As part of creating business cases and managing projects, business analysts and project managers should be aware of the types of costs to take into consideration.
1. Costs can be classified as either variable or fixed
Variable costs are dependent on the quantity of output generated. For example, the more finished goods are produced in a manufacturing process, the higher the cost of supplies. Other examples of variable costs include fuel costs, wages, production materials and supplies.
Fixed costs on the other hand, remain the same, regardless of the output generated. Examples include setup costs such as rent.
2. Another categorization of costs is direct and indirect
Direct costs are linked to the work carried out on the project, such as project materials, travel costs, allowances earned by project team members, etc. For example, if you outsource development to professionals, the amount you pay them constitutes part of your project’s direct costs.
Indirect costs are costs incurred by multiple projects. Examples include taxes, general administrative expenses, cleaning services, project manager’s pay, etc.
I finally passed my PMP exam today with an “Above Target” rating in all 5 process groups. Attaining the PMP certification is a journey I was on for quite a while, I must say. I set the goal a couple of years back but was too busy to do much about it. It feels fulfilling now that it’s done and dusted. I’ll outline in this post, what helped and what didn’t, especially for those on the path to getting certified. I hope this helps.
As a project manager, you will be expected to come up with project plans. While plans certainly have their downfalls—they are hypothetical, constrain future ideas, and are perpetually out-of-date—they certainly have their uses. In fact, your company or client will need to review the project plan in order to determine when tasks will be completed, how much the project may cost and validate the project deliverables/scope. Guest Post By Ben Aston.
Understanding exactly what your business needs to work more efficiently as you’re navigating projects is key to choosing tools that will support (and not hinder) your goals. Adding a software solution just to have more tools, without understanding exactly what you truly need may, in fact, cause increased or unnecessary costs and frustration to your small team. Guest Post By Jeni Rogers
Think of the PMP Exam as a list of facts. How many of these facts do you know?
Lengthy or complex projects can sometimes be necessary to support growth initiatives within a company and the skills and tools you use as a project manager will ensure that you successfully oversee your projects to completion. Guest post by Jeni Rogers
Study for the PMP Exam - Professional & Social Responsibility
Preparing for the PMP exam? Here are some flashcards for practice. These are based on PMBOK - Sixth Edition.
Completing a project is never easy. Even a project you are working on by yourself can prove difficult to complete. How many times have you started a project and given up halfway through? Well, imagine how difficult it is for businesses with so many different people and departments working on projects—the high failure rates are hardly surprising. This infographic from Trainwest takes you through why projects fail and what project managers can do to keep project teams motivated.
Fast tracking and crashing are 2 schedule compression techniques for managing time on projects. If your project is running late or you would like to shorten its duration, these 2 techniques can come in handy:
This method of planning is used on evolving projects where complete information is not available. When requirements are vague or the key activities that need to be executed are not clear upfront, the rolling wave planning technique can come in handy.