A computer-based information system for project cost management

Abstract

ISCOL Limited is currently developing, for a bulk chemical manufacturer, a computer-based information system to assist with the cost management of plant construction projects. Effective project management depends on the availability of the right information at the right time. The information available must match the opportunities to take control action. For the projects to be served by the system, these opportunities are greatest at the beginning and diminish relatively rapidly as development proceeds. In our work we have distinguished between the information requirements in the early, intermediate and advanced stages of project development and our system design incorporates monitoring procedures—design monitoring, outline cost monitoring and detailed cost monitoring—appropriate to each of these. Design monitoring is to be implemented as a hybrid system—a mixture of manual information gathering procedures combined with the use of a computerised cost estimating model. Outline and detailed cost monitoring are to involve extensive use of computers. A new mini-computer system is to be installed to collect and report cost information from a variety of sources which include other computer systems, both internal to the company and external. In the design of the computer system, emphasis has been put on the ready availability of appropriate information. Much of the work of information collection and report compilation which is currently done manually will be mechanised. This will not only improve the accuracy, timeliness and accessibility of information provision, but it will enable better utilisation to be made of the time and skill of cost engineers.