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    Cost Monitoring: Presented by Somayo Varam 7 Semester, Civil MIT

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    VARAM'S ENTERTAINMENT
    This document discusses cost monitoring for projects. It begins by defining cost monitoring as the process of planning and controlling a project's budget. It then outlines key features of cost monitoring such as setting targets, comparing actual performance to standards, and taking corrective actions. The document also details various cost monitoring techniques including budget planning, cost tracking, and change control. It notes that cost monitoring aims to complete projects within budget and discusses total project costs as well as the advantages and disadvantages of cost monitoring.

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    Cost Monitoring: Presented by Somayo Varam 7 Semester, Civil MIT

    Uploaded by

    VARAM'S ENTERTAINMENT
    58 views13 pages
    This document discusses cost monitoring for projects. It begins by defining cost monitoring as the process of planning and controlling a project's budget. It then outlines key features of cost monitoring such as setting targets, comparing actual performance to standards, and taking corrective actions. The document also details various cost monitoring techniques including budget planning, cost tracking, and change control. It notes that cost monitoring aims to complete projects within budget and discusses total project costs as well as the advantages and disadvantages of cost monitoring.

    Original Description:

    PRINCIPLES OF MONITORING COSTS

    Original Title

    Cost Monitoring

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    This document discusses cost monitoring for projects. It begins by defining cost monitoring as the process of planning and controlling a project's budget. It then outlines key features of cost monitoring such as setting targets, comparing actual performance to standards, and taking corrective actions. The document also details various cost monitoring techniques including budget planning, cost tracking, and change control. It notes that cost monitoring aims to complete projects within budget and discusses total project costs as well as the advantages and disadvantages of cost monitoring.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    58 views13 pages

    Cost Monitoring: Presented by Somayo Varam 7 Semester, Civil MIT

    Uploaded by

    VARAM'S ENTERTAINMENT
    This document discusses cost monitoring for projects. It begins by defining cost monitoring as the process of planning and controlling a project's budget. It then outlines key features of cost monitoring such as setting targets, comparing actual performance to standards, and taking corrective actions. The document also details various cost monitoring techniques including budget planning, cost tracking, and change control. It notes that cost monitoring aims to complete projects within budget and discusses total project costs as well as the advantages and disadvantages of cost monitoring.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    COST MONITORING

    Presented by
    SOMAYO VARAM
    7th semester , Civil
    MIT
    Content:
     Introduction
     Features of cost monitoring

     Cost monitoring techniques

     Total cost

     Advantages of cost monitoring

     Disadvantages of cost monitoring

     Conclusion
    Introduction:
     Cost monitoring is concerned with the process of
    planning and controlling the budget of a project.
     It includes activities such as planning,
    estimating, budgeting, financing, funding,
    managing, and controlling costs so that the
    project can be completed within the approved
    budget.
     Cost management covers the full life cycle of a
    project from the initial planning phase towards
    measuring the actual cost performance and
    project completion.
    Features of cost monitoring:
     Cost monitoring process involves setting targets
    and standards, ascertaining the actual
    performance, comparing the actual performance
    with standard, investigating the variances and
    taking corrective action.
     It aims at achieving the standard.

     It is a preventive function.

     It contains guidelines and directive management


    such as, how to do a thing.
    Cost monitoring techniques:
     Budget planning
     Cost tracking

     Time management

     Project change controlling

    Change control contains five stages :


    i) Proposing a change
    ii) Summary of impact
    iii) Decision
    iv) Implementing a change
    v) Closing a change
     Earned value use.
     In CPM, time is related to cost and the object is
    to develop an optimum time-cost relationship.
     If a project goes on indefinitely, the cost will
    increase.
     Similarly, cost will increase if project is
    expedited, and
     Cost is minimum at some optimum project
    duration.
    Total Cost:
    There are two types of costs associated with a
    project:
    (i) Direct costs:
    It represents the expenditure which can be
    allocated to different activities in a project, like
    manpower, material etc.
    (ii) Indirect costs:
    It related to the control or duration of the
    work, financial overhead, lost production etc.
    TOTAL PROJECT COST AND OPTIMUM DURATION
    Advantages of cost monitoring:
    (i) It helps the firm to improve its profitability and
    competitiveness.
    (ii) In the absence of cost control, profits may be
    drastically reduced despite a large and increasing
    sales volume.
    (iii) It is indispensable for achieving greater
    productivity.
    (iv) Cost control may also help a firm in reducing
    its costs and thus reduce its prices.
    (v) If the price of the product is stable and
    reasonable, it can maintain higher sales and thus
    employment of work force.
    Disadvantages of cost monitoring:
     Reduces the flexibility and process improvement.
     Restriction on innovation.

     Requirement of skillful personnel to set


    standards.
    Conclusion:
    Cost monitoring is the practice of identifying
    and reducing business expenses to increase
    profits, and it starts with the budgeting process.
    Reference:
    Project Planning and Control with PERT and
    CPM by Dr. B. C. Punmia and K.K. Khandelwal
    THANK YOU.

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