7.1 Plan Cost Management
Process Definition
The Cost
Management Plan should clearly define how the Project Manager will manage
costs, as well as which project costs will be measured, reported, and
controlled. Specifically, the Cost Management Plan identifies, how to
measure project costs, the cost reporting format, cost variance and response
processes.
Figure 18. Project Management Body of Knowledge Figure 7-2. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th Edition" by Project Management Institute, 2013, p. 173. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.
Process Assessment
Project Cost Management should consider the stakeholder requirements for managing costs. Different stakeholders will measure project costs in different ways and at different times. The cost management plan will provide the criteria as to how the project team will manage costs throughout the project.
(Inputs) Project Charter
The project charter will provide an estimated budget that can be used to develop the cost management plan. This example is from a group project in PMGT written by 502 Effective Communications for Managing Projects, Jeremy Curbey, Reese Darlington, and Amanda Evans.
(Tools & Techniques) Expert Judgement
This document provides expert judgment understanding on the cost management plan and how it is developed towards meeting the business process of a project. The example is an excerpt from a group project in PGMT 612 Leading Projects Across Cultural, Corporate, and International
Boundaries, that was written by Jeremy Curbey, Khoi ChuChe, Corey Cowley, Reese Darlington, and Domingo Tuckler.
(Outputs) Cost Management Plan
The cost management plan provides the guidance for the project team as to how project costs will be planned, structured and controlled. This example is from a group project in PMGT 501 Fundamentals of Project Management, written by Jeremy Curbey, Jay Kinser, and Charles Sutherland.