Questions tagged [cost-management]
Cost Management is an organizational methodology by which a company controls and plans the costs of doing business.
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Which are top three metrics one should look at as PM specially from IT industry perspective [closed]
I know its very subjective question, however in general I wanted to understand which are the top three metrics as PM, I should look at while working in a Software project
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3answers
65 views
What to do when no more financing is available for a project in PMI
I wonder what would be the formal procedure and step according to PMI when you realize that your project ran out of money and no more financing from client is available?
I think no other alternative ...
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1answer
40 views
RFI response form asks for “Assumptions” as just a single money amount
I am surprised by the last row in this RFI response form:
My project's initial fees are 1m$, recurring fees are 100k$/year, under the assumption that I provide only the software and they run it on ...
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1answer
25 views
When we are calculating the cost for implementing a new web application, should we have separate cost for providing the source code to the client [closed]
I am working on a new asp.net core MVC web application as an out sourced senior software developer/architecture. now i did many requirements gathering sessions with the client, and i came our with a ...
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0answers
45 views
How to calculate earned value (EV) in this example?
You are managing a project with a total planned budget of $100,000. To
date, you have actually spent $41,000. When you look at all the
activities you have completed to date, you see that you ...
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4answers
227 views
What can I do when I can't adjust scope, resources, or schedule and a team member wants a raise?
After almost 20y programming and 5y managing I have arrived at a state to be so confused with the basics that I need help from outside!
At the project management we have 3 pillars:
Scope: features ...
2
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2answers
48 views
Is money for reward and recognition set aside by PM during Cost Planning?
One of the tools and technique as part of "Develop team" process is to give reward and recognition to the people/team for showcasing desirable behavior during project execution. This is done because ...
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2answers
157 views
How to Handle a Funding Overrun on a Time and Materials (T&M) Contract
Here is the scenario: You are the PM of a new T&M contract that has a $800,000 budget at completion (BAC) and a price of $1,000,000 and a one-year period of performance (POP). Scope is fluid, ...
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1answer
43 views
Should I calculate ROI as Benefits/Costs or Gains-Investment/Investment? Which is rather correct?
I am kind of puzzled as various sources give either of those formulas to calculate ROI:
Cost of Benefits /Cost of Investments
or
(Gains - Investment) / Investment
The obvious problem that if I ...
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1answer
60 views
How can we know that implementing SAFe results in profits for the company?
Did any company measure profits after implementing SAFe?
How can we know that total costs of implementing SAFe are less than profits?
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1answer
91 views
How to represent an iterative sprint within your schedule list
In an agile approach we can use tools like kanban to plan, measure and monitor sprints. But when we need to use schedule systems like MS Project or any other online collaboration tool that works like ...
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4answers
106 views
Under what circumstances should a software vendor be allowed to increase charges due to unforeseen complexity?
Something that occurs quite often in outsourced software projects is the vendor underestimates the complexity or learning curve associated with an agreed-upon statement of work, and wants to increase ...
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4answers
89 views
Is cost management part of Project Management?
Is Cost Management (Estimation and Control) part of Project Mangement?
Are cost management techniques (COCOMO, Function Point, etc) part of PM? Or only Software Project Management?
I ask this ...
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1answer
33 views
How to communicate/word cost ranges?
When you display cost estimates, when it comes to ranges, what words do you use to convey: Lower End of the Range, and higher End of the range.
The terms I chose (Min/Max) were not liked , so I was ...
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2answers
514 views
What is 'overhead' in a research project budget?
I am a new to project management, and I have started working on a European project proposal.
I can't figure out what "overhead" actually is. Can anyone explain to me, or provide me with sources from ...
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4answers
90 views
Project costing & preparation
I have a client who has an "idea" of his project "that is in his mind". He said he is not going to share any details, knowledge, and ideas until we have a contract because as he's saying "he's worried ...
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2answers
79 views
Cost management without time tracking in Scrum
In my company I'm responsible for several software development teams. Lately our managers asked me to establish a time tracking system for our developers to have better overview over the actual costs ...
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1answer
2k views
How do I calculate a project management fee on my design projects?
I run a small business and I have to take on an additional resource to handle an increased workload from one of my clients. How do I calculate my project management fee?
I estimate I will spend about ...
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2answers
2k views
What are differences between Cost Plus Award Fee and Cost Plus Incentive Fee Contract?
Both Cost Plus Award Fee and Cost Plus Incentive Fee contract types are Cost Reimbursable contracts in which the seller is reimbursed for completed work plus a fee representing profit.
In the PMBOK ...
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1answer
23 views
MS Project 2013 cost adjustment
I would like to know what is the best way to handle cost adjustment to the baseline in MS project. Do you save the baseline when you adjust the cost when you get new estimate or not?
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1answer
74 views
How can I add a rented resource to MS Project?
I need to create a new resource that include a pay per day and quantity parameters.
For example, I have a resource "Rented Car - Type 1" with 60€/Day as daily cost.
In my project, I have a task (10 ...
3
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4answers
526 views
How to finance non-programming activities when clients don't want to pay for these activities?
On one hand, software development involves a lot of non-programming activities like requirements gathering (including analysis), estimating, planning, testing, tracking work, change request management,...
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1answer
186 views
Is COCOMO 2 Estimation Sound, or is there Something Better?
I am reading about COMOMO estimation and what I see is margin of error is almost always too high. Also I didn't like the idea to use lines of code to measure progress. So I wonder is COMOMO really a ...
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1answer
289 views
How to manage cost of change / impact analysis with no funding?
The PMBOK® Guide recommends that when a scope change request is submitted, an impact analysis is performed to assess how the change could affect the overall project. How does this work affect the ...
