As a Project Manager, your ability to get the best out of the matrix of activities of your project, make important project decisions, and manage how roles are delegated are what stand you out [...]
Project Cost Management Software
Cost Management Tool
Planning costs and allocating expenses daily will help you control how your projects really operate. Adjust your plans as often as needed with this cost management tool. Take effective decisions so your projects evolve as intended.
“Blessed is he who has talent and money because he will use it well”
Menandro from Athenas 342 bC – 292 bC.
The estimate: a reality of our own invention
How much does your project really cost? Materialising the plans, sketches and resource lists in figures and managing costs is an art in itself. With the calculation of the a first budget, we are increasing our client’s value, while we try to reduce product and service prices to a minimum. A genuinely admirable skill and a situation which “is the most optimistic prediction with a probability other than zero of being right”, according to software engineer Tom DeMarco.
This is why a suitable calculation of project costs in advance is so important – it determines how the project will evolve. It is keenly influential and neither companies nor individuals work in the same way. That’s why it will be a calculation from a reality of our own invention.
In the end, it is all about numbers. After all, there is no project that is not bound by economic constraints, just like no project exists that is not limited by time or resources available.
What does managing the costs of your project mean?
Making estimations and measuring their impact is crucial but what things do you need to know before managing costs?
- Make no mistake: Planning = estimating, while allocating = real cost assignment.
- Plan and estimate your costs based on the objectives established.
- Reset your estimations continually, as the difference between planned and estimated costs increases.
- Assign roles and permission to identify the limits and obligations of the people in your work team.
- Simulate various scenarios and check their impact on the project before implementing changes.
How to plan your day-to-day costs
- Plan your project while doing cost estimates for each activity.
- Share and compare resource use as estimated with those in charge of each activity.
- Assign responsibilities, permission and implement a cost monitoring protocol to key team members.
- Implement planning and start to allocate both hours used and real expenses.
- Create and allocate unforeseen resources and costs, even where not considered among the initial estimations.
- Regularly quantify costs and simulate different scenarios to counter the differences between what is estimated and what is allocated.
- Regularly adjust the budget and evaluate it at project milestones or key points, in order to follow the expectations of the project runners.
Sinnaps will help manage your project costs
Project management as you knew it is being revolutionised by a new generation of tools
How to manage your resources with Sinnaps
This is one of the most important parts of project management. Knowing which resources you need and how much they will cost the project in time and budget is one of the most complicated tasks for the ‘Project Manager’. Unfortunately, however, cost/resource management is, at the same time, the most underestimated of all responsibilities.
The project management tool will make it into our chief ally. We will count on it to ask you what resources you need, how long before they will be used up and what budget is required for them. So, the on-line software will answer:
- What do we need?
- When can we have this resource?
- What will the total cost be with all available resources?
- How will this modification affect the scheduling?
- Are we wasting time thinking about these resources?
With Sinnaps, you just add the resources you need to each activity and give each activity a duration. Your tool will automatically tell you the overall impact on the project. The fact is the software is designed to calculate the critical path, bottlenecks and optimal work flow in order to close your project as successfully as possible.