7.1 Plan Cost Management
Process Definition
Planning cost management results in creating a plan for developing, controlling and closing the project budget. It is important to note that the plan is about how the budget will be managed, not the actual budget itself. It should clearly identify the tools that should be used, such as Microsoft Excel or an enterprise management system, recommended templates, the configuration management and control processes that should be followed, reporting requirements and closure process.
Process Assessment
A cost management plan has never been useful for me. My organizations usually have existing processes embedded into the culture and followed by teams. Costing is done in the company ERP system, and progress reporting is done monthly using Earned Value Management. I've never seen a need for this process.
Figure 15. Plan Cost Management: Inputs, Tools and Techniques, and Outputs. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th Edition" by Project Management Institute, 2013, p. 195. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.
- Fence Construction Project Charter: Example of a project charter, developed for a project to build a backyard privacy fence. It is an input to the "Develop Cost Management Plan" process, providing a summary budget as a starting point for the cost development processes.
- Expert Judgment: This short essay discusses tools and techniques for developing a cost management plan.
- Cost Management Plan: Example of a time management plan, the output for this process, for a border security project. It identifies the tools that will be used for the budget processes, the level of detail expected in calculations and reporting, control thresholds, and reporting formats.