Cost Management for Engineers-Cost Terms

Cost Management for Engineers-Cost Terms

Cost management is the process of planning and controlling the budget of a business

CostHow to make S-curve without cost or resources in Primavera P6. Read more ... » managementProject Management from Directory. Read more ... » Terms:

Value Engineering: Value engineering is a balance between cost and qualityWhich is cheaper, cost of quality or cost of poor quality?. Read more ... » in order to achieve the desired function. Value Engineering (VE), also called:

•           Value Management

•           Value Analysis

•           Target costing


 


Cost Management:

It is a powerful systematic methodology to optimize the cost performance &overcome the cost constraints

Cash flowproject management plan from Planning Engineer Point of View. Read more ... » analysis determines the estimated annual costsCost and Costing. Read more ... » and benefits for a projectCost and Costing. Read more ... » and the resulting annual cash flow.

Cost budgeting: Allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.

Cost control: Controlling changes to the project budget.

Cost estimating: Developing an approximation or estimate of the costs of the resourcesHow to make S-curve without cost or resources in Primavera P6. Read more ... » needed to complete a project.

Direct costsCost and Costing. Read more ... » are costs that can be directly related to producing the products and services of the project.

Indirect costs are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project.

Life cycle costing considers the total cost of ownership, or development plus support costs, for a project.

Profits are revenues minus expenses.

A cost management planPMP Road Map template. Read more ... » is a document that describes how the organization will manage cost variances on the project.

Cost budgeting involves allocating the project cost estimate to individual work items over timeCost and Costing. Read more ... ». and there are plenty of Cost Management Software which applying this concept.


 

DefineL1-Create,Define Activities and WBS from Bill of Quantities BOQ. Read more ... » the Term Cost Centre:

AC                   Actual CostEVM earned value management. Read more ... »

ACWP             ActualHow to monitor budgeted and actual cost in Primavera p6.. Read more ... » Cost of Work Performed

ADM                Arrow Diagramming MethodProject Management Acronyms. Read more ... »

AF                   Actual Finish date

AOA                Activity-on-Arrow

AON                Activity-on-Node

AS                   Actual Start date

BACProject Management General Definitions. Read more ... »                 Budget at CompletionProject Management General Definitions. Read more ... »

BCWP             BudgetedHow to monitor budgeted and actual cost in Primavera p6.. Read more ... » Cost of Work Performed

BCWS             Budgeted Cost of Work Scheduled

BOM                BillL1-Create,Define Activities and WBS from Bill of Quantities BOQ. Read more ... » Of Materials

CAP                 Control AccountProject Management Acronyms. Read more ... » Plan

COQ                Cost of QualityWhich is cheaper, cost of quality or cost of poor quality?. Read more ... »

CPI                  Cost Performance IndexEVM earned value management. Read more ... »

CPM                Critical Path Method

CV                   Cost VarianceEVM earned value management. Read more ... »

CWBS             Contract Work Breakdown StructureProject Procurement Terms and Definitions. Read more ... »

DD                   Data Date

EAC                 Estimate at Completion

EF                   Early Finish date

ES                   Early Start date

ETC                 Estimate to Complete

EV                   Earned ValueEVM earned value management. Read more ... »

EVM                Earned Value ManagementEVM earned value management. Read more ... »

EVT                 Earned Value Technique

FF                    Finish-to-Finish

FF                    Free FloatProject Management General Definitions. Read more ... »

FMEA              Failure Mode and Effect Analysis

FS                   Finish-to-Start

LF                    Late Finish date

LS                    Late Start date

OBS                Organizational Breakdown Structure

OD                   Original Duration

PC                   Percent CompleteClaim Digger Baseline Schedule V.S Revised Schedule Comparison Tool. Read more ... »

PDM                Precedence Diagramming Method

PF                   Planned Finish date

PM                   Project ManagementInitiating a project. Read more ... »     or   Project ManagerPROJECT CLOSE-OUT Template. Read more ... »

PMBOK®          Project Management Body of Knowledge

PMIS               Project Management Information System

PMOComau case study (PMO creation). Read more ... »                Program Management OfficeProject Management Acronyms. Read more ... »    or       Project Management OfficeComau case study (PMO creation). Read more ... »

PMPProject Management from Directory. Read more ... »®               Project Management ProfessionalConstruction Project Manager Job Description. Read more ... »

PS                   Planned Start date

PSWBS           Project Summary Work BreakdownProject Procurement Terms and Definitions. Read more ... » Structure

PV                   Planned ValueEVM earned value management. Read more ... »

QA                   Quality Assurance

QC                   Quality Control

RAM                Responsibility Assignment Matrix

RBS                 Resource Breakdown Structure    or      RiskProject Risk Terms and Definitions. Read more ... » Breakdown Structure

RD                   Remaining Duration

RFP                 Request for Proposal

RFQ                Request for Quotation

SF                   Scheduled Finish date

SF                   Start-to-Finish

SOW               Statement of Work

SPI                  Schedule Performance IndexEVM earned value management. Read more ... »

SS                   Scheduled Start date

SS                   Start-to-Start

SV                   Schedule VarianceEVM earned value management. Read more ... »

SWOT             Strengths, Weaknesses, Opportunities, and Threats

TC                   Target Completion date

TF                    Target Finish date

TF                    Total FloatProject Management General Definitions. Read more ... »

T&M                Time and Material

TQM                Total Quality Management

TS                   Target Start date

VE                   Value Engineering

WBSL1-Create,Define Activities and WBS from Bill of Quantities BOQ. Read more ... »                Work Breakdown StructureL1-Create,Define Activities and WBS from Bill of Quantities BOQ. Read more ... »

 

You should be aware of the above mentioned Cost terms in order to understand the Cost in Project Management.


 

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Comments (2)

  • Anonymous Reply

    Project time and cost management is really important for businesses these days. I had been using Replicon's simple to use cloud based project time and cost – http://www.replicon.com/time-cost application.

    Jan 8, 2013 at 5:38 pm
  • Jam Afzal Reply

    Thanx

    Jan 9, 2013 at 5:31 pm

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