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Mr. Johnson

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Submitted By shaunstanley
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PROJECT COST MANAGEMENT Juan Gonzales, a systems analyst and network specialist for a waterworks department in a Mexican city, had always aspired to be a project manager to expand his knowledge. A friend of Juan’s invited him to attend a project review meeting that included a project that Juan was interested in. This project was for the Surveyor Pro information system which would assist government surveyors to do their job more effectively by providing additional tools. While Juan was in attendance, he quickly learned that the meeting focused on budget related conversations rather than the actual project. The primary issue with this case is that Juan doesn’t have any background in cost management. Juan sees how important the government officials are reviewing other projects cost management and he should understand how cost management plays into being a project manager. This could also add a new facet to Juan’s career. And while time and resource issues are always noteworthy, the factor that often has the biggest influence on project success or disaster is whether or not the project team can – or cannot – enhance project outputs with effective cost management. The government officials are concerned with cost management because IT projects have a poor track record for meeting goals. According to a 1995 report from The Standish Group, we spend more $250 billion each year on IT projects in the United States. The average cost ranges from $2 million for a large company, to $400 thousand for a small company. In order to complete their projects on budget and in scope, project managers face many challenges that they must overcome. Cost management is often the one of the most
PROJECT COST MANAGEMENT difficult problems to solve and are the ones that pose the greatest risks and threats. Solutions to the issues could include Juan conducting studies

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