Project Cost Management: Planning and Control Methods Review

This report provides a comprehensive review of planning and control methods for managing cost constraints in project management, focusing on the Triple Constraint or Iron Triangle model. It examines the strengths and limitations of the model, including its impact on project performance, budgeting, scheduling, and quality estimation. The report details two planning methods—Zero Based Budgeting (ZBB) and Cost Breakdown Structure (CBS)—and two control methods—Earned Value (EV) and S-Curve analysis—for managing cost constraints. Each method is evaluated for its strengths and weaknesses, with specific recommendations for addressing identified weaknesses, such as integrating quality analysis with earned value and aligning project schedules with budgets in S-Curve analysis. The report concludes by emphasizing the importance of careful examination and strategic alignment in project cost management to achieve successful project outcomes. Desklib provides access to this and other solved assignments for students.

Running head: PLANNING AND CONTROL METHODS
Planning and Control Methods
Name of student
Name of University
Author’s Note

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Table of Contents
1. Introduction..............................................................................................................................2
2. Triple Constrain Model............................................................................................................2
Strengths of triple constraint model.............................................................................................3
Limitations of triple constraint model.........................................................................................4
3. Two planning and control methods for managing cost constraints of Iron Triangle...............5
Planning Methods........................................................................................................................5
Control Methods..........................................................................................................................6
4. Evaluation................................................................................................................................8
Control Methods..........................................................................................................................8
Cost Planning Methods................................................................................................................9
5. Conclusion.............................................................................................................................10
6. References..............................................................................................................................12

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1. Introduction
For managing the delivery of the project, Triple Constraint or Iron Triangle expresses the
cost, time and scope or quality of the project. Each point of the triangle is connected to one point
of the triangle. If any one of the points is move, then the impact will be seen on the other two
points. Through this it is understood that the triangle model interrelates the quality, time and cost
constraints. It has become the predominant framework to improve the design of the project with
respective of the organizations. This paper will provide the review of the triple constraint model
and provide the information about the strength and limitation that the model has with the project.
In the next section, there will be two planning and controlling method that can manage the cost
control of the Iron Triangle. The strength and weakness of the planning and control method will
be evaluated and finally address the weakness each method by identifying them.
2. Triple Constrain Model
There are certain constraints that are necessary to carry out a project and is commonly
known as the Triple Constrain representing the triangle of time, scope and cost (Serrador and
Turner 2015). The delivery of the project must be within the cost and on time. It should meet the
scope of the project. Additionally, the requirements of the customer quality should also be meet
(Serrador and Pinto 2015). The figure below demonstrates the Triple Constraint model.

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Figure 1: Triple Constraint Model
Source: Author
Strengths of triple constraint model
Measuring the performance of the project: The author has proposed that the triple constrain
model of project management helps the team to take decisions effectively for planning and
controlling the respective projects during the phase of execution (Kumbhar, Desai and Gupta
2017). Thus, for such advantage of the project planning and controlling, the performance of the
project has significantly increase with the use of primary measurement framework of the Iron
Triangle (Iyer and Banerjee 2016).
Estimation of the budgeting of the project: according to the author, business involve project
management for proper estimation of the budgeting of the project (Klakegg and Lichtenberg
2016). This will identify various cost of the project that have lists of variables involve in it. For
triple constrain, cost is the major constraints for the project. With this model, the project manager
identifies the project costs and budget (McClory, Read and Labib 2017).

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Project Scheduling Estimation: The Project Scheduling Estimation is very important for the
completion of the project within the given scheduling timeline (Hazır 2015). Time is the major
factor for Triple Constrain Model of the project, as the business manager will find it helpful for
estimating their project time scheduling.
Project quality Estimation: The author explain Triple Constrain Model is not incorporated by
the quality of the respective project. However, it has become the ultimate objective within the
project of the triple constrain model (Berssaneti and Carvalho 2015). There is a belief of some of
the author that to enhance the project quality project cost is higher. When the business project
implement resources of low quality, it could not accomplish the project successfully. Thus, the
Triple Constrain Model delivers project quality as one of the important aspects for the project
management.
Limitations of triple constraint model
Strategic Dimension: Through strategic context the benefits of the project is successfully
delivered. There is a lack in the strategic factor of the model, due to which the project has to face
sudden problem in the mid-way of the process execution phases. The author, in his article has
argued that in reality, Triple Constraints deliver a successful project tactically but there are some
lacks in the strategic factors which include relevance, sustainably and impact of the project to
make it successful (Mir and Pinnington 2014).
Case Study:
A case study has been taken for the Wembley Stadium that was a failure in the year 2002. This
failure was due to the inefficiencies in the contemporary part of the project managers. Later, they
were able to find out the cause of the problem and the risk that is associated with the project and

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the Triangle of the project management (Alias et al. 2014). They were not able to understand the
risk that was connected with the outcome of project quality dimensions. Therefore, the delivery
of the project was done on time and within the estimated budget. However, they could not meet
the end users’ requirements of the customer.
3. Two planning and control methods for managing cost constraints of Iron Triangle
In this project, cost has become the major constraint for the Triple Constrain Model which
requires an estimation in the budget of the project. To manage the cost constraint of the
controlling and planning methods has been illustrating below:
Planning Methods
Zero Based Budgeting (ZBB): This method is used for budgeting and cost planning and it
justifies the activity and cost involved with the project (Callaghan, Hawke and Mignerey 2014).
The method of budgeting has initialized with a base zero and there where various processes of
the project where analysis was involved to implicate with the requirement and cost of the project.
There is top level strategic goal implemented into the process of budgeting in this method for a
particular project. With this method, the project manager measures the cost of the previous
expectations with the current expectations.
Cost Breakdown Structure (CBS): There is a similarity in the Cost Breakdown Structure and
the Work Breakdown Structure of the project that enables the entire project breakdown into
multiple activities that are meaningful for the completion of the project within the budget that
has been schedule (Laura and Vicente 2014). Therefore, the cost summary can be provided with
the help of CBS that is in this project. In overall, cost breakdown is the main purpose of the CBS
that is associated with the project (Shafiee, Brennan and Espinosa 2016). This will help the

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project manager to identify the plan and control the entire project. The figure of the CBS in the
project is the evident where the entire project breakdown has been done into smaller activities for
the departments that has include the operations, maintenance and man-hours with the project cost
summary.
Figure 2: Cost Breakdown Structure (CBS)
Source: Author
Control Methods
Earned Value (EV): In the environment of business, the project plan, completed work and value
of the actual work is control with the approach of Earned Value, to keep the track of the project
(Chen, Chen and Lin 2016). With respect to the project, the Earned Value also helps in index of
cost performance, index of complete performance, index schedule performance, schedule
variance estimation, and with estimated completion. The author has discussed that with the help

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of earned value, the project managers are able to compare the estimated cost against the cost
incurred so that the project can be complete at the expected time period.
S-Curve: the name itself signifies the curve shape of the business environment which
incorporate the project cumulative costs (Tripathi 2017). Business managers are able to monitor
and keep track of the actual progress in the project in correspond to the project cumulative cost
that has incurred. The diagram is the evidence of the S-curve that distinguished the three phases
namely the initial phase, expansion phase and the phase of maturity that has utilized the project
actual progress with some evaluation and tracking in respective of the project cumulative costs
that has involved. The growth of product or services in business is represented by a life cycle
curve with an S- shape which is demonstrated in the figure below:
Figure 3: S- Curve of the Business Life Cycle
Source: Author

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4. Evaluation of Cost Control Methods and the Cost Planning Method
Cost Control Methods
Evaluation strengths of Earned Value
With the help of earned value, the project managers are able to compare cost of estimation
against the actual cost that has been incurred to complete the project within the given time
period. With respect to the project, the Earned Value also helps in index of cost performance,
index of complete performance, index schedule performance, schedule variance estimation, and
with estimated completion.
Evaluation strengths of S-Curve
At the beginning of the S-Curve that is the initiation phase of the project, there is an estimation
in the profit and loss that has incurred with the project. With the help of S-Curve the project
performance path is displayed with respect to the project investment cost that has incurred.
Evaluating the weaknesses of Earned Value
The quality is not included in analyzing the Earned Value. Therefore, the situation may arise that
high-earned value is incorporated with the project but the project quality is not maintained.
Evaluating the weaknesses of S-Curve
If there is any discontinuity in the exiting shape, then it is completely helpless for the business
managers. Additionally, in S-Curve there is no indication with regard to the investment that has
been made or with regard to withdrawn of any new activities that has been implemented.
Address the identified weaknesses of Earned Value

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In order to simultaneously include the earned value estimation of the project with the project
quality maintenance, it is appropriate to have a software that can be helpful for different criteria
to co-ordinate with each other.
Address the identified weaknesses of S-Curve
The schedule project has to be align by the business manager with the budget of the project
whenever there is a decline in the productivity line.
Cost Planning Methods
Strength of Cost Breakdown Structure
There are number of discrete activities that has break down the project entirely with the
help of CBS. These has happened with respect to various departments in which the project was
involved. With the help of CBS it has become easier to plan a budget that can be involve in the
project.
Weaknesses of Cost Breakdown Structure
For any particular project the most prominent weakness has been estimated in the
breakdown of the cost. There is no hint provided about the process of breakdown were it could
be stop. Additionally, it even difficult to identify the value.
Address the identified weaknesses of Cost Breakdown Structure
There is a need of careful examination and evaluation of the business requirement and the
criteria by the Chief Executive Officer to implant the particular project. This would be
appropriate for the CBS to estimate a long run project.

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Strength of Zero Based Budgeting
It provides allocation of resources in an efficient way. The method of reducing the cost
will be identified by the project managers. It will identify and eliminate the non-useful activities
through which the target can be achieved.
Weaknesses of Zero Based Budgeting
The method used is very complicated. Due to this reason the time consumption is quite
high. Employees must be given proper training so that they can implement the method in a
proper way.
Address the identified weaknesses of Zero Based Budgeting
Due to the implementation complexity of the method and at the same time the
consumption of the time, it would be better to make the utilization of the plan in the selective
processes rather than elimination of the entire budget of the project.
5. Conclusion
From the study being done in the triangle model of the project management has clearly
demonstrated the concept behind the use of the triangle constraint in making the project. With
the evaluation done in the planning and control method has clearly identified the uniqueness of
the project management model. The study done on the case of Wembley Stadium has
demonstrated the model of the business. The project manager finds the business model useful for
managing the process of the business with all the requirement specified to make the project a
successful one. Thus, it has concluded that the management of the project is represented with a
triangle. The three constraints of the triangle can be challenged through various tools and

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techniques. Therefore, the project manager has to keep balance of the project constraints to
implement the appropriate tools for a successful project.

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6. References
Alias, Z., Zawawi, E.M.A., Yusof, K. And Aris, N.M., 2014. Determining Critical Success
Factors of Project Management Practice: A Conceptual Framework. Procedia-Social and
Behavioral Sciences, 153, Pp.61-69.
Berssaneti, F.T. And Carvalho, M.M., 2015. Identification of Variables That Impact Project
Success in Brazilian Companies. International Journal of Project Management, 33(3), Pp.638-
649.
Callaghan, S., Hawke, K. And Mignerey, C., 2014. Five Myths (And Realities) About Zero-
Based Budgeting. Mckinsey & Company, P.2.
Chen, H.L., Chen, W.T. And Lin, Y.L., 2016. Earned Value Project Management: Improving
The Predictive Power of Planned Value. International Journal of Project Management, 34(1),
Pp.22-29.
Hazır, Ö., 2015. A Review of Analytical Models, Approaches and Decision Support Tools In
Project Monitoring And Control. International Journal of Project Management, 33(4), Pp.808-
815.
Iyer, K.C. And Banerjee, P.S., 2016. Measuring and Benchmarking Managerial Efficiency of
Project Execution Schedule Performance. International Journal of Project Management, 34(2),
Pp.219-236.
Klakegg, O.J. And Lichtenberg, S., 2016. Successive Cost Estimation–Successful Budgeting of
Major Projects. Procedia-Social and Behavioral Sciences, 226, Pp.176-183.

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Kumbhar, M.P.D., Desai, D.B. And Gupta, A.K., 2017. Role of Project Management
Consultancy (PMC) And Its Effectiveness in Construction Industry. Imperial Journal of
Interdisciplinary Research, 3(12).
Laura, C.S. And Vicente, D.C., 2014. Life-Cycle Cost Analysis of Floating Offshore Wind
Farms. Renewable Energy, 66, Pp.41-48.
Mcclory, S., Read, M. And Labib, A., 2017. Conceptualizing The Lessons-Learned Process in
Project Management: Towards A Triple-Loop Learning Framework. International Journal of
Project Management, 35(7), Pp.1322-1335.
Mir, F.A. And Pinnington, A.H., 2014. Exploring The Value of Project Management: Linking
Project Management Performance and Project Success. International Journal of Project
Management, 32(2), Pp.202-217.
Serrador, P. And Pinto, J.K., 2015. Does Agile Work? —A Quantitative Analysis of Agile
Project Success. International Journal of Project Management, 33(5), Pp.1040-1051.
Serrador, P. And Turner, R., 2015. The Relationship Between Project Success and Project
Efficiency. Project Management Journal, 46(1), Pp.30-39.
Shafiee, M., Brennan, F. And Espinosa, I.A., 2016. A Parametric Whole Life Cost Model for
Offshore Wind Farms. The International Journal of Life Cycle Assessment, 21(7), Pp.961-975.
Tripathi, A.K., 2017. Impact of Technology Life Cycle On Alliance Governance Structure.
EVIDENCE BASED MANAGEMENT, P.293.