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1answer
315 views
ETC calculation including SPI
PMBok (page 221) mentions two formulas for estimation ETC based on previous project performance. These are:
(1) ETC = (BAC-EV) / CPI
(2) ETC = (BAC-EV) / (CPI * SPI)
While (1) is completly clear ...
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1answer
92 views
How does the public sector estimate the cost of large-scale infrastructure projects?
Using the example of the proposed Donald Trump Mexico-USA Border Wall; various figures for the estimated cost have ranged considerably.
Mr Trump claims the total cost of the wall will be $10bn (£...
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1answer
216 views
Earned value management with ressources of type “Cost”
I'm working on project management with the client-side manager. We manage the cost with cost type ressources as we only know how much we are going to pay for each task and not how many hours of work ...
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2answers
103 views
Overheads calculation assumptions
I was wondering if there is any standard or basis by which to consider overhead costs in a project. Normally we practice 10-15%, but I wanted to know what others are following and what's the best ...
3
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3answers
155 views
In Scrum, should we be billed for defects and unplanned activities?
My company is the client. An offshore company is developing our product. We pay them on a monthly basis. They send us an invoice with a fixed rate per full time resource. They also send us a ...
1
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1answer
83 views
Can I add columns in MS Project Pro to display time-phased costs?
Can I add columns in MS Project Pro to display time-phased costs? I would like to see a cost column for each year of the project. The year-column would only include costs for that year. I can almost ...
0
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1answer
159 views
Governance cost as percentage of FTEs
In an Outsourcing IT project we are are trying to estimate the relationship between the governance cost and the project size in FTE.
For example, if the governance cost of a 500 FTEs project is X ...
3
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1answer
82 views
Agile and increased costs
The digital function of the organization is attempting to adopt the agile methodology and this is causing an issue with the perceived increased in costs when due diligence is performed on the initial ...
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1answer
451 views
Indirect cost calculation
As shown in the picture below, my task is to calculate direct and indirect costs using this table at first. Further I have to do the calculation according to Direct costing, Standard costing and ABC ...
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1answer
284 views
S-Curve in Cost Management
I learned in class that the cost management on a project could be graphed as an S-Curve.
Low in the beginning but then very high and stays high.
Do you have an idea why the graph stays high even ...
2
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2answers
394 views
How to calculate Present Value and Net Present Value?
I´m doing a feasibility study to check the benefits of an investment in a certain tool. My table shows the savings and the costs in the project over 4 years. So, I´m trying to understand how to apply ...
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4answers
1k views
How do I estimate costs for running a finished software project?
I have an ongoing software development project nearing completition. My question is how I can estimate the necessary budget to run the software once it's finished (run), develop it further, for ...
0
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1answer
78 views
Vocabulary used in drawing activity diagrams
In a drawing activity diagram when it says:
Activity A Follows Activity B
does it mean A->B or B->A?
I am confused with this lingo.
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1answer
2k views
MS Project: Show annual project cost
I am currently planning a project in MS Project. After allocating all resources and other cost to the tasks I need to present the annual budget of the project (split into manpower and direct cost).
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1answer
3k views
Cost estimate template or examples for software development [closed]
I am preparing my first cost estimate for a project as a freelance software developer, and I am wondering if there are templates or examples available to help me get started.
I understand that a ...
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4answers
615 views
How can I prove on paper that we need more resources for our team?
The higher management in most places seems to have a pigheaded tendency to avoid hiring more resources at all costs. The company has been growing in the last few years and a lot more functionality has ...
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1answer
2k views
Formula for calculating cost over a certain time period
How can I calculate the cost of a project over a given amount of time.
For example:
Solution 1: cost 30k setup and 3k/month for as long as we have the service.
Solution 2: cost 40k setup and 2k/...
3
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2answers
452 views
Cost of resources in virtual environments
In planning hardware costs, considering the distribution of the product in virtual/cloud environments, where the cost is derived from the use of resources, considering the following points:
The ...
2
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1answer
161 views
Estimated costs
Should I consider a margin calculating work hours, then increase the final cost, based on estimated hours + margin hours? Or should I add a margin after the estimated hours of work, increasing the ...
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4answers
2k views
Factors to consider for Merging two or more IT Operations team into ONE
I believe this question falls under a Project from the Management
side.
But I would appreciate any help or resources for the scenario. The
project as an IT Manager, is responsible for merging ...
2
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2answers
373 views
Queuing theory for measuring “change” delivery?
In his presentation "Adopting Continuous Delivery" (http://www.infoq.com/presentations/Adopting-Continuous-Delivery), Jez Humble mentions (~6:50) that queuing theory proves that optimizing for ...
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2answers
231 views
How to estimate cost to remove bug?
Couple of month before I committed one project to remove bug from that software, that project is not developed according to customer requirements. So, I have included some advanced function according ...
2
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2answers
2k views
The meaning of & Calculating Project Budget
I'm very new to the whole Project Management world, so this question may be at the beginners level, anywho:
What is the Budget Cost compared to the full Cost of the Project?, based on the research I ...
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2answers
227 views
Agile team management strategy for small projects [closed]
I would like to thank StackExchange - Project Management group for providing me with full support and guidance to move forward in my career path. I'm now a Project Manager and a Junior web and ...
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2answers
1k views
Difference between “Earned Value” and “Contribution Margin”?
I have been searching here and there for the meanings of "Earned Value" and "Contribution Margin", it doesn't seem to make sense to me why so many project could have a positive(+) Contribution Margin, ...
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2answers
1k views
Microsoft Project: How to represent salaried employees?
I can't figure out how to represent salaried employees in Microsoft Project. I created a 24 month schedule, and assigned a $100/year resource to a 12-month task. I ran into two problems:
I expected ...
