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Foundations in Cost Management for Project Managers

Cost management

Learn how to estimate, budget, and control costs

The ability to estimate, budget, and control costs is essential to the success of a project. If costs are not managed properly, the project could suffer overruns and, ultimately, failure. Implementing key concepts, tools, and techniques can help to ensure the project does not collapse due to financial mismanagement. Cost Management Plans can help address the policies, processes, and procedures on how the costs will be estimated, managed, and controlled throughout the project's lifecycle.

Join us to learn about estimating, budgeting, and controlling costs, as well as how to develop and implement Cost Management Plans. Applying these key tools and techniques can help project managers better manage costs and, in turn, increase the likelihood of their projects being completed successfully.

Course Outline

Lesson 1. Overview of Cost Management
  • Define key cost management concepts
  • Triple Constraints
  • Work Breakdown Structure (WBS) Review
  • Define the Project Manager's role in cost management
  • Challenges in estimating and controlling costs
  • Cost Management Plan
  • Determine how to manage costs and the relationship with other project elements
  • Define how costs will be measured, processes and reporting
  • Describe the project manager's role in managing project costs
Lesson 2. Estimating
  • Types of cost estimates
  • Estimating techniques
  • Building in contingency for risks
  • Cost categories
Lesson 3. Develop the Budget
  • Creating a baseline estimate/budget
  • Identifying and applying management reserves
  • Establish baseline cost estimate in the Statement of Work (SOW)
Lesson 4. Managing Change to the Project Cost
  • Defining the change control process
  • Sources of change
  • Updating the project management plan
Lesson 5. Measuring Performance 
  • Utilizing Earned Value Management (EVM) to determine project progress
  • Applying EVM to determine if and when corrective action should be taken

Learner Outcomes

After completing this course, participants will be able to:
  • Describe the key concepts associated with cost management
  • Explain estimating techniques and the situations in which they should be applied
  • Describe the project manager's role in managing project costs, applying specific tools and techniques-- Work Breakdown Structure, Expected Monetary Value, and the Statement of Works-- and measuring project performance
  • Demonstrate how to establish a budget and total cost baseline for measuring project performance
  • Apply change control for building an audit trail and tracking cost changes throughout the project's life cycle

FOUNDATIONS IN COST MANAGEMENT FOR PROJECT MANAGERS COURSE INFORMATION

Contact Hours
4 hours

Course Fee(s)
Contact us

Next Steps

This course is not currently offered to the public.