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ess, and repeat the cycle at suitable intervals. If the end results get really out of line with the baseline plan, you may have to change the plan. More likely, there will be (or have been) scope changes that change the reference baselines which means that every time that happens you have to change the baseline plan anyway.But project cost control is a lot more difficult to do in practice, as is evidenced by the number of projects that fail to contain costs. It also involves a significant amount of work, as we shall see, and we might as well start at the beginning. So let us follow the thread of project cost control through the entire project life span.And, while we are at it, we will take the opportunity to point out the proper places for several significant documents. These include the Business Case, the Request for (a capital) Appropriation (for execution), Work Packages and the Work Breakdown Structure, the Project Charter (or Brief), the Project Budget or Cost Plan, Earned Value and the Cost Baseline. All of these contribute to the organization39。s management of the entire project portfolio.? The cost of the work of preparing the Business Case is usually covered by corporate management overhead, but it may be carried forward as an accounting cost to the eventual project. No doubt because this will provide a tax benefit to the organization. The problem is, how do you then account for all the projects that are not so carried forward?? If the Business case has sufficient merit, approval will be given to proceed to a Development and Definition phase.In the project39。s format for purposes of parison with other projects and consequent funding approval.? In practice all the data for the type of bottom up approach just described may not be available.In this case alternative estimating approaches are adopted that provide various degrees of reliability in a top down fashion. For example:Order of Magnitude estimate – a ball park estimate, usually reserved for the concept phase only Analogous estimate – an estimate based on previous similar projectsParametric estimate – an estimate based on statistical relationships in historical data? Whichever approach is adopted, hopefully the sum thus arrived at will be approved in full and proves to be satisfactory! This is the trigger to start the Execution Phase of the projectNote: Some managements will approve some lesser sum in the mistaken belief that this will help everyone to sharpen their pencils and work smarter for the benefit of the organization. This is a mistaken belief because management has failed to understand the nature of uncertainty and risk in project work. Consequently, the effect is more likely to result in corner cutting with an adverse effect on product quality, or reduced product scope or functionality. This often leads to a game in which estimates are inflated so that management can adjust them downwards. But to be fair, management is also well aware that if money is over allocated, it will get spent anyway. The smart thing for managements to do is to set aside contingent reserve funds, varying with the riskiness of the project, and keep that money under careful control.Ownership of approved capital? If senior management approves the RFA as presented, the sum in question bees the responsibility of the desig