Control Costs Process

Posted on June 9, 2009 by

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The Control Costs process is one of the 42 project management processes described in the fourth edition PMBOK®. It’s one of the three Cost knowledge area processes, and one of the ten Monitoring and Controlling processes. The primary purpose of this process is to monitor the budget and manage any changes made to the cost baseline. The Cost Performance Baseline and Cost Management Plan can be found in the Project Management Plan, which is used to guide this process. Project Funding Requirements and Work Performance Information are additional inputs. There are many tools available to manage costs, such as Earned Value Management, Forecasting, To-Complete Performance Index, Performance Reviews, Variance Analysis, and Project Management Software. The tools enable the project manager to calculate how close spending matches the budget, and how much more funding is needed. This results in Work Performance Measurements and Budget Forecasts that can be used to plan the remainder of the project. As Change Requests are approved through the Perform Integrated Change Control process and implemented, there may be updates to the Organizational Process Assets, Project Management Plan, and Project Documents. Also see the earlier postings of Earned Value Management – Step 1 (posted February 26, 2009), Earned Value Management AC and BAC – Step 2 (March 2, 2009), and Earned Value Management – Planned Value – Step 3 (posted March 11, 2009).