PM blog and wiki

Q1:Topic: Managing Conflict within the project-Write 300 words with examples.

Q2:”Project Costs”- on this topic write 300 words

when your business takes on a new project, the success or failure of your work depend on the efficiency of your project management efforts – and the most important element of your project management efforts is handling project management costs.

Project management is a process that aims to help initiate, plan, execute, control, and finish a project by meeting specific requirements and goals, all before a specific deadline.

Cost management is the process that involves planning, controlling, and otherwise handling the budget of a business – cost management helps the business predict unavoidable expenses with as much accuracy as possible.

Project management costs involve all costs that cover the tasks related to project management, i.e. everything involving initiating, planning, executing, controlling, and finishing a specific project.

And, finally, project cost management is a process that involves the estimation and allocation of project budget and subsequent costs, as well as project cost control.

The benefits of proper project cost management stem from the main objectives of cost management, which include:

• project delivery, according to the value criteria established at the start of the project
• monitoring and documenting all transactions, payments, and project-related changes
• efforts to reduce business costs overall

The efficacy of your cost management efforts are directly influenced by several factors:

• project costs
• project budget
• project cost estimates
• project management software

What are project costs?

Overall, project costs are the total funds needed to monetarily cover and complete a business transaction or work project.

Project costs involve:

1. Direct costs – Direct costs are those directly involved with, and necessary in order to complete said project.
2. Indirect costs – Indirect costs for a project are costs which do not directly lead to project completion but are still vital for the company or individual working on said project. As such, they are a part of individual project costs.

Direct costs include the cost of:

• professionals working on the project – i.e. company employees or outsourced contractors and freelancers
• equipment – i.e. the tools and machines the employees, contractors, or freelancers use to finish the project
• materials – i.e. physical materials (that are not tools or machines) needed to finish the project
• project management tasks – i.e. all tasks meant to facilitate project completion before a given time, and according to specific requirements
• engineering tasks (if needed) – i.e. all research, design work, and installation of equipment made in order to finish the project
• transportation (if any) – i.e. custom rates, bringing the finished product to retailers, etc.

Indirect costs include the cost of:

• operating overhead expenses, i.e. office rent, utilities, insurance, general office equipment, and materials
• target annual salary, i.e. the clean profit the company or individual wants to make, in addition to the money needed to cover overhead and other expenses

The purpose of project cost management is to handle direct and indirect costs and keep them within the project budget.