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Editor's Note: This is the second article in a series of monthly articles from Kildrummy, a global project cost management solution provider. Valerie Behrendt, marketing manager for Kildrummy, explains the series as follows: "As a vendor, I've supported AACE International since 1997, and in turn have enjoyed many of the benefits this organization brings to the project cost community: valuable contacts and presentations at the local level, and the yearly conference with its opportunity' to participate, network, and learn from the presentations and papers AACE International provides. The value of this education is considerable, and we at Kildrummy are very pleased to contribute to this shared body of knowledge with a white paper series we've created especially for AACE International: Cost Management: Roadmap to Project Success. The articles deal with such topics as best practices, lessons learned, the benefits of in-house cost management expertise, standardization, and selecting the right toolset for the job at hand which address AACE International's commitment to total cost management. Kildrummy's mission is to add value to your projects through cost management solutions, including software, services, and knowledge sharing."
How many times have you reached into your toolbox and, not able to find your hammer, grabbed a crescent wrench to bang a nail into place? While a crescent wrench can be used to bang a nail more or less straight, it clearly is not the right tool for the job, and you wouldn't consider nsing a wrench to hammer a new roof on your house. Having the right tools on projects is crucial.
We expect to use the right tool for a job when it comes to the relatively simple operation of hammering a nail, yet many of us are still attempting to use a scheduling application to perform cost functionality. Of course, makers of scheduling applications will argue that these systems do perform some cost functions. But what does this mean? How much cost management is reasonably performed in a scheduling application and for what size project? Are the two approaches different in type, or merely in the degree to which they address cost control?
To better understand the pros and cons of each approach, we need to review the differing philosophies underlying cost and schedule and the difference between...