华科IT项目的管理ch07.pptVIP

Information Technology Project Management, Fourth Edition Chapter 7:Project Cost Management Learning Objectives Understand the importance of project cost management. Explain basic project cost management principles, concepts, and terms. Discuss different types of cost estimates and methods for preparing them. Learning Objectives Understand the processes involved in cost budgeting and preparing a cost estimate and budget for an information technology project. Understand the benefits of earned value management and project portfolio management to assist in cost control. Describe how project management software can assist in project cost management. The Importance of Project Cost Management IT projects have a poor track record for meeting budget goals. The 2003 CHAOS studies showed the average cost overrun (the additional percentage or dollar amount by which actual costs exceed estimates) was 43 percent. U.S. lost $55 billion in IT projects in 2002 from cancelled projects and overruns compared to $140 billion in 1994.* *The Standish Group, “Latest Standish Group CHAOS Report Shows Project Success Rates Have Improved by 50%,” A Standish Group Research Note (3/25/03). What Went Wrong? What is Cost and Project Cost Management? Cost is a resource sacrificed or foregone to achieve a specific objective, or something given up in exchange. Costs are usually measured in monetary units, such as dollars. Project cost management includes the processes required to ensure that the project is completed within an approved budget. Project Cost Management Processes Cost estimating: Developing an approximation or estimate of the costs of the resources needed to complete a project. Cost budgeting: Allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. Cost control: Controlling changes to the project budget. Basic Principles of Cost Management Most members of an executive board have a better understanding and are more intereste