Cost Control and Performance
The economic environment involves increasingly tight budgets for projects, therefore, suitable monitoring of the costs and the performance is necessary.
PROPRISM can help you in the definition of your budget and its control, the implementation of the technique of acquired value (Earned Value Methodology).
Cost control is essential in the execution of a project for reasons of efficiency as well as being able to estimate the projected cost at the end of the project.
We apply the fundamentals in controlling costs by initiating a reference budget. This budget is derived from the cost estimate and will allow for monitoring, analysis of variance and calculation of performance as well as for the progress of the project.
Earned Value Management and Changes
Closely linked to the schedule, the integration of costs allows the establishment of cash flow, expenditure and performance curves via the comparison of work done and work planned.
We use the earned value to see if the project is within the budget or is likely to deviate.
Project control becomes increasingly important as changes occur due to unforeseen conditions, modifications… Any modifications will be mapped out to determine the additional costs.
Analysis makes it possible to warn management of a potential risk of completing the project on time and within the budget.
Probability & budget forecast
The probability calculation, integrating the risks, is carried out via the Monte-Carlo simulation methodology to determine the probability of the cost at the end of the project. This method adds significant value by providing visibility and credibility to the cost control process.