Does India Inc. Have a Diversity Problem? Should Indian Firms Do More for Inclusivity?
What Do Recent Events Indicate About How India Inc. Has a Diversity Problem? It is a well known fact that Indian Corporates often pay lip service to Diversity and Inclusivity and most D&I initiatives often exist on paper with little to show in terms of actual achievements. Apart from culturally shaped attitudes towards women and […]
Why Do Exports Matter?
Countries all over the world try to promote exports. Almost every country offers financial incentives to exporters. Countries like China have Special Economic Zones wherein exporters are not charged any tax. Similarly, other countries have special banks and insurance agencies promoted by the government to facilitate export growth. This brings us to the importance of […]
The Pitfalls of the Canadian Healthcare System
The Canadian healthcare system was known to be the best amongst all the developing countries in the world. This is because it provided its citizens with the advantages of universal health care. The Canadians have always taken pride in the fact that their government considers healthcare to be a fundamental human right and is willing […]
Information System for Talent Management
Introduction Information technology and system have changed the way business gets conducted. Every decision-making process is enhanced with utilization of an information system. Information systems have been deployed by human-resource team to enhance employee employer relationship. Companies require great deal of contribution from employee for its success though information systems have made several processes automated. […]
Business Process Improvement – Preparation Stage
Business Process Improvement exercise is undertaken by organizations to improve their operational efficiencies, to remove redundant processes, eliminate wastage as well as to adapt to customer expectations and thus augments its operations to meet with the expectations. BPI programs aim to bring about permanent changes to the processes through a sustained and planned implementation program. […]
The following are the costs associated with the projects.
Any costs that are directly attributable to the work on the project. These can include the salaries paid to the resources, the billing rate of the resources and costs of the software and hardware that are used for building the website
These costs are spread out against many projects and cannot be linked to one project alone. These costs include those incurred in shared services like cost of office space, taxes paid by the organization and other services like secretarial and janitorial staff
Costs that change in proportion to the amount of time and material that are spent on produced in the project.
Costs that do not change with the timeline or progress of the project.
A cost be either Fixed or Variable; Direct or Indirect
The overhead costs for this project are the office setup and shared services. While the costs incurred in setting up the office space can be general overhead cost as it is a one-time cost and is borne by all the projects in the organization.
The project overhead costs are the costs incurred in the shared services such as secretarial staff and other services provide to the project and can be directly billable as such.
A time phased budget would include the costs incurred at each interval or milestone of the project. The milestones for this project would be requirements, design, coding, testing and implementation. The budget for the same would be the costs at each stage of the project.
The Budget at Completion or BAC should have all the components of the costs included like direct and indirect costs, fixed and variable costs etc along with the cost at each phase or milestone of the project.
The cost variance should be measured using Earned Value technique and this tool allows the manager to assess the completion of the project at each milestone according to the cost incurred and the value accrued till then. Variance between these two measures gives an accurate estimate of the health of the project.
The cumulative costs of the project are the ones that are incurred up to a specific phase or milestone of the project. It can be measured by using a Cost Performance Index or CPI which measures the ratio of the Earned value with regards to the Actual cost incurred on the project. As outlined above, all the costs that accumulate up to a particular phase can be called the cumulative costs of the project.
The cost management plan should include the plan for controlling the costs of the project. There should be a measurement of the costs involved and their variances tracked, if any. Any variance to the budget must be controlled by the controlling the impact of the cost changes.
Further, cost control can be done in the area of overhead costs and general and administrative expenses.
Your email address will not be published. Required fields are marked *
