How to Deliver Effective Project Cost Management

The video tutorial covers project cost management, emphasizing its importance in project success. It outlines the processes of planning, estimating, budgeting, and controlling costs. The tutorial explains how to create a cost management plan, handle uncertainties, and use tools for effective cost management. It also discusses the role of governance and the need to tailor approaches to project specifics.

What are the two main disciplines in project cost management?

• Estimating and budgeting, and monitoring and controlling

• Scheduling and resource allocation

• Planning and executing

• Risk management and quality control

Why is a budget essential for a project?

• To justify project viability and secure funding

• To increase project complexity

• To reduce the number of stakeholders

• To eliminate the need for a business case

What is a key component of a project budget?

• Team building activities

• Stakeholder engagement

• Direct and indirect costs

• Project milestones

What role does a Senior Financial Officer play in project governance?

• Handles stakeholder communication

• Oversees financial accountability

• Manages project timelines

• Leads the project team

What is the purpose of project gateways or stage gates?

• To conduct team meetings

• To assign project roles

• To finalize project deliverables

• To validate cost control and make recommendations

Why might spreadsheets be insufficient for large projects?

• They are not compatible with project management software

• They are too expensive

• They can contain errors and lack validation

• They require specialized training

What is Earned Value Management used for?

• To simplify project scheduling

• To support project cost management

• To improve team morale

• To enhance stakeholder communication

How should project cost management be tailored?

• According to team preferences

• By ignoring organizational culture

• Based on project scale and management approach

• By following a fixed template

What is a common cause of project cost overruns?

• Overly simple project plans

• Lack of rigorous cost management

• Too many team members

• Excessive stakeholder involvement

What is the importance of a project management information system?

• To automate all project tasks

• To replace project managers

• To eliminate the need for a budget

• To gather, store, and analyze project cost information