Project Costs

PROJECT LIFE-CYCLE PHASES FIGURE 15-2. Cost reduction analysis.

The second purpose of control is decision-making. Three useful reports are required by management in order to make effective and timely decisions:

• The project plan, schedule, and budget prepared during the planning phase

• A detailed comparison between resources expended to date and those predetermined. This includes an estimate of the work remaining and the impact on activity completion.

• A projection of resources to be expended through program completion These reports, supplied to the managers and the doers, provide three useful results:

• Feedback to management, the planners, and the doers

• Identification of any major deviations from the current program plan, schedule, or budget

• The opportunity to initiate contingency planning early enough that cost, performance, and time requirements can undergo corrected action without loss of resources

These reports provide management with the opportunity to minimize downstream changes by making proper corrections here and now. As shown in Figures 15-2 and 15-3, cost reductions are more available in the early project phases, but are reduced as we go



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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