MEHRAN UNIVERSITY OF ENGINEERING

AND TECHNOLOGY, JAMSHORO

Name: Mohammmad Ahmed

Khan
Roll No: F16PG123
Subject:Project Planning And
Management
Teacher: Engr: Abdul Qadir
Sheikh
NTRODUCTION TO PROJECT COST
MANAGEMENT
 A proccess that which is based on ,
managing,estimating, budgeting ,
financing,planning , funding, , and
controlling costs so we must complete
project within the approved budget.
Project Cost Management Proccess

 Estimate cost : A proccess in which we

develop an approximation for the
monetaring resources needed for finalized
project activties.
 Determine Budget :In this we determine
the cost basedline against which project
performance can be monitered and
controlled
 Control Costs : This will allow the project
managers to manage the changes in the
cost baseline if present.
KEY TERMS

 Earned Value Management (EVM)

A project management technique for
measuring project performance and
progress based on comparison of worked
performed and work planned.
 Life Cycle Costing
The concept of looking at cost over the
entire life of the product, not just the project
to create the product.
 Value Analysis( Value Engineering )
The concept that focuses on finding less
costly way to the same work.
 Cost Risk
That cost which is related to risks.
TYPES OF COSTS

 Varribale costs : Cost that change with

amount of work.
 Fixed Costs: Cost that do not change with
amount of work.
 Direct Costs: Costs directly attributable to
the work on project.
 Indirect Cost: Overhead items or costs
incurred for the benefit of more than one
project.