5 Outputs Of Control Cost For Projects
In my previous articles, I have talked about some of the tools and techniques that you need to know when planning to control costs for projects. In this article, I want to look at some of the outputs of controlling costs for projects. Follow me as we look at that on this article.
Now the outputs…
#1 Work Performance Information
Work Performance Information includes information on how the project work is performing compared to the cost baseline for the project. Variance in the work performed and the cost of the work is evaluated at the work package level and control account level.
For projects using Earned Value Analysis, CPI, CV, EAC, VAC and TCPI are documented for inclusion in work performance reports for the project.
#2 Cost baseline
The cost baseline is another tool that is needed when you need to control costs for your project. With the cost baseline, you can set the minimum amount that you are going to spend on any task that you have outlined for the project. This will ensure that you are not spending more than what is expected for your deliverables. It will also assist you in carrying stakeholders along as you move on with the project.
#3 Change Requests
This has to do with the analysis of project performance may result in a change request to the cost and schedule baselines or other components of the project management plan. Change requests are processed for review and disposition through the Perform Integrated Change Control process.
#4 Project Management Plan Updates
Any change to the project management plan goes though the organization’s change control process via a change request. Components that may require a change request for the project management plan include:
Cost Management Plan: Changes to the cost management plan, such as changes to control thresholds or specified levels of accuracy required in managing the project’s costs, are incorporated in response to feedback from relevant stakeholders.
Cost baselines: Changes to the cost baseline are incorporated in response to approved changes in scope, resources, or cost estimates. In some cases, cost variances can be so severe that a revised cost baseline is needed to provide a realistic basis for performance measurement.
Performance Measurement baseline: Changes to the performance measurement baseline are incorporated in response to approved changes in scope, schedule performance, or cost estimates. In some cases, the performance variances can be so severe that a change request is put forth to revise the performance measurement baseline to provide a realistic basis for performance measurement.
#5 Project Document Updates
Project documents that may be updated as a result of carrying on this process include:
Assumption log: Cost performance may indicate the need to revise assumptions on resource productivity and any other factors influencing cost performance for the project.
Basis of estimate: Cost performance may also need to be updated to reflect the actual cost efficiency for the project.
Cost estimates: Cost estimates may need to be updated to reflect the actual cost efficiency for the project.
Lesson learned register: The lesson learned register can be updated with techniques that were effective in maintaining the budget, variance analysis, earned value analysis, , forecasting and corrective actions that were used to respond to cost variances.
Risk Register: The risk register may be updated if the cost variances have crossed, or are likely to cross, the cost threshold.
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