MGMT-6056 Lecture 3: module 3
Document Summary
The process that establishes the policies, procedures and documentation for planning, managing, expending and controlling project costs. The cost management plan can establish the following. Units of measure: units for labour (hours, days, weeks), how many hours in a work day / week, metric or imperial for quantity measure, currency. Level of precision: degree to which activity cost estimates will be rounded up or down (e. g cad. 49 to cad, or cad . 59 to ) Level of accuracy: the acceptable range used in determining realistic cost estimates (e. g. , +/-10%) Organizational procedure links: how the wbs will be linked to control accounts. Control thresholds: what agreed upon threshold indicates action needs to be taken (e. g. +/- 10% of budget) Rules of performance measurement: level in the wbs which measurement of control accounts will be performed, measurement techniques used (weighted milestones, fixed- formula, percent complete), specify evm equations for calculating eacs. Reporting formats: format and frequency for the various cost reports.
