1. Cost Management Process MONTH DAY, YEAR

2. Purpose and Definition
The Cost Management Process provides:
a structured approach for managing and tracking costs at a project and overall IT level
a means to assure that elements which adversely impact budget are addressed in a proactive manner

3. Guiding Principles
To ensure efficiency in the process, the following will serve as guiding principles:
A cost estimate using the Estimator Model should be provided for all projects before final project approval
The Project Management Team and Sponsors shall serve as champions to ensure compliance of cost management across the project
Costs should be proactively communicated to and managed with executive management on a quarterly basis, at a minimum
Utilization of a Time & Attendance tool for time and cost management is preferred and will minimize overheard

4. Cost Management Process

5. Process Steps Ref ID Process Step Description Input/Output
Time Horizon
Owner 1
Develop IT Estimate (Estimator Model)
Using the defined template, develop an IT Estimate, using the Estimator Model, for the entirety of the project
Input: Cost elements
Output: IT Estimate
Discovery
Project Manager/
Team Lead 2
Create ROI (if applicable)
If the project warrants, a ROI analysis will be performed using the Estimator Model template approved template
Input: IT Estimate
Output: ROI 3
Review IT Estimate and ROI with Sponsors for Approval
The Team Lead will review the findings of the estimate and ROI with the Project Manager for approval. If accepted, the project will move to the Plan & Analyze Phase for continued project execution. If rejected, the project work with terminate
Input: IT Estimate, ROI
Output: Project Approval 4
Define WBS
Using the defined template, a WBS will be established for the project to an appropriate tracking level
Input: N/A
Output: WBS
Plan & Analyze
Project Manager 5
Load WBS into System of Record
The WBS will be loaded into the system of record for centralized tracking
Input: WBS
Output: WBS (stored) 6
Define Initial Actuals/Forecast Report
Using the data in the approved IT estimate and ROI, the initial actuals/forecast report will be populated
Input: IT Estimate
Output: Actuals/Forecast Report 7
Maintain Time and Cost in Tracking Tool
On a period that is deemed appropriate (weekly or monthly) time and costs will be captured in the appropriate tool and extracts generated as appropriate
Input: Time/Costs
Output: Automated Time/Cost Tracking
Manage
Project Team 8
Update Monthly Actuals/Forecast Report
On a monthly basis, costs will be extracted from the system of record to update the Actuals/Forecast report for the period
Input: Actual Costs
Output: Updated Actuals/Forecast Report

6. Process Steps cont. Ref ID Process Step Description Deliverable I/O
Time Horizon
Owner 9
Review Actuals/Forecast and Action Where Appropriate
The Project Manager will conduct a monthly review to ensure costs are remaining in line. If costs have escalated beyond tolerance, an action plan will be established and monitored
Input: Actuals/Forecast Report
Output: Reviewd Actuals/Forecast Report
Manage
Project Manager 10
Complete Quarter Lock
At the end of the quarter in addition to the monthly actuals/forecast report, a Quarter Lock report will be developed. The Team lead will provide estimates for the upcoming quarter. The initial quarter lock figures will be those from the IT Estimate. If it is not the end of the quarter, exit Cost Management process
Input: Project Costs
Output: Quarter Lock 11
Review Quarter Lock and Action Where Appropriate
If there are significant changes to the upcoming quarter costs, the Project Manager must review causes and approve before proceeding. If overages are approved and action plan will be put in place to tightly manage cost overuns in the upcoming quarter
Input: Quarter Lock
Output: Reviewed/ approved Quarter Lock

7. Cost Management Forums
Costs will be reviewed and managed based on the following schedule
Timing
Meeting
Cost Mgmt Activities
Monthly
Weekly Team Meeting
Review monthly forecast/actual reports across projects
Quarterly
Review Quarterly lock estimates for projects
Biweekly or Monthly
Executing Steering Committee Meeting
Review completed IT estimates presented for approval
Review project ROI, as appropriate
Review current state (monthly and quarterly planned vs. actuals)

8. Key Roles & Responsibilities
There are several key roles and responsibilities necessary to ensure effectiveness of the Quality Review Process:
Role
Responsibility
Project Manager/
Team Leads
Provide timely project cost tracking on a monthly and quarterly basis
Ensure a project estimate is completed prior to initiation of project work
Drive completion of ROI, as applicable
Ensure compliance to cost management procedures
Team Members
Provide input to cost components for estimate, monthly and quarterly tracking and ROI
Project
Review and approved IT estimates
Review/assess cost deliverables across projects and mitigate risks
Consolidate costs across the projects for an enterprise view
Provide consolidated cost reporting to executive management

9. For additional information on this process, please contact…
Contact Information
For additional information on this process, please contact…
Contact Name
Phone
Primary
Secondary