Project Financial Management - 5 Tips for Good Project Cost Control | Summary and Q&A

21.3K views
September 26, 2019
by
Online PM Courses - Mike Clayton
YouTube video player
Project Financial Management - 5 Tips for Good Project Cost Control

TL;DR

Learn how to engage stakeholders, double-check estimates, use a staged budget release process, balance cost and risk in procurement, and apply judgment in earned value management.

Install to Summarize YouTube Videos and Get Transcripts

Questions & Answers

Q: How can stakeholders be engaged in the business case?

Stakeholders can be engaged by involving department heads in drafting the business case and getting their commitment to the final document through a formal signing process.

Q: Why is double-checking estimates important?

Double-checking estimates is important to ensure accuracy and increase confidence in the estimated schedules and budgets. It allows for exploration of any discrepancies and helps identify potential problems.

Q: What is a staged budget release process?

A staged budget release process ensures that budget is released only when the corresponding work has been done and is worthwhile. It aligns budget with project progress and contributes to good governance.

Q: How can cost and risk be balanced in procurement?

Balancing cost and risk in procurement involves achieving the right balance between minimizing cost and minimizing risk. This requires careful consideration of the value of minimizing risk against the value of minimizing cost, keeping in mind the importance of project outcomes.

Summary & Key Takeaways

  • Engage stakeholders in the business case by involving department heads and getting their commitment to the final document.

  • Double-check estimates by doing them twice using different methods or involving a red team review to ensure accuracy.

  • Use a staged budget release process to align budget with project progress and ensure governance.

  • Balance cost and risk in procurement by finding the right balance between minimizing cost and minimizing risk.

  • Apply judgment in earned value management by finding the right metrics to measure and accurately assess project progress.

Share This Summary 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on:

Explore More Summaries from Online PM Courses - Mike Clayton 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on: