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Time and Cost Management PDF

   

Added on  2020-05-11

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Essence of Time and Cost Management Plan in a Project 1ESSENCE OF TIME AND COST MANAGEMENT PLAN IN A PROJECTName InstitutionCourseTutorCity/StateDate

Essence of Time and Cost Management Plan in a Project 2a)Significance of time and cost management plan when undertaking projectexecutionTime and cost management are fundamental requirement for any viable project. This paper dissects the significance of adopting a sound time and cost management blueprint in project execution. The subsequent section captures different techniques in time and cost management in a project. The final part succinctly envisages activities that demand monitoring and controlling in a project.Project time planning involve allocating time to different phase of the project to ensure thee is timely and appropriate completion of the project. Rushing into project execution without deliberate preparation and planning may result to delays or involvement of extra cost in executing the project (Antvik & Sjoholm 2016). Having a sound time planning enables the organisation to realize the magnitude of the work involved in the project and whattime would be sufficient to execute the plan. Time planning also helps the project management team to estimate the work period necessary to accomplish a given task based on the available information concerning the work effort and the resources available to complete a given task. Furthermore, time planning gives room for revising, reviewing of resource estimates and task duration estimates in order to optimize the trade-off between resources, cost, and time. Project cost planning on the other hand entails the process of cost budgeting and cost estimating. According to Kezner,cost management plan is significant in tracking total cost fordifferent activities undertaken in the project (2015). It is also vital in ensuring that the project management team draft an efficient and a realistic budget that guarantees a reasonable cash flow (Antvik & Sjoholm 2007). In addition, cost management planning enables the project management team to identify the sources of funds and the cost involved in implementing the

Essence of Time and Cost Management Plan in a Project 3project. It also guide the team manager whether or not to proceed with the project after weighing social costs and benefits (Kezner, 2015).b)Time management techniquesThe first approach is Critical Path Method (CPM). This method is a deterministic approach that employs the use of network dependencies between underlying tasks and task duration to compute the longest network path known as ‘critical path’ (Schwalbe 2015). The duration for the ‘Critical path’ signifies the shortest period for project completion. The method calculates how each task can be accomplished in the shortest time possible by determining their early start and completion date (Schwalbe 2015). Once the dates have been determined, the completion date for the entire project can also be approximated. However, CPM approach does not consider the limitation of resources (Moder, Phillips & Davis 1995).Another time management technique is Program Evaluation and Review Technique (PERT). This method presumes that the project is acyclic meshwork of activities (Bredillet, 2005). Unlike CPM, PERT integrates uncertainties in limited sense by adopting probability distribution for every task. It also assumes approximation of three distinct estimates namely: optimistic, most likely and pessimistic (Bredillet 2005). Calculations are done using variations, expected values and some probability principles. Expected time-span for the entireproject is determined by summing up expected time of every task on critical paths.The total time for the entire project will follow statistical distribution (Rolstadaas 2008). Ultimately, the time-span for the whole project will have the variations and the expected values, which determines the probability of accomplishing the project in a given duration.Rolstadaascontends that PERT results are more realistic than CPM (2008). The method also addresses uncertainty issues. Since PERT approach employs expected values andstandard deviation of the distribution in determining chances of realizing the scheduled dates

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