Project
management

Consider a Project Cost Management. It is very important to understand and take into account all the nuances of financial part of the project planned to properly manage the cost of the project. So, what is - to manage cost the project?

These are the methods and strategies, it is the principles necessary to ensure The project will be executed within your financial limits. Project Cost Management includes the following:

resource Planning - That is, what resources and what quantities are needed to complete the project.

Estimate of the cost-estimate the value of each resource (the salary of specialists the cost of materials, equipment) required to perform work of the project.

The development budget- The distribution of the estimated costs of parts of the project.

cost Control- Management of change budget.

Project cost management is one of the most important steps in managing the cost, timing and requirements for the subject area. Compliance with the scheduled dates, requirements and budget - allows you to complete the project in time leaving the content and expectations of the customer and the team of artists.

The main objective of cost of the project is to complete it in within the approved budget. The cost estimates set the cost of the project at various stages of project development. Predict the estimated costs to define the problem in time valuation, cost control and profitability can be an expert on the value or estimates based on available data certain stage of development of the project.

For the above can all be reduced to processes that were involved in the planning, formulation and budget development, control the various costs and to ensure completion of the project, and, within budget, united in the management of the project cost. We describe these processes.

  • estimation of cost - The definition of the approximate cost of resources necessary to perform the project.
  • The development budget expenditures - the sum of cost estimates, work, associated with the flow and formation of a plan to manage the cost of the project.
  • Cost management - the impact of the events that contribute to variations in cost and change management, project cost.

These three processes can communicate with each other. In each of the processes may be involved as one man, and the whole company. In the course of the creation of any project, at least one of these processes necessarily involved. In this paper valuation, budgeting and cost management costs as provided random, discrete values ​​with clear and intuitive interface, but in practice they can overlap and interact with each other.

Virtually all cost estimation is carried out in accordance with one or more combinations of the following basic principles:

production function. In microeconomics, the relationship between the output process and the necessary resource is called a production function. In construction, for example, the production function can be expressed as ratio of the volume of construction and factors of production such as labor and investments. The production function relates the amount or production with different materials, as well as the work of artists materials and equipments. For example, the volume of N can be obtained as function of various factors, using mathematical or statistical methods take the input factors x 1, x 2, ..., x n. Thus, for a specified amount production, we can try to find a set of values ​​of input factors to calculate minimize the cost. The relationship between construction project and working time is an example of the construction of a production function.
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