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1、山東建筑大學(xué)畢業(yè)設(shè)計(jì)外文文獻(xiàn)及譯文1外文文獻(xiàn):Project Cost Control: The Way it WorksBy R. Max WidemanIn a recent consulting assignment we realized that there was some lack of understanding of the whole system of project cost control, how it is

2、 setup and applied. So we decided to write up a description of how it works. Project cost control is not that difficult to follow in theory.First you establish a set of reference baselines. Then, as work progresses, you

3、monitor the work, analyze the findings, forecast the end results and compare those with the reference baselines. If the end results are not satisfactory then you make adjustments as necessary to the work in progress, and

4、 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 referenc

5、e 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

6、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, wh

7、ile 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 a

8、nd 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 organization's ability to effectively control proje

9、ct costs.FootnoteI am indebted to my friend Quentin Fleming, the guru of Earned Value, for checking and correcting my work on this topic.The Business Case and Application for (execution) FundingIt is important to note th

10、at project cost control is most effective when the executive management responsible has a good understanding of how projects should unfold through the project life span. This means that they exercise their responsibiliti

11、es at the key decision points 山東建筑大學(xué)畢業(yè)設(shè)計(jì)外文文獻(xiàn)及譯文3The Project Management Plan, Project Brief or Project Charter? If the deliverable consists of a number of different elements, these are identified and assembled into Work P

12、ackages (WPs) and presented in the form of a Work Breakdown Structure (WBS).? Each WP involves a set of activities, the “work“ that is planned and scheduled as a part of the Project Management Plan. Note, however, that t

13、he planning will still be at a relatively high level,and more detailed planning will be necessary during execution if the project is given the go ahead.? This Project Management Plan, by the way, should become the “bible

14、“ for the execution phase of the project and is sometimes referred to as the “Project Brief“ or the “Project Charter“.? The cost of doing the various activities is then estimated and these estimated costs are aggregated

15、to determine the estimated cost of the WP. This approach is known as “detailed estimating“ or “bottom up estimating“. There are other approaches to estimating that we'll come to in a minute. Either way, the result is

16、 an estimated cost of the total work of the project.Note: that project risk management planning is an important part of this exercise. This should examine the project's assumptions and environmental conditions to ide

17、ntify any weaknesses in the plan thus far, and identify those potential risk events that warrant attention for mitigation. This might take the form of specific contingency planning, and/or the setting aside of prudent fu

18、nding reserves.Request for capitalConverting the estimate? However, an estimate of the work alone is not sufficient for a capital request. To arrive at a capital request some conversion is necessary, for example, by addi

19、ng prudent allowances such asoverheads, a contingency allowance to cover normal project risks and management reserves to cover unknowns and possible scope changes.? In addition, it may be necessary to convert the estimat

20、ing data into a financial accounting formatthat satisfies the corporate or sponsor's format for purposes of comparison with other projects and consequent funding approval.? In practice all the data for the type of “b

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