Cost Management Knowledge Research Articles

A Qualitative Study on Artificial Intelligence and Its Impact on the Project Schedule, Cost and Risk Management Knowledge Areas as Presented in PMBOK®

The aim of this paper is to study the main areas in which artificial intelligence (AI) will impact the field of project management in relation to cost, risk and scheduling. The research model was based on a previous study of the ten project management knowledge areas presented in PMI’s PMBOK 6th edition, where project schedule, cost and risk management knowledge areas were identified as being the ones most likely to be affected by the development of AI. A group of graduates from a Master of Project Management program were assessed in an online questionnaire, reflecting the PMBOK’s elements of best practices and how AI will affect the project management profession in the future. Different elements of the three knowledge areas were considered to be affected more by AI than others. The schedule baseline is the element believed to be affected the most out of the project schedule management elements. For project cost management, the estimation of resource costs is believed to be affected the most. In the case of project risk management, the application of AI will have the strongest impact on the probability and impact formats.

A Qualitative Study on Artificial Intelligence and its Impact on the Project Schedule Cost and Risk Management Knowledge Areas as Presented in PMBOK®

The aim of this paper is to study the main areas in which Artificial Intelligence (AI) will impact the field of project management that relates to cost, risk and scheduling. The research model was based on a previous study of the ten project management knowledge areas presented in the PMI’s PMBOK 6th edition where project schedule-, cost- and risk management knowledge areas were identified as being the ones most likely to be affected by the development of AI. A group of experts that participated in the study agreed that AI will affect the project management profession in the future. Different elements of the three knowledge areas were considered to be affected more by AI than others. The schedule baseline is the element believed to be affected the most out of the project schedule management elements. For project cost management, the estimation of resource cost is believed to be affected the most. In the case of project risk management, the application of AI will have the strongest impact on the probability and impact format.

Project Management Maturity and Performance of Building Construction Projects in Myanmar

Maturity models are credited with raising project management awareness, but no conclusive evidence supports their use as a tool for performance enhancement in construction project settings. The present study thus examined the influence of time, cost, and quality management maturity on performance indices of building construction projects in Myanmar. The study further assessed how maturity in time, cost, and quality varied between public and private construction organizations. Four building construction projects, i.e., two operated by private construction organizations and two operated by public construction organizations in Myanmar, have been chosen for the data collection. The project manager and an individual from the upper management of each project were interviewed in three stages to obtain the maturity level. The performance indices of each project were evaluated quantitatively. The study’s findings revealed a positive relationship between project management maturity and project performance. Specifically, a higher time management maturity contributed to greater time performance, and elevated cost management maturity projected higher cost performance. Contrary to the expectations, the study could not find a significant relationship between quality management maturity and quality performance. The results further revealed that the average time management maturity of public construction organizations was significantly higher. Still, the average cost and quality management maturity were considerably lower than that of private construction organizations. The construction organizations aiming to enhance the project performance should focus on reaching a higher maturity in time and cost management knowledge areas.

The impact of management knowledge on project duration: a comparative study

Although various studies have been done on construction delays, there are limitations in identifying the management knowledge areas that contribute significantly to construction delays and compare them between countries. With this in mind, work has been done to classify the underlying causes of construction delays in to related management knowledge areas and to calculate their impact. According to the results, schedule and planning management knowledge is one of the top cause for delay in Ethiopia, followed by cost management knowledge and scope management knowledge, respectively. In Indian construction projects, cost management knowledge, schedule and planning management knowledge, and stakeholder management knowledge play significant role in delaying construction projects, while in the UK, scope management knowledge, quality management knowledge and stakeholder management knowledge play a significant role. In addition, in the three countries mentioned above, scope management knowledge has been identified as a common factor for the delay in construction projects.

THE EFFECT OF BUDGET PARTICIPATION ON MANAGERIAL PERFORMANCE WITH COST MANAGEMENT KNOWLEDGE AS A MODERATED VARIABLES

This study empirically examines the effect of budget participation on managerial performance and the moderating effect of cost management knowledge on the effect of budget participation on managerial performance. The population and sample in this study are middle and lower-level managers in manufacturing companies in East Java, Indonesia, who met the criteria. The sampling technique was convenience sampling with a sample of 83 people. The research hypothesis was tested using multivariable regression analysis. The results showed that the higher the level of budget participation, the higher the managerial performance. The high level of participation is accompanied by the high knowledge of managers about cost management affecting managerial performance. Thus, this research shows that budget participation affects managerial performance. Further research on the variable cost management knowledge found that knowledge of cost management as a quasi-moderator moderates the relationship between budget participation and managerial performance.

