Project Financial Management - 5 Tips for Good Project Cost Control

The video provides five tips for effective project financial management. It emphasizes engaging stakeholders in the business case, using accurate estimation techniques, implementing a stage gate process for budget control, balancing cost and risk in procurement, and understanding Earned Value Management. These tips are derived from a Kindle exclusive ebook on Project Financial Management.

What is the primary goal when engaging stakeholders in the business case process?

• To ensure they provide financial resources

• To get their commitment to the final business case

• To have them lead the project

• To make them responsible for project failures

Why is it recommended to estimate project schedules and budgets at least twice?

• To save time

• To increase confidence in the estimates

• To reduce project scope

• To avoid stakeholder involvement

What is the purpose of a Red Team review in project estimation?

• To identify errors and improve estimates

• To finalize the project budget

• To approve the project timeline

• To train new team members

What is the main advantage of using a stage gate process in budget management?

• It eliminates the need for stakeholder meetings

• It ensures budget release aligns with project progress

• It focuses solely on cost reduction

• It allows for unlimited budget release

What are the two main purposes of the procurement process?

• To increase stakeholder engagement and reduce scope

• To minimize cost and minimize risk

• To maximize profit and minimize time

• To enhance project visibility and reduce complexity

What is a key challenge in Earned Value Management?

• Understanding complex mathematical formulas

• Training all team members in EVM

• Reducing project timelines

• Finding the right metrics to measure

What balance must be achieved in a good procurement strategy?

• Between stakeholder satisfaction and project scope

• Between risk minimization and cost minimization

• Between speed and accuracy

• Between innovation and tradition