L7 Project Cost Management分析和总结最新分析和总结.docxVIP

School of Information Technology Bachelor of Information Technology Project Management: CIT3114 Lecture 7: 22/10/2012 Topic: Project Cost Management Learning Objectives To understand the importance of good project cost management To explain basic project cost management principles, concepts, and terms To describe how resource planning relates directly to project cost management To explain cost estimating using definitive, budgetary, and rough order of magnitude (ROM) estimates To understand the processes involved in cost budgeting and preparing a cost estimate for an information technology project To understand the benefits of earned value management and project portfolio management to assist in cost control To describe how software can assist in project cost management Definitions 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 like dollars Project cost management includes the processes required to ensure that the project is completed within an approved budget Project cost management processes Resource planning: determining the required resources and their quantities Cost estimating: developing an estimate of the costs and 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 Profits are revenues minus expenses Life cycle costing is estimating the cost of a project plus the maintenance costs of the products it produces Cash flow analysis is determining the estimated annual costs and benefits for a project Benefits and costs can be tangible or intangible, direct or indirect Sunk cost should not be a criteria in project selection Resource Planning Some questions to consider: How difficult will it be to do specific tasks on the project? Is there anything unique i