The Role of Cost Management Knowledge as Moderation: Participatory Budgeting, Clarity of Budget Objectives, Managerial Performance

This study aims to examine the effect of participatory budgeting and the clarity of budget targets on managerial performance with knowledge of cost management as a moderator at PT Pupuk Iskandar Muda (PT PIM). The study used data from all employees who have the positions of Assistant Vice President, Vice President, and Senior Vice President at the company PT Pupuk Iskandar Muda. The data collection technique is done by using a questionnaire. The data analysis method in this study uses Moderating Regression Analysis (MRA). Sample data collected were 52 samples from 63 or 82,5%. The results showed that participatory budgeting and clarity of budget targets had a significant effect on managerial performance and that managerial knowledge of cost management could moderate the effect of participatory budgets on managerial performance. On the other hand, this research shows that the knowledge of managerial cost management cannot moderate the effect of the clarity of budget targets on managerial performance.

Revival of MSMEs (Post COVID-19) - Strategy of CMAs

There has been an unprecedented slowdown due to Covid-19 and MSMEs are worst affected. Given their pivotal role in Indian economy, urgent measures need to be taken for their survival, revival and growth. Indian Government has taken various initiatives including Atma Nirbhar Package, however, still majority MSMEs are looking for timely guidance and hand holding at this critical phase. CMAs are known for rich experience in finance, domain expertise in cost management and sound knowledge of Indian regulatory mechanism. CMAs can play role as ‘Economic Warrior’ while offering customised strategy for revival of ailing MSMEs which will in turn boost up economic growth and help our grand nation to be ‘USD 5 Trillion’ economy soon.

The effect of organizational commitment and Cost management knowledge on the relationship between budget participation and managerial performance

The purpose of this study is to examine the effect of organizational commitment and cost management knowledge on the relationship between budget participation and managerial performance. The data used in this study collected by distributed questionnaires to 700 managers work in manufacturing companies in Indonesia. The sample used in this study consists of 98 managers who involve in budgetary participation. Data were analyzed by using the Structural Equation Model (SEM) based Partial Least Square (PLS) with WarpPLS 6.0 software. The result of this study represent that budgetary participation has a positive effect on managerial performance and cost management knowledge moderate the relationship between budgetary participation and managerial performance, while organizational commitment has no effect on the relationship between budgetary participation and managerial performance.

Effects of a Web-Based Cost Management Competency Enhancement Program for Nursing Students

The purpose of this study is to evaluate the application of a web-based cost management competency enhancement program (Web-CMCEP) on nursing students. Medical services are limited and essential for maintenance of human basic life. In order to improve the quality of human life, cost management competency that enable efficient allocation of medical resources are essential. This study adopts a randomized controlled pre/post repeated measure design. The sample comprised 39 nursing students in the web-group and 35 in the textbook-group. Experimental group and control group learned respectively with Web- CMCEP and textbook for 4 weeks. The research variables were measured at 4 times: pre, post, after 4 weeks of intervention, and after 8 weeks of intervention. Data were analyzed using χ2 -test, t-test, paired t-test, repeated measures ANOVA, Friedman test, and Wilcoxon signed rank test. Significant differences were found in cost management knowledge. The web-group showed higher cost management knowledge than the text-group. At different measuring points, the Web-CMCEP led to significant increases in the following: cost management knowledge, cost management attitude, cost management behavior, cost management self-efficacy, and entrepreneurship. Based on the findings, we suggested utilizing the Web-CMCEP as a prototype in developing education programs to improve nursing students’ cost management competency and to support nursing start-ups.

Cost Management in Micro and Small Companies in the Mining Sector

According to Sebrae, micro and small companies represented 27% of the GDP in 2011 and 98.5% of all private companies in 2015. Despite this importance, in most cases they do not have employees with extensive cost management knowledge and the management practices of large companies are also repeated in them. Therefore, the aim of this paper is to analyze the operability of cost management at the micro and small companies that act in the mining and processing of dimension stones sector, searching for emphases on the presence of isomorphism. One hundred and sixty-two (162) companies were investigated in order to operationalize this study. A structured questionnaire was used as a data collection procedure. Three different approaches were used in the statistical analysis of the collected data: descriptive statistics; the Mann-Whitney U test and Fisher’s exact test, and confirmatory and exploratory factor analysis. The results show the presence of mimetic isomorphism in the cost management practices of the companies researched. The research is limited to the sample, therefore, its findings can not be generalized. Based on this study, it was observed that future research should further develop the characterization of this economic phenomenon and study which resources would be required to improve management cost in micro and small companies in the analyzed segment. This is the first work that found the presence of mimetic isoformism among micro and small companies in the mining sector.

