Plan Cost Management

Plan Cost Management

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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)

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This table is based on PMBOK 6th Edition of PMI

Inputs

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

Tools & Techniques

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• Data Analysis
• Meetings
• Expert Judgement

Outputs

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• Cost Management Plan

PMBOK 6th Edition Process Summary Table