulos, published in 2018, is a guide to managing project portfolios. It covers the key concepts and practices of portfolio management, with practical examples and case studies to illustrate the material. The book is intended as a guide to help managing portfolios, projects, and ~~others~~ to ~~understand~~ and ~~manage~~ the concepts relating to it.		"Handbook of Project Portfolio Management" by Bourne, Walker, and Paulos, published in 2018, is a guide to managing project portfolios. It covers the key concepts and practices of portfolio management, with practical examples and case studies to illustrate the material. The book is intended as a guide to help managing portfolios, projects, and to gain understanding and manageging the concepts relating to it.

	~~'''Mehmet Nihat Hanioglu. (2022). A cost based approach'''<br/>~~

			'''Mehmet Nihat Hanioglu. (2022). A cost based approach to project management. Planning and Controlling Construction Project Costs'''<br/>
			The book presents a comprehensive overview of cost-based project management, covering topics such as budgeting, cost estimating, cost control, and project cost analysis. It provides practical guidance and examples for professionals involved in construction project management, as well as researchers and students interested in cost-based approaches to project management.

	''' References '''		''' References '''
	<references />		<references />

Smári Ársælsson: /* What is cost planning in project, program and portfolio management */

2023-05-09T21:43:29Z

What is cost planning in project, program and portfolio management

← Older revision		Revision as of 21:43, 9 May 2023
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	The cost of a project, program or a portfolio come in many different forms, for a project the cost appears as material, labor, machinery, equipment, technology, cash, loans and knowledge and more. While for the program the costs over multiple projects are summed up to make the cost plan. This then happens again where a portfolio is a collection of programs and the portfolio cost plan consists of the combination of the program costs. From this it is easy to see that the quality of the program cost plan depend on the quality of each of the project cost plans and this applies the same way from portfolio to programs.		The cost of a project, program or a portfolio come in many different forms, for a project the cost appears as material, labor, machinery, equipment, technology, cash, loans and knowledge and more. While for the program the costs over multiple projects are summed up to make the cost plan. This then happens again where a portfolio is a collection of programs and the portfolio cost plan consists of the combination of the program costs. From this it is easy to see that the quality of the program cost plan depend on the quality of each of the project cost plans and this applies the same way from portfolio to programs.
	<ref name="CBA"> Mehmet Nihat Hanioglu. (2022).		<ref name="CBA"> Mehmet Nihat Hanioglu. (2022). A cost based approach to project management. Planning and Controlling Construction Project Costs </ref>.
	A cost based approach </ref>.

	== '''Key concepts of cost planning'''==		== '''Key concepts of cost planning'''==

Smári Ársælsson: /* Annotated bibliography */

2023-05-09T21:42:11Z

Annotated bibliography

← Older revision		Revision as of 21:42, 9 May 2023
Line 130:		Line 130:
	"Handbook of Project Portfolio Management" by Bourne, Walker, and Paulos, published in 2018, is a guide to managing project portfolios. It covers the key concepts and practices of portfolio management, with practical examples and case studies to illustrate the material. The book is intended as a guide to help managing portfolios, projects, and others to understand and manage the concepts relating to it.		"Handbook of Project Portfolio Management" by Bourne, Walker, and Paulos, published in 2018, is a guide to managing project portfolios. It covers the key concepts and practices of portfolio management, with practical examples and case studies to illustrate the material. The book is intended as a guide to help managing portfolios, projects, and others to understand and manage the concepts relating to it.

			'''Mehmet Nihat Hanioglu. (2022). A cost based approach'''<br/>


	''' References '''		''' References '''
	<references />		<references />