ABSTRACT
Introduction As in many project management decision areas, the process of cost planning is both simple and complex. Yes, it is possible to mechanically calculate resource costs for the project using reasonably straightforward techniques, but that simple view may not be either adequate for all concerned or represent an accurate cost picture. For example, accountants look at resources (money) for the enterprise in much more complex ways than the laymen. Likewise, team members are more concerned with the actual expenditures since that represents one of their basic control measures. The PM must understand these variable views of budget, as well as those needed to manage the project. Likewise, he has to deal with various other cost-related considerations in order to fulfill his responsibility to the organization. Previous discussions have taken a peel the onion view to the project management process to explain sequences or phases of the process. That seems even more appropriate here. Let us start this process by describing the labor side of resource management, then work on expanding that segment into a view that shows more of the total cost picture. For the first segment, we will focus on defining some key terms related to the direct cost of work and planning packages.
