Project managers, cash flow, profit and loss balance analysis, shareholder return (return to shareholder) are all important concepts. Profit equals revenue minus costs, only results of the project revenues exceed project cost?? Including the creation and production cost of the project results and management results of the project cost?? Time, enterprises can increase economic value. Understand the cost impact of decisions on the economic value is important, because value-added economic value is an index measure of success.
Emphasize this point will help project managers to focus on projects that affect the project cost and the cost of making the post. Results of the project characteristics affect the project cost, as the additional features need to invest time and resources. The same characteristics also affect production costs, because additional, complex features are usually more expensive to manufacture. Project management factors?? Such as the core team of full-time team members, so that project members living together, fast access to customer and end user representatives and so are the other project costs.
Understand and use the concept of the project cost of business decision-making, the project manager to avoid the arbitrary and the only way of its budget. In the past, project managers often been to reduce costs as the core of the budget constraints, the creative and efficient decision-making are smothered. The reason why this happens, because senior managers do not believe that project managers can maximize the benefits to business decision-making as the starting point. Most project managers are technical people, not accustomed to from the perspective of the economic value of the problem. If the project manager learn to make the maximum return value to shareholders the cost of decision-making, the budget will no longer be necessary for the. Project manager can do for enterprises based on the best free to manage?? Not on the budget is based on what is best. This will enable projects and enterprises more successful, because a good financial decision-making is also a good business decision, this little bell situation. Therefore, to promote the progress of project management is important that project managers must know how to calculate the economic value of project costs after the project is how it affects the cost of the economic value of this indicator.