Project Cost Management (PCM) is a method that uses technology to measure cost and productivity through the full life cycle of enterprise level projects.[citation needed]
PCM encompasses several specific functions of project management including estimating, job controls, field data collection, scheduling, accounting and design. PCM main goal is to complete a project within an approved budget[1]
Beginning with estimating, a vital tool in PCM, actual historical data is used to accurately plan all aspects of the project. As the project continues, job control uses data from the estimate with the information reported from the field to measure the cost and production in the project. From project initiation to completion, project cost management has an objective to simplify and cheapen the project experience. [2]
This technological approach has been a big challenger to the mainstream estimating software and project management industries.[3] [4]
Project Cost Management is one of the ten Knowledge Areas outlined in the A Guide to the Project Management Body of Knowledge (aka the PMBOK Guide). It is used during the Planning and Monitoring & Controlling Process Groups.
There are 4 processes in this knowledge area including
- Planning Cost Management
- Estimating Costs
- Determining Budget
- Controlling Cost
A key technique for Project Cost Management is Earned Value Management (EVM).
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