Organizations face the need to standardize their budgets and forecasts so that there is a level of reliability in how Project budgets and forecasts are created across the business. Many companies focus too much on reporting requirements and overlook the importance of collating and aligning the cost and time effort in projects into the overall picture for the business.

Much of the time, project schedulers and cost controllers work independently whereas they should be working together. Schedulers often work with work breakdown structures (WBS) to structure their workflow and activities, while cost controllers manage cost codes, fiscal periods and transactions. Scheduling and cost are also often using different tools to report their data, often losing sight of the overall picture, particularly when it comes to time phasing of cost data.

To ensure the project is executed in the most cost and time efficient manner, the project scheduler and cost controller must be working together by;

• Alignment of project data tools (e.g. alignment of WBS in cost and schedule tools)
• Identifying the resources needed to complete deliverables in a specified timeframe
• Time phase project costs
• Verify baseline schedule and budget
• Capture any additional costs that may arise as a result of risks (e.g. risk based contingency)
• Confirm resources are fully utilised

In aligning the cost estimate and the schedule, the Project Manager can identify project performance and make adjustments needed to confidently estimate the time and money needed to complete. Earned Value Management (EVM) is a well-known technique to measure and control the time and cost performance of a project to predict or forecast the final project duration and cost. Forecasting the final cost and duration allows the Project Manager to take corrective actions for future work.

With these procedures and practices enacted, as the project progresses, schedule sequencing and reforecasting is reviewed and monitored, promising the greatest likelihood of project success.

Author:

Milica Dobrijevic