Lecture Information technology project management (Sixth Edition): Chapter 7 - Kathy Schwalbe

Chapter 7 - Project cost management. After reading this chapter, you will be able to: Understand the importance of project cost management; explain basic project cost management principles, concepts, and terms; discuss different types of cost estimates and methods for preparing them;. | Information Technology Project Management, Sixth Edition Note: See the text itself for full citations. Understand the importance of project cost management Explain basic project cost management principles, concepts, and terms Discuss different types of cost estimates and methods for preparing them Information Technology Project Management, Sixth Edition Understand the processes involved in cost budgeting and preparing a cost estimate and budget for an information technology project Understand the benefits of earned value management and project portfolio management to assist in cost control Describe how project management software can assist in project cost management Information Technology Project Management, Sixth Edition IT projects have a poor track record for meeting budget goals The CHAOS studies found the average cost overrun (the additional percentage or dollar amount by which actual costs exceed estimates) ranged from 180 percent in 1994 to 56 percent in 2004; other studies found overruns to be 33-34 percent Information Technology Project Management, Sixth Edition The . government, especially the Internal Revenue Service (IRS), continues to provide examples of how not to manage costs A series of project failures by the IRS in the 1990s cost taxpayers more than $50 billion a year In 2006, the IRS was in the news for a botched upgrade to its fraud-detection software, costing $318 million in fraudulent refunds that didn’t get caught A 2008 Government Accountability Office (GAO) report stated that more than 400 . government agency IT projects, worth an estimated $25 billion, suffer from poor planning and underperformance The United Kingdom’s National Health Service IT modernization program was called the greatest IT disaster in history with an estimated $26 billion overrun Information Technology Project Management, Sixth Edition Cost is a resource sacrificed or foregone to achieve a specific objective or something given up in exchange | Information Technology Project Management, Sixth Edition Note: See the text itself for full citations. Understand the importance of project cost management Explain basic project cost management principles, concepts, and terms Discuss different types of cost estimates and methods for preparing them Information Technology Project Management, Sixth Edition Understand the processes involved in cost budgeting and preparing a cost estimate and budget for an information technology project Understand the benefits of earned value management and project portfolio management to assist in cost control Describe how project management software can assist in project cost management Information Technology Project Management, Sixth Edition IT projects have a poor track record for meeting budget goals The CHAOS studies found the average cost overrun (the additional percentage or dollar amount by which actual costs exceed estimates) ranged from 180 percent in 1994 to 56 percent in 2004; .

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