25 Jan Cost planning starts with
PROJ586 Project Management Systems
Week 4 Discussion
COST PLANNING AND EARNED VALUE ANALYSIS
Cost planning starts with the proposal for the project, at which time project costs are estimated. And for budgeting purposes, it is best to keep the work packages or activities small in terms of scope and duration. Once your budget is planned and allocated across your work packages, it is critical to monitor and control your project’s cost. What are some of the ways that a project manager can take these budgeting plans and track and compare them to actual data? In what sense is some cost reporting not reflective of the actual work performed? How can a project manager remedy this situation? Additionally, why is monitoring and controlling the project cost important for the success of the project? What are some key components to monitor the health of the project, as it relates to earned value? How is earned value management different than straight financial accounting?
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