1-Intro PCM 2014

Project Cost Management Project Cost Management

Project budget and Project costs plays akey role in the project success.

The goal of this course is to develop skillsi d t ff ti l j trequired to effectively manage projects

cost and budget.

Not for Sale , Print or Copy . Only for education inside the classroom. M.Shoaib Naqshbandi MPM-SZABIST Islamabad. 2014.

CourseOutlineCourseOutline PCMforMPM1PCMforMPM1

1. EstimateCosts.(PMBOK7th Area)2. DetermineBudget.(PMBOK7th Area)3. ControlCosts.(PMBOK7th Area)( )4. CapitalBudgetingTechniques.(NPV,IRR..)5 Project Feasibility Study (Actual Projects)5. ProjectFeasibilityStudy.(ActualProjects)6. PC1,PC2,.PC5.(Govt.Requirements)7. CostAccounts.


ToolsandTechniquesForProjectManagementToolsandTechniquesForProjectManagement

Because every project is unique, ProjectM d h i h dManagers and their teams must have a goodunderstanding of what tools and techniques are

il bl b f th k thavailable before they can make the moredifficult decisions of which ones to use on their

j t d h t i l t th projects and how to implement them. Schwalbe, Kathy,Project Management Techniques, The Internet Encyclopedia, Volume 3 (2004), p. 108


1. PRINCE2. (Projects in Controlled Environments) Since 1975

Diffrent Project Mangement Bodies in the worldDiffrent Project Mangement Bodies in the world

2. APM(AssociationforProjectManagement).Since1972UK

3. PMI(ProjectManagementInstitute)Since1969.USA CertificationsOfferedByPMIare;

(CAPM) ,(PMP) ,(PgMP) ,(PfMP)SM,(PMIACP) , (PMIRMP) ,(PMISP)

PMP Certification by PMI USA is the most important industryrecognized certification for project managers. Globallyrecognized and demanded the PMP demonstrates that yourecognized and demanded, the PMP demonstrates that youhave the experience, education and competency to leadand direct projects.


PMBOK reflects the collaboration and knowledge ofk d d h

ThePMBOK GuideFifthEdition

working project managers and provides thefundamentals of project management as they apply to awide range of projects This internationally recognizedwide range of projects. This internationally recognizedstandard gives project managers the essential tools topractice project management and deliver organizationalp p j g gresults.

The PMBOK GuideFifth Edition is the preeminent(excellent) global standard for project management. It

t ll i d G d P ti th t llrepresents generally recognized Good Practices that allproject managers need to attain high standards andproject excellenceproject excellence.


Project Management Project Management ProcessesProcesses

1. The project management is accomplished throughthe appropriate application and integration of 47the appropriate application and integration of 47Logically grouped project managementProcesses.

2. The main activities of each PM process group canbe mapped into 10 knowledge areas PMBOKbe mapped into 10 knowledge areas. PMBOKFifth Edition 2013.


ThreeThree SeparateSeparate Phases Phases withinwithin a Projecta Project

Ist Phase 2nd Phase 3rd Phase


Project CharterProject Charter

1. Formally recognizes the existence of a project.2. Refers to the business need the project is

addressing.g3. Describes the product to be delivered.4 Gives the project manager the authority to4. Gives the project manager the authority to

apply resources to the project.


Project Vs Product ScopeProject Vs Product ScopeProduct scope The features and functions that are to beProduct scope The features and functions that are to be

included in a product or service.Project scope The work that must be done in order to deliverj p

a product with the specified features and functions.Project scope management: It is primarily concerned with

defining and controlling what is and is not included in theproject.

Project Scope statement includes:Project Scope statement includes:1. Project justification, the major deliverables, and the

project objectivesproject objectives.2. Criteria used to determine if the project or phase has

been successfully completed.y p


Balancing the competing project constraintsBalancing the competing project constraints


Project Project isis sucessfulsucessful whenwhen!!

Completedwithin

S hi d

pscheduledtime

Scopeachieved.

Acceptedbythe

C l t d ithi

Acceptedbythecustomer

Completedwithinapprovedbudget


DefineProject.?DefineProject.?[PMBOK] Descibes a project as;[PMBOK] Descibes a project as;

a temporary endeavor to produce a uniqueproduct service or resultproduct, service or result

Temporary:(Definitivebeginningandend) Uniqueness:(No two projects are alike)Uniqueness:(Notwoprojectsarealike)Aprojectcanproduceanyoffollowings;

1. Product.(e.g. Constructing a building or infrastructure, Carrying out achange in the existing structure.)

2. Service.(e.g. Modification in MIS, Implementing a new business process)

3 Result3. Result.(Anoutcomeoradocumentlikefeasibilityreport)


Project Vs OprationProject Vs Opration

1. Project :Temporary Assignment, Produces Unique Product,Follow PM Plan.

2. Operations:Ongoing Assignment, Produces Repetitive Output, FollowSOPs.


1-Intro PCM 2014

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