Question

Discuss briefly any three cost reduction methods in project management

Answer 1

1) Planning the project budget -
You need to make a budget at the beginning of the planning session, regard to the project in hand.It is that budget that would help you for all payments that need to be made and costs that you will incur during the project research and critical thinking.
Like any other budget you would always have to leave room for adjustments as the costs may not remain the same right through the period of subject.Adhering the project budget at all times is key to the profit from project.

2)Effective Time management-
Another effective technique would be effective time management. Although this technique does apply to various management areas ,it is very important regard to project cost control.
The reason for this is that the cost of the project could keep rising if you are unable to meet the project deadlines;the longer the project is dragged on for, the higher the cost incurred which effectively means that the budget will be exceeded.
The project manager would need to constantly remind his/her team of important deadlines of the project in order to ensure the work is completed on time.
3)Project change control -
Project change control is yet another vital technique. Change control systems are essential to take into account any potential changes that could occur during the course of project.
This is due to the fact that each change to the scope of the project will have an impact on the deliverables so the changes may increase project cost by increasing the effort needed for the project