An Automated Framework for the Integration between EVM and Risk Management

Earned Value Management (EVM) and Project Risk Management are normally considered separately in Project Management. Referring PMBoK®, EVM is part of Project Time Management and Project Cost Management knowledge areas, while Project Risk Management is a different knowledge area with no apparent relation with the previous ones, although the fundamentals of EVM are fully influenced by risk management. This paper seeks to clarify the mechanisms of this relation, and in which points they meet or affect each other. The interconnection between the two methods was explored in this study and a framework of integration between them was proposed. The framework was implemented in Excel resulting in a set of tools that can be useful in monitoring and controlling a project.

Managing project investments irreversibility by accounting relations

Analytical techniques usually employed in making project selection decisions are of strictly financial origin and, traditionally, tend to consider projects as separate entities from undertaking organizations. This fact underestimates potential negative (and pervasive) outcomes considering that binding constraints affect the whole organization in further additional developments. This paper proposes a methodological algorithm to analyze, model and quantify irreversibility aspects to integrate and support traditional financial techniques. The goal is pursued by considering widespread well-known accounting indexes, and assuming reversibility rate as time needed to return to the “optimal original state” (as defined in accounting literature) prior project investment decisions. An illustrative case is proposed to explain how the methodology can be applied since the pre-feasibility step of the management of project framework. As calculations show, such a reversibility rate can be usefully implemented to improve effectiveness of planning processes within project cost management knowledge area.

Job Satisfaction, Cost Management Knowledge, Budgetary Participation, and Their Impact on Performance (P.15-29)

Job Satisfaction, Cost Management Knowledge, Budgetary Participation, and Their Impact on Performance (P.15-29)

Job Satisfaction, Cost Management Knowledge, Budgetary Participation, and Their Impact on Performance

This research aims to investigate the influence of the manager’s level of cost management knowledge and job satisfaction on the relationship between budget participation and managerial performance. This research uses theoretical framework of individual performance who claims that individual performance is affected by three dimensions of performance which interact each other, i.e. dimensions of opportunity (participatory budget), dimensions of capacity (cost management knowledge) and the dimensions of willingness (job satisfaction). Hypotheses were tested using multivariate regression models that included interaction of three variables (3-way interaction) between budgetary participation, cost management knowledge and job satisfaction to test their effects on managerial performance. Research shows that budget participation which is given to managers with higher cost management knowledge and higher job satisfaction, had no impact to their managerial performance. Managerial performance variation can be explained by two dimensions. Based on our tests, the findings is consistent that budget participation has positive effect to managerial performance. Further test shows that managerial performance will increase when budget participation combined with high level of cost management knowledge or when budget participation combined with high job satisfaction (2 way interaction). The research also found that the combination of cost management knowledge with high job satis-faction without the opportunity to participate in the budgeting process will actually degrade the managerial performance. DOI : https://doi.org/10.21632/irjbs.9.1.15-29 Keywords: Budget Participation, Cost Management Knowledge, Job Satisfaction, Managerial Performance

Job Satisfaction, Cost Management Knowledge, Budgetary Participation, and Their Impact on Performance

This research aims to investigate the influence of the managers level of cost management knowledge and job satisfaction on the relationship between budget participation and managerial performance. This research uses theoretical framework of individual performance who claims that individual performance is affected by three dimensions of performance which interact each other, i.e. dimensions of opportunity (participatory budget), dimensions of capacity (cost management knowledge) and the dimensions of willingness (job satisfaction). Hypotheses were tested using multivariate regression models that included interaction of three variables (3-way interaction) between budgetary participation, cost management knowledge and job satisfaction to test their effects on managerial performance. Research shows that budget participation which is given to managers with higher cost management knowledge and higher job satisfaction, had no impact to their managerial performance. Managerial performance variation can be explained by two dimensions. Based on our tests, the findings is consistent that budget participation has positive effect to managerial performance. Further test shows that managerial performance will increase when budget participation combined with high level of cost management knowledge or when budget participation combined with high job satisfaction (2 way interaction). The research also found that the combination of cost management knowledge with high job satis-faction without the opportunity to participate in the budgeting process will actually degrade the managerial performance.DOI :https://doi.org/10.21632/irjbs.9.1.15-29Keywords: Budget Participation, Cost Management Knowledge, Job Satisfaction, Managerial Performance

Relação do Conhecimento de Gestão de Custos e Participação Orçamentária com o Desempenho dos Gestores

