Create a budget analysis report of the current failed project and a project estimation report for the turnaround project.
This portfolio work project, a budget analysis and cost estimating artifact, is based on the Revive LLC case study for the development of a new online employee orientation module. Both human resources (HR) and information technology (IT) employees, as well as contractors, will be used in this project.
Cost management is defined as “primarily concerned with the cost of the resources needed to complete the project activities” (Project Management Institute, 2017, p. 233.). Also, consideration needs to be taken with respect to project costs and stakeholder differences. Financial performance techniques provide both internal and external measurement capabilities that allow for decision making, financial analysis, and mitigation strategies.
Effective cost management involves establishing a cost baseline for measuring project performance. Establishing the project baseline is like establishing a point of reference. Whatever that point of reference, it will become the baseline against which project performance will be measured. This cost baseline becomes the basis for more advanced techniques, such as earned value management (EVM).
Project cost management includes planning for the resources needed: the people, equipment, and materials. With the use of proven estimating techniques, an estimate is presented to the project sponsor and management for approval. Upon approval, the cost estimate becomes the official budget for the project. As the project goes through the normal project lifecycle, cost control techniques track and monitor the budget, which allow you to make sure you will not incur a budget overrun.
Project Management Institute. Guide to the Project Management Body of Knowledge (PMBOK® Guide) — Sixth Edition and Agile Practice Guide. Newtown Square. PA. 2017.
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