Page 129 -

7 - PROJECT COST MANAGEMENT

The PMBOK Guide states that the ability to influence costs is greatest at the early stages of the project, making
®
early scope definition of a project critical to estimating and managing costs. A stable software architecture and
enabling technologies (such as configuration management, quality assurance, and testing tools) have a strong influence
on software cost—especially on the cost of late changes. Flexible or scalable architecture, continuous testing, and
enabling technologies can also reduce the long-term cost of using, maintaining, and supporting a software product.

Project Cost
Management Overview

7.1 Plan Cost
Management 7.2 Estimate Costs 7.3 Determine Budget
.1 Inputs .1 Inputs .1 Inputs
.1 Project management plan .1 Cost management plan .1 Cost management plan
.2 Project charter .2 Human resource management .2 Scope baseline
.3 Enterprise environmental plan .3 Activity cost estimates
factors .3 Scope baseline .4 Basis of estimates
.4 Organizational process assets .4 Project schedule .5 Project schedule
.5 Risk register .6 Resource calendars
2. Tools & Techniques .6 Enterprise environmental .7 Risk register
.1 Expert judgment factors .8 Agreements
.2 Analytical techniques .7 Organizational process assets .9 Organizational process assets
.3 Meetings .8 Software size and complexity
.9 Rate of work .2 Tools & Techniques
.3 Outputs .1 Cost aggregation
.1 Cost management plan 2. Tools & Techniques .2 Reserve analysis
.2 Accuracy of estimate .1 Expert judgment .3 Expert judgment
.3 Units of measure .2 Analogous estimating .4 Historical relationships
.4 Cost performance .3 Parametric estimating .5 Funding limit reconciliation
measurement method .4 Bottom-up estimating
.5 Three-point estimating .3 Outputs
.6 Reserve analysis .1 Cost baseline
.7 Cost of quality .2 Project funding requirements
.8 Project management software .3 Project documents updates
.9 Vendor bid analysis
7.4 Control Costs
.10 Group decision-making
techniques
.1 Inputs .11 Time-boxed estimating
.1 Project management plan .12 Function point and source
.2 Project funding requirements lines of code estimating
.3 Work performance data .13 Story point and use case point
.4 Organizational process assets estimating
.14 Estimating reusable code
.2 Tools & Techniques effort
.1 Earned value management .15 Price-to-win
.2 Forecasting
.3 To-complete performance .3 Outputs
index (TCPI) .1 Activity cost estimates
.4 Performance reviews .2 Basis of estimates
.5 Project management software .3 Project documents updates
.6 Reserve analysis
.7 Management Metrics
.3 Outputs
.1 Work performance
information
.2 Cost forecasts
.3 Change requests
.4 Project management plan
updates
.5 Project documents updates
.6 Organizational process assets
updates

Figure 7-1. Project Cost Management Overview

120 ©2013 Project Management Institute. Software Extension to the PMBOK Guide Fifth Edition
®