Estimated reading time: 4 minutes
The foundation of project management involves managing costs and scheduling. They are strategic elements to ensure efficiency and profitability, and successful integration of project schedule and cost will ensure project success. Scheduling projects allows your projects to be completed in a timely, quality, and financially responsible manner. To keep projects on track, set realistic time frames, assign resources appropriately and manage quality to decrease product errors.
80% of project costs and schedules are underestimated during the planning process. The two most common factors that lead to project delay and increased in project costs include design errors and scope change.
When starting a new project, estimating project costs involve setting parameters, which provides cost and time frameworks for the team to adhere to. Challenges of budgeting include sticking to the project’s original budget to ensure that the project remains profitable.
A project’s success is based on its profitability, and effective scheduling and cost controls would help to achieve that. As proper planning allows minimal materials, supplies, labour and time costs to be used, it ensures optimal profits and contributes to the project’s success. It also involves quality assurance processes in place.
Effective project scheduling ensures that the deadlines set are met. When you are able to meet client deadlines, it lends credibility to your name and no additional costs are incurred during the additional days of the initial project schedule.
As companies engage in multiple projects or production processes at once, a delay in project scheduling for example, results in an opportunity cost. If a project team finishes behind schedule on one product, the next project may get delayed. Additionally, projects often move through multiple stages and work teams. If one team is slow, it creates a bottleneck for the next stage and team. This inefficiency creates unnecessary costs.
Interested to read other articles? Check out: 10 Skills to be a Successful International Project Manager in 2018
Managing Project Costs & Budgets is a training course designed for delegates to become familiar with the integration of cost scheduling into project management processes and procedures and understand the importance throughout a project lifecycle of the central role and importance of managing costs. Delegates will learn how to utilise such techniques as the Work Breakdown Structure (WBS); the Work Package and the Cost Breakdown Structure (CBS).
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