In the overall study the thing which strike me and I found to be of utmost importance was the topic project cost management which covers all the activities needed to complete a project. There are various small functions which are under the umbrella of project cost management. The major concern of project cost management is with the cost of the resources and is of vital importance if the project needs to complete on time. The PCM also takes into consideration the impact of project decision on the cost of utilization the project product. Hence, the PCM has set a bigger view which can be said to be the life-cycle costing (Cattani et. al, 2011). It can be used in many areas which enable proper predicting as well as performance. Project cost management begins after a project is chosen by consideration of the pros and cons. In this scenario it needs to be noted that a project can get a big success only when this method is utilized in an effective manner (Stellman & Greene, 2005). Here the role of a project manager also comes to the forefront.
Role of Project Manager
A project manager is entrusted with the role of managing costs and he does so by taking a strategic approach (Lewis, 2006). All the items which influence costs are taken into consideration. The relevant as well as important cost information is studied and the pre determined results are studied. From the study a clear concept has been provided on the role of a project and this I think will go a long way and provide needful help in the long run. When it comes to the role of a project manager it can be said that he is all in all and play diversified role in the entire PCM. This will even help in future and during my course of activity. The role and skills of the project manager can be a big asset to the entire organization because the role is not limited to any particular skill (Lock, 2007). The project manager deals with the cost benefit analysis and estimates the techniques which should be used in the cost. Project budgeting, project monitoring, cost analysis are some of the useful skills which is possessed by the project manager and helps in meeting the targets (David & Roland, 2006). The project manager also looks after the cost estimation as well as budgetary control which help in the easy formulation of plans as well as policies. Hence, this study has vastly enriched my knowledge on project control management and the role of a project manager which is essential to be present before joining any organization.
Technique of PCM
Project cost management can be said to be a method or a technique which measures cost as well as productivity through the complete life cycle of enterprise level projects. PCM goes beyond many individual function of project management which includes estimation, job control, and data collection from the field, scheduling, accounting and design (Martin, 2002). Starting from the concept of estimating which is one of the potent tools in PCM, real historical data is being used to project all the plans with accuracy (Dinsmore, 2005). As the project progress, job control utilizes data with the information which reported from the field so that cost and production can be measured with ease and flexibility. As a matter of fact project cost management is concerned with the utilization of the resources which are needed to complete the project activities.
Process of PCM
Project cost management contains the processes that are needed to complete the project with the concerned budget. The following important processes which were discussed and deemed to be of major importance in the study are:
Resource planning –
here the resources are determined such as people, equipment, materials and what quantities should be used so that the project activities can be performed. This step enables proper and sound management of the resources so that optimum utilization can be seen without any error.
Cost estimating –
an approximation is estimated of the costs as well as the resources which are needed to complete the activities of the project. This step teaches how the fact that how important is the cost estimation process in the light of changing scenario and can be said to be a vital factor in the cost management. Cost estimation gives a proper knowledge that where the work is heading and can be used to know the difference too with the help of estimation.
Cost Budgeting –
the overall cost estimate is allocated to single work items. Cost budgeting enables proper allocation of the cost estimate to each individual item which provides clarity and then the work can be done in a proper manner.
Cost control –
changes are controlled to the project budget. In the light of changing circumstances there appears to be situation when changes happen and the project may go for a set-back but with the help of cost control the costs can be minimized and control to a cast extent which can remove the difficulties (Phillips, 2003). It can help in big time as the cost always fluctuate and if there is proper control on the entire budget with the help of project manager then it can lead to positive result for the entire organization.
Hence, it can be said from the study that a project manager is completely responsible for the success or the failure of the project which is undertaken. The first and foremost responsibility is to define the project and then prepare the plan. If the scope is not definite or clear then the project will be said to be guided on a very poor line of action on the contrary if the project performs exceedingly well then the credit goes to the project manager. Project cost management is in itself a vast topic and from this topic it is clear that the project cost management sets the stage for other themes such as cost management, determination of budget, cost estimation as well as controlling of costs. An entire big team is available under the project manager so that proper aid is available to attain the aims of the organization.
Cattani, G., Ferriani, S., Frederiksen, L. and Florian, T. (2011) Project-Based Organizing and Strategic Management, Advances in Strategic Management, Emerald, ISBN 1780521936.
David I. Cleland, Roland Gareis (2006). Global Project Management Handbook. The evolution of project management. McGraw-Hill
Dinsmore, Paul C (2005) The right projects done right! .ISBN 0-7879-7113-8.
Phillips Joseph (2003). PMP Project Management Professional Study Guide. McGraw-Hill
Lewis R. Ireland (2006) Project Management. McGraw-Hill Professional, ISBN 0-07-147160-X. p.110.
Lock Dennis (2007) Project Management. Gower Publishing, Ltd., ISBN 0-566-08772-3
Martin Stevens (2002). Project Management Pathways. Association for Project Management. APM Publishing Limited,
Stellman, Andrew; Greene, Jennifer (2005). Applied Software Project Management. O'Reilly Media