Time-Phased Project Work and Projecft Cost Control Essay

1976 Words Jun 10th, 2006 8 Pages
Time-phased project work is the basis for project cost control. Work package duration is used to develop the project network. Further, the time-phased budgets for work packages are timetabled to establish fiscal measures for each phase throughout the project. The time-phased budgets are to emulate the real cash needs of the budget, which will be used for project cost control. This information is useful to estimate cash outflows. The project manager's attention is on when the costs are to occur, when the budgeted cost is earned, and when the actual cost materializes. This information is made up to measure project schedule and cost variances (Gray & Larson, 2005). The following are typical types of costs found in a project:
Direct Costs
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It is needed to support good decisions, needed to determine the length of time the project will need and its cost, it can determine whether the project is worth doing, it determines the cash flow needs of the project, and it determines how well the project is progressing (Gray et al.
2005).
Getting an estimate of doing the project will cost money and it entails time and details of the project to come up with a good decision. There are reasons for using macro or micro estimates on a project. Macro estimates maybe used for strategic decision taking, internal small projects, or projects with high uncertainty or unstable scope. On the other hand micro estimates are used for fixed priced contract, projects that highly considers cost and time factors, and if the customer wants detailed estimate of the project (Gray et al 2005). In implementing the Case Management System Care+, the team took the micro approach in estimating the time-phased budget for final approval of this project by the
Senior leadership. Choosing the micro approach, will establish low cost and efficient and reliable estimates of the project. The organization has provided the project estimate of the time and cost required to finish the project and the interim approval has already been granted. After examining the time, resource, and cost estimates, the team consolidated the process into time-phased network, resource schedule and specific

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