Project Cost and Finance Management

1st Lecture
MSPM-1 (Spring 2016)
projects_management@hotmail.com

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PCFM-Project Cost and Financial Management

Project budget and Project costs plays a

key role in the project success.

The goal of this course is to develop skills

required to effectively manage projects
cost and budget.
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The PMBOK GuideFifth Edition

The PMBOK GuideFifth Edition is the preeminent
(excellent) global standard for project management. It
represents generally recognized Good Practices that
all project managers need to attain high standards and
project excellence.
The project management is accomplished through the
appropriate application and integration of 47 Logically
grouped project management Processes.

The main activities of each PM process group can be

mapped into 10 knowledge areas. PMBOK Fifth
Edition 2013.
Not for Sale , Print or Copy . Only for education inside the classroom. M.Shoaib Naqshbandi MSPM- Islamabad. 2016.

Not for Sale , Print or Copy . Only for education inside the classroom. M.Shoaib Naqshbandi MSPM- Islamabad. 2016.

Project and Project Management

A Project is Group of activities to be
performed with limited resources to yield
specific objectives, in a specific time, and in a
specific locality. [PMBOK] Describes project
as a temporary endeavor to produce a
unique product, service or result.

Project Manager follows PM Plan.

Project Management is the application of

skills, knowledge, tools and techniques to
project activities.
Not for Sale , Print or Copy . Only for education inside the classroom. M.Shoaib Naqshbandi MSPM- Islamabad. 2016.

Home Assignment
Q1. Your client has asked to increase the Scope
during execution. Discuss its effects on project
time and Cost. Give practical example from your
own field?
Q2. Your client has asked to reduce time during
execution. Discuss its effects on project scope and
Cost. Give practical example from your own field?
Q3. Your client has informed about reduction in
budget during execution. Discuss its effects on
project scope and time. Give practical example
from your own field?
Not for Sale , Print or Copy . Only for education inside the classroom. M.Shoaib Naqshbandi MSPM- Islamabad. 2016.

Project is sucessful when!

Completed within
scheduled time

Scope achieved.
Accepted by the
customer
Completed within
approved budget

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PortfolioVs Program
1. Program: is a group of related projects managed in a
coordinated way to obtain benefits and control not
available from managing them individually. A project
may or may not be part of a program but a program
will always have projects.
2. Portfolio: is a collection of projects or programs and
other work that are grouped together to facilitate
effective management of that work to meet strategic
business objectives.
3. A program manager provides leadership and
direction for the project managers. Program
managers are responsible for more than the delivery of
Project results.
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(Project Management Office)

PMO: A body responsible for centralized and coordinated

management of projects under its domain.
PMO Function.
1. Managing shared resources across all projects.
2. Identifying/developing
project
management
methodology, best practices, and standards.
3. Coaching, mentoring, training, and oversight.
4. Monitoring compliance with project management
standards, policies, procedures, and templates via
project audits.
5. Developing and managing project policies, procedures,
templates, and other shared documentation.
6. Coordinating communication across projects.
Not for Sale , Print or Copy . Only for education inside the classroom. M.Shoaib Naqshbandi MSPM- Islamabad. 2016.