Project Cost Management by Ray Frohnhoefer & Inham Hassen

Author:Ray Frohnhoefer & Inham Hassen
Language: eng
Format: epub
Tags: project cost management, project cost control, cost accounting, project management, project cost estimating, project estimating and cost management, project budget management
Publisher: PPC Group, LLC
Published: 2022-05-31T00:00:00+00:00

Budgets and Rolling Wave Planning

Rolling wave planning is an incremental approach to project planning. With rolling wave planning, near-term work is planned in detail, while future work is only scheduled at a high level. As time passes, the plan continues to elaborate on near-term work further.

Rolling wave planning is ideal for long-term, complex projects, such as constructing an intranational, international, or transnational highway network. However, it can be used whenever uncertainty is in a project’s key components, such as schedule and budget. It is also similar to how Scrum operates for Agile projects, where each iteration determines costs and schedules.

To be successful with budgeting requires several things. First, robust program management must be in place to ensure all the components and projects are operating and spending as effectively as possible. Second, this form of planning usually works best in environments where the budget is not a significant concern or regular funding intervals occur. Regular intervals enable funders and projects periods of reconciliation (Mill 2020).

Adaptive projects with many unknowns often necessitate rolling wave planning. On the other hand, rolling wave planning is usually unnecessary if a project is predictive. The important lesson is that if a project is short or budget accuracy is required, rolling wave planning is not a recommended approach. Furthermore, Agile is not recommended for these circumstances because of its similarity to rolling wave planning.

Chapter Summary

Definition of budget

Categories of costs People, equipment, and material

Direct vs. indirect

Fixed vs. variable

Tangible vs. intangible

Operational costs

Sunk costs

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.