Management control systems are applied tools thatmay be useful to align managers’ personal interestsconcerning organizational goals. In this context,corporate budgets are used as an organizationalcontrol tool and, historically, research reveals thattheir use, associated with other tools such as thosereferring to management and budgeting, maycontribute to managers’ individual performanceand, globally, to organizational performance itself.However, subjective and behavioral phenomenamay also affect the organizational environment;thus, it is appropriate to investigate the effectof control tools on the behavior of individuals.This paper is based on the work of Agbejule andSaarikoski (2006), and it aims to investigatethe relationship between cost managementknowledge and budgetary participation withthe performance of managers. The survey isdescriptive as to its goal and to procedures suchas surveys, and quantitative as to the approachtaken to approaching the problem. The sampleconsists of hierarchical middle-level managersworking in organizations located in SouthernBrazil. Survey data was analyzed with Regressionand Factor Analysis statistical methods, using 18.0version SPSS software. Results indicate that thereis an influence of cost management knowledgeand budgetary participation on managers’performance, but only for factors consideredcollective managerial performance.Keywords: Cost management knowledge.Managerial performance. Budgetary participation.

Small restaurant businesses and the importance of knowledge of cost management: an exploratory study

The ability of hospitality owners and managers, including those of small businesses, to manage the costs of their operations is critical to guaranteeing the business's long-term survival. Through semi-structured, in-depth interviews with small restaurant owners and managers, this study examines several areas related to knowledge of cost management from the perspective of this group of hospitality businesses. The findings illustrate that respondents' cost management knowledge is closely related to problem-solving strategies in addressing labour, food, rent, and other costs. Similarly, knowledge of managing these costs is suggested as vital for future owners and managers. Given the very competitive nature of the hospitality industry, coupled with the constant concern of balancing costs, revenues, and low margins, the findings have important implications for practitioners and academics; in addition, potential avenues for future investigation are suggested.

Cost Management in Translation

Translation management is a modern approach toward translation industry in order to improve performance, quality and to reduce the use of resources such as human resources, cost and time. In this study, the main goal is to identify the standard cost management procedures and to apply cost management knowledge to translation studies. The study is based on Project Management Institute (PMI) standards which consist of 9 different management knowledge areas such as time, cost, procurement, quality, human resources, integration, communication, and risk management. The findings are expected to shed some light on cost management and its related issues in translation studies. DOI: 10.5901/ajis.2013.v2n1p161

The effect of cost management knowledge on the relationship between budgetary participation and managerial performance

This study investigates the relationship between budget participation (BP), cost management knowledge and managerial performance. It draws on relevant previous research in the theory of work performance and accounting to formulate the research questions. Eighty-three managers from Finnish companies participated in the study. Data were collected from the managers using a mail questionnaire. The results indicate that managers’ cost management knowledge, and especially the balanced perspective of cost management knowledge, moderates the effect of BP on self-perception of managerial performance. It was specifically found that the effect of BP on perceived managerial performance becomes more positive when managers’ cost management knowledge increases. High perception of managerial performance is obtained when both the BP and managers’ cost management knowledge are high. Our results suggest that organizations should improve the cost management knowledge of managers who participate in the budgeting process.

Investigating the management of knowledge for competitive advantage

PurposeThe purpose of this paper is to develop and apply a framework that examines the effectiveness and efficiency of managing knowledge in organizations for competitive advantage.Design/methodology/approachReviews knowledge management and strategic cost management literatures to identify key elements that determine and facilitate the enhancement of competitive advantage. Develops a cost‐knowledge management (CKM) framework that integrates these elements and enables the analysis of how knowledge utilization in organizational activities can be made more effective and efficient.FindingsThe CKM framework is usefully applied to a sample of four Italian firms operating in the mechanical industry. Both the results of applying the CKM framework and the insights that are generated are discussed.Practical implicationsThe CKM framework allows organizations to analyze the activities performed in terms of cost structure and cost drivers, value created, and knowledge utilized, the latter in terms of knowledge specificity and type. The framework can also be used to highlight specific areas of effectiveness improvements in terms of identifying which activities should be leveraged and how knowledge can be better mobilized. In addition, the framework enables an assessment of the non value added but required and waste elements of organizational activities and the specific drivers of costs in these activities, thereby enabling an identification of efficiency improvement opportunities.Originality/valueThis paper integrates strategic cost management and knowledge management perspectives to examine how organizations can usefully analyze and improve the effectiveness and efficiency of managing knowledge for competitive advantage. Thus far, this integration has not occurred in either literatures.