This portfolio work project, a budget analysis and cost estimating artifact, is based on your selected business or IT project. You may choose to base your assessment on the Revive LLC case study for the development of a new online employee orientation module, or you may select a company/scenario of your own choosing. Both human resources (HR) and information technology (IT) employees, as well as contractors, will be used in this project.
PMI has provided a definition of the Cost management plan in the 7th edition of the PMBOK® Guide and is defined as this plan is a component of a project or program management plan that describes how costs will be planned, structured, and controlled (Project Management Institute, 2021, p. 218). Also, consideration needs to be taken with respect to project costs and stakeholder differences. Financial performance techniques provide both internal and external measurement capabilities that allow for decision-making, financial analysis, and mitigation strategies.
Effective cost management involves establishing a cost baseline for measuring project performance. Establishing the project baseline is like establishing a point of reference. Whatever that point of reference, it will become the baseline against which project performance will be measured. This cost baseline becomes the basis for more advanced techniques, such as earned value management (EVM).
Project cost management includes planning for the resources needed: the people, equipment, and materials. With the use of proven estimating techniques, an estimate is presented to the project sponsor and management for approval. Upon approval, the cost estimate becomes the official budget for the project. As the project goes through the normal project life cycle, cost control techniques track and monitor the budget, which allows you to make sure you will not incur a budget overrun.
Reference
Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) Seventh Edition and The Standard for Project Management. Newtown Square. PA. 2021.
Authentic Experience Project Components
You will do what is necessary to have the project succeed this time around. Using the Project Revive LLC scenario or a project of your choosing, you will:
