Cost managers sometimes use these terms as loose synonyms for the broad cost management function. Since you assess the success of a project at least in part by its cost performance, cost management is a prime determinant of project outcome.Ĭost management activities are conducted throughout the project life cycle, from planning and budget allocation to controlling costs during project execution and assessing a project’s cost performance upon completion.Īlthough cost management includes a whole ensemble of activities, it is sometimes referred to in terms of more specific functions, such as spend management, cost accounting, and cost transparency. Effective cost management ensures that a project is completed on budget and according to its planned scope. So what exactly is cost management?Ĭost management refers to the activities concerning planning and controlling a project’s budget. However, strong cost management helps you avoid that fate. The Project Management Institute (PMI) reported in 2016 that companies were completing only 53 percent of projects within their original budget. For projects in other sectors, the news is no better. ![]() ![]() In fact, the job is so challenging that half of all large IT projects massively blow their budgets, running on average 45 percent over budget and seven percent over time, according to consultants McKinsey & Co. Whether you are developing a new product, designing a facility, or changing a key process, it’s challenging to forecast and manage project costs effectively. Getting started with the Smartsheet API.ENGAGE Smartsheet ENGAGE brings together our global customers, experts, and partners to share their experiences, ideas, and best practices.Smartsheet events Your hub for Smartsheet events, webinars, Q&As, and user groups.Partners Learn about the Smartsheet partner program and access our partner directory.Community Explore user-generated content and stay updated on our latest product features.Help and Learning A comprehensive knowledge base, including articles, tutorials, videos, and other resources that cover a range of topics related to using Smartsheet. ![]()
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