Now in a project cost management, knowledge area, which deals with the money, whatever you do in your life, whether it's your personal life, it's your professional life, everything will definitely come down to the money that you need to spend, to do a task on a project to buy a car in your life, to finance the kids education, to finance a leasing for the home, all this is these are projects in your life, personal life in your professional life and whatever we that time that you have agreed upon, you will need to have money for it. This is where we this is the knowledge area that will first help us estimate that and then we will see when do we need it and then we will look into Word whether the word money flow in which is a cash flow in is supporting our plan or not, or do we need to adjust it?

Same is the case in our personal life we have our salaries, which comes in the beginning of the month, then based on the salary, we plan our month, and then if there are expenses which are two or three big expenses, we sometime move one into the next month or do something else. This and also as in our dear life, we plan on a higher level that okay the car that we are going to buy is gonna cost us 30 K, and over the period of five years, this is the high level figure, top down approach and electrics approach. Usually the cars are like that. But then you need to go into the detail exactly that how much how much money you want every month. And do you have that finances available? or not, that is where the work package level comes in that is where the work breakdown structure comes in.

All the knowledge areas are dependent on the work breakdown structure, whether you are doing scoping whether you are doing scheduling costing risk communication resources, every knowledge area expects you that you have done a good job at defining a work breakdown structure, which is a visualization of deliverables of project scope statement, all the deliverables that you need to deliver all the work that you are supposed to do on the project is part part of the work breakdown structure. So, if you have done that go to our Breakdown Structure job, then you can take the work package level when you are into a costing you are talking about scheduling, you are talking about duration, you are talking about what kind of resources that you will you would be requiring all these things when you have that at all the risk on activities when you have all these parameters.

With you now, you can work in the car on cost estimates. And again, remember that some time cost estimates well as I told you will go beyond your monthly pay, then what will you do? You might need to go back and delay something or pull back something or do some adjustments. So, this is all what is the part of the project. So, we will create budgets, we will do estimations, we will define funding limits, we will define the activities which cannot be delayed, we will define at what level what kind of estimations we are expecting based on both verbatim structure duration, critical path and the total schedule. It is very important to understand that critical path does not mean all the critical activities on the project which are required success of a project you may have a critical activity completely independent at somewhere else, which is required to have an activity project successful critical path only mean that is the longest path or longest duration and the shortest period of time when you can deliver the project before that you cannot deliver the project.

So, we have a fair idea about schedules co was made on structure resources activities. And now, based on all this, we are not going we are not going to start the estimation first then we are not going then we will do the budgeting. Then we will see how much we need the budget budget over time. And this is all what we will be looking at. First we will plan how should we do it what is our variances Why should we have those variances, then what are the templates that we will be using and then we will make sure that when the execution is happening, people the team the resources the stakeholder that are Working, they are following our plan. And if there are trends which are of dangerous nature or the trends which are showing us that we are going to go beyond our budgets, forecasts, then we need to take some corrective actions preventive actions here we will also do the results analysis, contingency plans known Unknown, Unknown unknown management results.

This is the general introduction for project cost management. We'll meet you in the next session. Thank you. Thank you very much.