Technical PM-competences (Fach) / 1.13 Cost/ 3.10 Finance (Lektion)

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• Summary Cost planning is a display of the anticipated costs necessary for the execution of the project for each work package or activity. Costs can be divided into different types such as personnel costs, material costs, service costs. Costs can be distributed differently for each period. They can be distributed towards the start, end or evenly.
• Costs Values of the goods used to create services Can arise along the whole öife cycle of a product(Development costs, Investment costs, Manufacturing costs, Operating costs and Disposal costs)
• Costs centres Is the place where costs are created (e.g. department xy)
• Cost units Are the products or services which finally carry the costs (e.g. car xy)
• Project financing management Ensures that the project management is informed at all times about how much money is needed for each phase
• How to develop a cost plan Step: Determine types of costs and rates(personnel costs, resource costs, material costs, capital costs, calculated risk/risk surcharge) Step: Assign costs to activity/ work package Step: Comparison by means of cost line & cost accumulation line Step: Optimisation: Balancing out excessive costs(moving costs in the next business year, use cheaper resources, use more productive resources etc.)
• Options for cost distribution Distributed towards the start: All costs arise in the beginning of the activity Distributed evenly: The costs arise evenly of the course of the activity Distributed towards the end: The costs arise towards the end of the acitivity
• Cost Line The cost line (histogram) shows the capital requirements/ finacial needs at certain periods in the project and builds the basis for the determination and calculation of capital requirements. The cost line is graphic display of the period costs per time unit of a project.
• Cost Accumulation Line The cost accumulation line shows how the cost adds up and serves as a basis for measurment of progress and the should/ is comparison. The cost accumulation line is a graphic display of the accumulated costs per time of a project.

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