7.4 Control Costs
Process Definition
Controlling costs is the process of continuous monitoring of project spending verses the cost baseline. It allows variances to be discovered so the project manager can take corrective action.
Figure 45. Project Management Body of Knowledge Figure 7-10. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th Edition" by Project Management Institute, 2013, p. 232. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.
Process Assessment
The biggest hurdle for the project manager is to ensure they are evaluating expenditures with regards to the value of work being done and not just trying to stay within budget. The if staying within a strict budget means the work being completed doesn't meet project goals then the project will fail.
(Inputs) Work Performance Data
Work performance data is raw data on activities being performed. This example is a snapshot of Microsoft Project 2013 project reports taken from an assignment I completed PMGT 501 Fundamentals of Project Management, MS Project Lesson 1.
(Tools & Techniques) Earned Value Management
Earned value management is a method that correlates scope, resource measurements, and schedule to determine project performance. This example is a paper discussing earned value analysis as it relates to the project schedule and costs. This example was from PMGT 502 Effective Communications for Managing Projects.
(Outputs) Cost Forecasts
Cost forecasts is an estimate or prediction of what the costs might look like based on historical data. These estimates include earned value analysis. This example is an excerpt from a paper discussing earned value analysis and an example forecast from a Case Study I completed. This example was from PMGT 502 Effective Communications for Managing Projects and MGMT 524 Management Science.