I have been studying Project Management with pleasure despite the fact that this subject is rather hard and complex. Project management is large, complex topic, because in order to manage projects properly, impeccable knowledge in this area is needed. Nevertheless, I think that I have enough passion to learn this course and become rather good professional in this area. I think that project managements is a set of interrelated activities designed to achieve in a given period of time and with the defined budget, clearly set objectives. Moreover, it is important to note that project management is the universal language of communication among professionals of any industry, well-proven methodology and successfully applied methods and means of implementing the project, based on the extensive use of modern computer technology (Lock, 2007).
Last topic I have discovered for myself was project cost management. This topic is one of the most important because effective money management determine the quality and speed of the project realisation. Project cost management involves tree stages: cost estimation, budget determination, costs control. I think that this topic is rather important for even ordinary person, because it helps to develop different skills that are needed for the effective and efficient life. I think that all these tree stages can be seen not only as a part of project management subject, but also can be effectively used in a day-to-day life. This increases level of financial intelligence, which is being a key of the successful business and life management.
I think that cost estimation is the process of determining the approximate cost of the resources needed to perform the project. Right cost estimation is also day to day activity that people perform. Cost estimation is how people manage money that they have, how they form their cash flow and how they manage their extra money. I have discovered that costs include inputs, outputs and money for techniques and technologies. The knowledge that I have obtained understanding what the cost estimation is, why it is important and how it is done, will help me to understand real cost of the things I want to obtain or projects I want to manage.
Then I have understood what budget is and I think that it is the process of adding valuations of individual operations or work packages to form a baseline for the authorized amount. Formed effectively budget that would contain all cost and all needed resources means that the project and its management would be secured by everything needed for the project efficient accomplishment and all resources would be able at the time that is needed for the project. However, to have budget means that you have the strict amount of money that would be used for the expenditures covering. And if the use would be effective the remaining money can be used, for example, for the investing. The skills that I obtained during the budget formation topic I would use in my day to day life in order to manage my money effectively and not to waste them.
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Cost management, the next step of project cost management, is the process of monitoring the status of the project to adjust the budget of the project and the changes in the baseline cost (Kuehn, 2011). It is rather essential to know how much money you have, how much should be used for the expenditures covering and how much can be used for the other purposes. The effective cost management is rather important for anyone who prefers to be aware of everything that is going with his/her finance and life.
I think that it is rather important to be financial intelligent and project cost management topic has helped me to understand this. I think that during this class studying I have obtained necessary skills for my day to day life and I am sure that I will obtain even more knowledge that would help me to become effective and efficient. This class has impacted my outlook and improved my financial vision.
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