Total Cost Management Framework (TCM) by AACE and the Project Management Body of Knowledge (PMBOK) by PMI, a comparison #1

Past one month I was busy researching the Total Cost Management (TCM) framework by AACE. What differentiates TCM from PMBOK are the depth of the recommended practices (RPs) of TCM. These are the real project management practitioner’s voice.  The recommended practices addresses the real life project management challenges from a practitioner’s perspective, helping them to improve further.

Right now I am conducting a project management training based on the project management body of knowledge (PMBOK) by PMI, USA for a very large product based multi national company. My research effort in TCM framework helps me to explain the PMBOK in much more detail.

For example, PMBOK just touches upon the concept of Code of Accounts (COA), where as TCM framework emphasize the importance of well defined COA for effective cost control. The linkages between CoA, Project MAnagement Information System (PMIS) and the Earned value management system (EVMS).  Another example is the hammock. PMBOK just explains it as summary activities. TCM framework addresses it as LoE (level of effort) activities which does not deliver any tangible output (project management, testing, tracking, documentation etc) and goes on to explain how to handle LoE activities on the critical path. These are very valuable insights provided by TCM framework.

To be continued.

Courtesy :  Wrench Solutions 

 

Published by Abrachan Pudussery

Founder member of the Project Management Research Institute, a not for profit organization involved in collaborative research, development and deployment of customer centric project management solutions.

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