Manage Project Costs Unit Guide Diploma of Project

Manage Project Costs Unit Guide Diploma of Project Management 17872 Qualification Code BSB 51507 Unit Code BSBPMG 504 A Manage Project Costs

Units of Study – Diploma Units in the Diploma of Project Management BSBPMG 501 A Manage Application of Project Integrative Processes BSBPMG 502 A Manage Project Scope BSBPMG 503 A Manage Project Time BSBPMG 504 A Manage Project Costs BSBPMG 505 A Manage Project Quality BSBPMG 506 A Manage Project Human Resources BSBPMG 507 A Manage Project Communication BSBPMG 508 A Manage Project Risk BSBPMG 509 A Manage Project Procurement BSBPMG 504 A Manage Project Costs

Manage Project Costs On completion of this unit you will – – be able to identify, analyse and refine project costs to produce a project budget – understand how to use a project budget as the principle mechanism to control project costs • This unit is Ungraded which means that you will be found Competent or Not Yet Competent based on the completion of the assessment activities and the evidence of competency provided. BSBPMG 504 A Manage Project Costs

Elements of Competency • Each unit of study is composed of elements of competency • Manage Project Costs comprises 3 elements of competency – 1. Determine project costs 2. Monitor and control project costs 3. Conduct financial completion activities • Elements of competency are further broken down into performance criteria, these can be found on the next slides BSBPMG 504 A Manage Project Costs

1. Determine Project Costs 1. Resource requirements for individual tasks are determined, with input from stakeholders and guidance of others 2. Project costs are estimated to enable budgets to be developed and agreed cost management processes implemented 3. Within delegated authority, a cost management plan is developed and implemented to ensure clarity of understanding and ongoing management of project finances BSBPMG 504 A Manage Project Costs

2. Monitor and Control Project Costs 1. Agreed financial management processes and procedures are implemented to monitor actual expenditure and to control costs 2. Cost analysis methods and tools are selected and used to identify cost variations, evaluate options and recommend actions to a higher project authority 3. Agreed actions are implemented, monitored and modified to maintain financial and overall project objectives throughout the project life cycle BSBPMG 504 A Manage Project Costs

3. Conduct Financial Completion Activities 1. Appropriate activities are conducted to signify financial completion 2. Review of project outcomes is undertaken using available records and information to determine the effectiveness of cost management processes and procedures 3. Cost management issues and recommended improvements are identified BSBPMG 504 A Manage Project Costs

Associated Readings • Mandatory – • PMBOK Chapter 7 • Recommended – • Diploma of Project Management Skills Kit – Manage Project Costs • Learning Guide 2 – Develop Project Plans, pages 7 and 19 • Learning Guide 3 – Administer & Monitor Project, pages 8 to 12 • Learning Guide 4 – Finalise Project, page 2, 3 and 6 • Learning Guide 5 – Review project, pages 2 to 5 BSBPMG 504 A Manage Project Costs

Best wishes for your studies Crows Nest TAFE and the Business and Commerce Business Line of the Northern Sydney Institute wish you success in your studies! BSBPMG 504 A Manage Project Costs