Cost control with statistic tools
From apppm
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==Introduction== | ==Introduction== | ||
| − | Cost control is one of the major parts in the cost management in '''Project''' management. Cost control is the process of monitoring project status to update project costs and managing changes to the cost baseline. The main benefit of this process is that the cost baseline is maintained throughout the project. The appropriateness of this process is that the cost baseline is maintained throughout the project. | + | Cost control is one of the major parts in the cost management in '''Project''' management. Cost control is the process of monitoring project status to update project costs and managing changes to the cost baseline. The main benefit of this process is that the cost baseline is maintained throughout the project. The appropriateness of this process is that the cost baseline is maintained throughout the project. <ref name="PMI"> |
| − | The major component of the Project cost control includes: | + | The major component of the Project cost control includes <ref name="PMI">: |
*Influencing the factors that create changes to the authorized cost baseline; | *Influencing the factors that create changes to the authorized cost baseline; | ||
*Ensuring that all change requests are acted on in a timely manner; | *Ensuring that all change requests are acted on in a timely manner; | ||
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*Bringing expected cost overruns within acceptable limits. | *Bringing expected cost overruns within acceptable limits. | ||
| − | ==Input | + | ==Input<ref name="PMI">== |
The input of the cost control includes following parts: | The input of the cost control includes following parts: | ||
*Project management plan, which includes cost management plan, cost baseline and performance measurement baseline. The cost management plan indicates how the project cost will be managed and controlled. The cost baseline is applied as the comparison with actual results to determine if a change, corrective action, or preventive action is necessary. Similarly, performance measurement baseline is compared to actual results to determine if a change, corrective action, or preventive action is necessary. | *Project management plan, which includes cost management plan, cost baseline and performance measurement baseline. The cost management plan indicates how the project cost will be managed and controlled. The cost baseline is applied as the comparison with actual results to determine if a change, corrective action, or preventive action is necessary. Similarly, performance measurement baseline is compared to actual results to determine if a change, corrective action, or preventive action is necessary. | ||
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| − | + | ==References== | |
| − | + | <references> | |
| − | + | <ref name="PMI">Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide) 6th Edition (2017) | |
| − | + | <ref name="EVM">Project Management Institute(PMI). (2005) "Practice Standard for Earned Value Management" | |
| − | + | <ref name="2013">Aliverdi, R., Moslemi Naeni, L., & Salehipour, A. (2013). Monitoring project duration and cost in a construction project by applying statistical quality control charts. International Journal of Project Management, 31(3), 411–423. https://doi.org/10.1016/j.ijproman.2012.08.005 | |
| − | + | <ref name="2019">Hadian, H., & Rahimifard, A. (2019). Multivariate statistical control chart and process capability indices for simultaneous monitoring of project duration and cost. Computers and Industrial Engineering, 130(March), 788–797. https://doi.org/10.1016/j.cie.2019.03.021 | |
| + | </references> | ||
Revision as of 04:01, 18 February 2021
Introduction
Cost control is one of the major parts in the cost management in Project management. Cost control is the process of monitoring project status to update project costs and managing changes to the cost baseline. The main benefit of this process is that the cost baseline is maintained throughout the project. The appropriateness of this process is that the cost baseline is maintained throughout the project. Cite error: Closing </ref> missing for <ref> tag
