Program Management - Cost Management

While DSA recognizes the value of building a project on top of a strong footer, the project plan, we are also aware of the value received from management activities required during the course of the project.

Cost Control

Too many people have a poor definition of cost control. Cost control is not only the monitoring of costs and recording of perhaps massive quantities of data, but also analysis of the data to take corrective action before it is too late.

Cost control implies good cost management, which must include:

Cost Estimating
Cost accounting
Project Cash Flow
Earned Value Reporting

DSA’s cost control techniques facilitate the following:

Derivation of output specifications (project objectives)
Delineation of required activities (work)
Coordination and communication between organizational units
Determination of type, amount, and timing of necessary resources
Recognition of high-risk elements and assessment of uncertainties
Suggestions of alternative courses of action
Realization of effect of resource level changes on schedule and output performance
Measurement and reporting of genuine progress
Identification of potential problems
Basis for problem solving, decision making, and corrective action
Assurance of coupling between planning and control

DSA’s disciplined use of cost control is designed to put pressure on the project manager to perform exceptionally good project planning so that changes will be minimized.

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