PROJECT COST AND CONTROL -B Flashcards
(36 cards)
refers to the financial
resources required to execute a
project, encompassing all
expenditures from initiation to closure
Project Cost
are expenses that can be
directly attributed to a specific
project, product, or service. These
costs are often variable and directly
linked to the production or delivery of
goods and services
Direct Cost a
extend beyond the expenses
you incur when creating a product; they
include the costs involved with maintaining
and running a company. These overhead costs
are the ones left over after direct costs have
been computed. Encompassing all
expenditures from initiation to closure
Indirect Costs e
are business expenses that don’t
typically change with an increase or decrease
in the number of goods and services rendered,
produced, or sold by the busines
Fixed Costs a
are business expenses that
change in proportion to how much a company
produces or sells. ________________ increase or
decrease depending on a company’s
production or sales volume - they rise as
production increases and fall as production
decreases
VARIABLE COST
are costs that have already been
incurred and cannot be recovered. It refers to
the loss of time, money, or effort. These cannot
be calculated directly but can be mitigated by
focusing on future returns and setting feasible
goals and limits.
SUNK COST
is the mindset of
continuing with a decision just because
of past investments, even when logic
would say otherwise. It is a flawed
process of thinking and happens
because of the human aversion to waste
and the need to justify our decisions.
SUNK COST
FALLACY
involves
managing all aspects of a project,
including planning, scheduling, risk,
cost, and quality, to ensure it stays on
track and meets its goals
PROJECT
CONTROL
Involves tracking and managing the project’s
expenses, ensuring they align with your budget.
This includes estimating costs for resources, labor,
equipment, and materials, and implementing cost saving measures whenever possible.
COST
CONTROL
Schedule control ensures that every task is
completed within the allotted time frame, keeping
your project on track
SCHEDULE
CONTROL
Also defined as project’s mission control. It’s about
clearly defining the scope of work or what needs
to be done (the project deliverables) and ensuring
that only these tasks are completed
SCOPE
CONTROL
ensures that the construction work
meets the required standards and specifications.
Quality control
It’s about identifying potential risks that could
impact your project’s success and developing
mitigation plans.
RISK
MANAGEMENT
It’s about using your team, materials, and
equipment effectively and efficiently.
Time &
Resource
Management
Track spending, avoid overruns, and save costs
Budget Management
Monitor schedules, prevent delay
Timely Completion
Ensure work meets standards
Ensuring Quality
Spot and manage issues early
Mitigating Risks
Use labor and materials efficiently
EfficientResource Utilization
Make informed,real-time choices
Improved Decision Making-
This is the first phase of your project, where everything begins
to take shape conceptually. Here, project controls are essential
in establishing the project’s framework. They help define the
scope—clarifying what needs to be achieved, the tasks
involved, and the desired outcomes.
Project Initiation:
Layingthe
Foundation
With the foundation in place, the next step is to plan the path
forward. In this phase, project controls guide the creation of a
detailed project plan—outlining what tasks need to be done,
who will do them, and in what sequence
Project Planning:
Making the Game
Plan
This is the phase where plans are put into action. Project
controls are critical here for tracking task progress and
ensuring alignment with the plan.
Project Execution:
Where the Action
Happens
Project controls must be maintained consistently throughout
the project. This phase involves ongoing oversight to ensure
everything remains on track
Project
Monitoring &
Control:Keeping
aSteady Eye
