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Evidence Guide: BSBPMG403A - Apply cost management techniques

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

BSBPMG403A - Apply cost management techniques

What evidence can you provide to prove your understanding of each of the following citeria?

Assist with the development of the project budget

  1. Determine estimated costs for tasks and activities and communicate these costs to others for inclusion in project budget
  2. Map costs against duration/effort and resources allocated, and communicate to project manager for inclusion in the project plan, budget and expenditure flow
  3. Contribute to the development of cost management strategies and processes, and financial authorisation within delegated authority
Determine estimated costs for tasks and activities and communicate these costs to others for inclusion in project budget

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Map costs against duration/effort and resources allocated, and communicate to project manager for inclusion in the project plan, budget and expenditure flow

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contribute to the development of cost management strategies and processes, and financial authorisation within delegated authority

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor project costs

  1. Monitor income and expenditure against the agreed project plan and budgets to facilitate cost management throughout the project life cycle
  2. Use established cost management methods, techniques and tools to identify and report variations in the budget to higher project authority for action
  3. Implement and monitor agreed actions and report progress to others to ensure cost objectives are achieved throughout the project life cycle
Monitor income and expenditure against the agreed project plan and budgets to facilitate cost management throughout the project life cycle

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Use established cost management methods, techniques and tools to identify and report variations in the budget to higher project authority for action

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement and monitor agreed actions and report progress to others to ensure cost objectives are achieved throughout the project life cycle

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contribute to cost finalisation process

  1. Provide assistance in the finalisation and transfer of financial assets, liabilities and records to the client or relevant operational support agency
  2. Provide assistance in the review of project outcomes by use of project records, to determine the effectiveness of initial and subsequent cost management strategies and processes
  3. Report cost management issues and responses to project/program manager for application in future projects
Provide assistance in the finalisation and transfer of financial assets, liabilities and records to the client or relevant operational support agency

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide assistance in the review of project outcomes by use of project records, to determine the effectiveness of initial and subsequent cost management strategies and processes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Report cost management issues and responses to project/program manager for application in future projects

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

application of cost management techniques in relation to budgets for multiple complex projects

knowledge of cost management tools and techniques.

Context of and specific resources for assessment

Assessment must ensure:

access to examples of project management budgets and related financial documentation

access to evidence or project records of team member involvement in financial management processes.

Method of assessment

A range of assessment methods should be used to assess practical skill and knowledge. The following assessment methods are appropriate for this unit:

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

analysis of responses addressing different project cost management scenarios

oral or written questioning to assess knowledge of strategies for managing project costs

analysis of budgets and costing prepared by the candidate

review of communication to others of estimated costs for tasks and activities for inclusion in project budget

evaluation of reporting on cost management issues and responses to project/program manager.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

other units from the Certificate IV in Project Management.

Required Skills and Knowledge

Required skills

numeracy skills to check and interpret project budgets

financial management skills to develop project budgets, monitor costs and report on cost management

technology skills to use financial management software to develop and monitor project budgets.

Required knowledge

budgeting processes and their relationship to the project life cycle

cost management tools and techniques.

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Estimated costs may refer to:

application and registration fees for intellectual property (IP) and patents etc.

contingency (as outcome of risk assessment)

facilities

labour

material

project management overheads

travel and subsistence

Others may include:

higher project authority

project manager

project specialists or other personnel

team members

Cost management strategies and processes may include:

communication with stakeholders, dispute resolution and modification procedures

implementation of financial control mechanisms

measurement of actual progress against planned milestones

recording and reporting of variations

Delegated authority means:

conducted under limited guidance and supervision

subject to frequent change in a multi-disciplinary environment

within agreed authorisation and limits

within established organisational framework, procedures and routines

Project records may include:

cost management lessons learned

cost verification and validation documentation

input to cost management plans

invoice and payment records

lists of potential costs

project and/or organisation files and records

reports to relevant stakeholders