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d680c458d3 What Is Project Management? ^ Samuel90 (2013-01-25). Controlling Costs Costs need to be controlled carefully throughout the process to make sure the budget doesn't get out of control and end up overrunning your plans. Chapter 7 - Planning Contract Management This process determines which products or services a project will need to procure from an external source. Citeulike.org. The importance of managing cash flow throughout the project. How the spend is monitored and changes to the cost baseline are managed. Not only is the project budget a helpful planning tool, but it also may be necessary before getting permission to start the project. You don't want to make it part way through a project only to realize that the money you need isn't going to be available on time - or at all.
A good project budget will help you make key decisions with respect to the project schedule and resource allocation constraints. Effective monitoring requires a focus on the actual and forecast consumption of elements such as people's time, materials, equipment, facilities, etc. There are generally four steps that are used in the project cost management process. Chapter 9 - Managing Supplier Relationships This is the process of managing relationships with sellers, monitoring contract performance, taking corrective actions if required, and controlling change. You will learn: How to approximate the monetary cost of a project. Why a structured approach to buying in products and services is essential. Allocative efficiency Earned value management Project management Project planning Resource planning (disambiguation) . Method Not Allowed .. Cost management procedures are used to create a budget, and to monitor performance relative to that budget. This includes watching to see where actual cost has varied from estimated cost.