Pricing Process

This activity schedules the development of the work breakdown structure and provides management with two of the three operational tools necessary for the control of a system or project. The development of these two tools is normally the responsibility of the program office with input from the functional units.

The integration of the functional unit into the project environment or system occurs through the pricing-out of the work breakdown structure. The total program costs obtained by pricing out the activities over the scheduled period of performance provide management with the third tool necessary to successfully manage the project. During the pricing activities, the functional units have the option of consulting program management about possible changes in the activity schedules and work breakdown structure.

The work breakdown structure and activity schedules are priced out through the lowest pricing units of the company. It is the responsibility of these pricing units, whether they be sections, departments, or divisions, to provide accurate and meaningful cost data (based on historical standards, if possible). All information is priced out at the lowest level of per-

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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