Plan Cost Management

Plan Cost Management

Plan cost management is the first process of the cost management knowledge area. This process documents the answer to the following questions.

• How the estimation of the planned activities will be performed?
• How the budget will be prepared?
• What are the different types of costs that should be part of the cost baseline?
• What will be the cost tolerance?
• How to determine the budget to manage risks?
• The scope of cost estimation, should we estimate the cost of the entire project or of a part of the project?
• What are tools, techniques, templates, reference estimation sources required for estimation?
• What are the metrics to report the cost performance of the project?
• How to monitor & control the cost (process, system, tools, people, training, etc)?
• Accounting code allocated by finance department for billing to customer or to make payments to vendor partners.

Plan Cost Management (Process Summary)

This table is based on PMBOK 6th Edition of PMI

Inputs

• Enterprise Environmental Factors
• Organizational Process Assets
• Project Charter
• Project Management Plan

Tools & Techniques

• Data Analysis
• Meetings
• Expert Judgement

Outputs

• Cost Management Plan

PMBOK 6th Edition Process Summary Table