Sunday 2 January 2022

How much does it cost to manage the project? Cost-effective Management

One of the essential aspects of project management in a business is cost management. managing project costs appropriately can help you succeed your project and maximize your company's profits. therefore, in this article, i will explain in detail the market price of project management expenses and the points for reducing costs.

There are several ways to manage a project.

Project management includes using office products such as Excel installed on your PC, online management tools, and a dedicated system for your company. There may be requests for each such thing as "I want to manage projects easily, but I don't want to spend much money", "I want to introduce a specialized system regardless of budget because I want to focus on security".

Let's take a closer look at the characteristics and disadvantages of excel-based project management, online project management tools, and project management systems.

  • All-in-one information management tool for companies Huddler
  • Centrally manage
  • all information such as meeting minutes, tasks, team
  • Project management in Excel
  • Many companies use Excel to create Gantt charts and manage their work processes and schedules.

However, if you want to use it with multiple people, you must modify the data as soon as there is a change or addition to the schedule or content and deliver it to the project team. Also, since you can't share data without Excel installed, you have to prepare a PC environment as needed, and you need some Excel to create the data.



The PC environment is in place, and if you have a certain amount of Excel knowledge, you can manage projects without spending the most money. You can also create Gantt charts and manage schedules, so you can take advantage of the minimum functions you need.



Excel data can be shared, but it cannot be linked with other apps, so real-time communication such as chat requires work while launching another app. it is necessary to distribute to the project team each time the data is updated, so it is necessary to decide in advance the unification of e-mail software.

Project management with management tools

  • Project management tools are tools that allow you to manage your data online. In other words, as long as you have an Internet environment, you can check the schedule and work process at any time on your PC, tablet or smartphone.
  • It's updated in real time, so you can always keep up-to-date with updates and communication with chats and comments. Since information can be shared quickly, it is possible to flexibly respond to urgent work.



Create, edit, and manage Gantt charts that can be created and managed in Excel. In addition, budget, personnel, schedule management of each staff, etc. can be viewed and confirmed in the list.
In addition, since information can be shared in real time using the chat function, it can be used at any time even if you are away from the office, such as on a business trip or telework.



because you use the internet, there is a security concern. server management is all done by the service provider, so it's important to choose a more secure service.

project management system
a dedicated project management system allows you to track schedules and see project progress using a variety of methods, as well as general gantt charts.



since everything from system maintenance to server management is done in-house, it can be said that there is a big advantage in that security concerns are minimized. you're flexible enough to adapt to sudden changes to your project, and you can see a list of who's doing what and when.



developing a dedicated system requires a fairly large budget. you need to estimate your long-term budget, as well as regular maintenance, as well as during deployment.


since it can be used as a company's own system, you can incorporate the functions you want to use. it is ideal for large projects and large schedule management, and it is possible to perform all server system management in-house.

  • All-in-one information management tool for companies Huddler
  • Centrally manage
  • all information such as meeting minutes, tasks, team knowledge, etc. For free →

cost quotes for project management tools
project management is typically online website tools or project management apps. there are many companies that provide project management tool services, and in most cases the initial cost can start at 0 yen, and there are also management tools that have a trial period.

the main fee structure is a monthly fee system, but there are two types of this, and you can choose which one to use depending on the size of the company and the features you want to use.


pay-as-you-go rates vary depending on the number of people using, or "number of accounts". 1 account is calculated at about 500to1,500 yen and is calculated as "monthly fee = account unit price × number of people". basic functions such as gantt charting, commenting function, and schedule management function are available.


because it can be used according to the number of people, it is recommended when you want to use it with a small number of people such as private management or small and medium-sized enterprises.

  1. fixed monthly
  2. fixed monthly is a type of project management tool service that you can use while paying a fixed amount of money every month.

you will be applying for the desired plan according to the plan provided on each site, so it is a good idea to decide what kind of functions you need. in most cases, the number of accounts available, file capacity, project man-hours, etc. are limited, so let's check the contents thoroughly in advance before applying.

project management costs and their market prices
in the first place, project management costs are said to be expenses incurred by the leader who manages the project for overall progress management and management related to quality control. this includes costs such as labor and material costs, and the concept of cost management, which will be discussed later, is very important.


project management costs are estimated to start at least 100,000 yen depending on the content of the project, the production product, the production company, and the scale of the project, and about 10 to 15% of the total production cost is estimated.

"cost management" required to proceed with the project

this concept of cost management is essential for in-depth explanations of project management costs. cost control refers to managing a project to be completed within the proposed budget and within the scheduled period. the following types of work are specifically included.


  • estimate costs for the entire project
  • budgeting
  • budget adjustments


cost management is an important factor that directly relates to the benefits that a project brings to the company, so if it does better, it can be said that the project will be successful, and conversely, if the project management cost increases more than planned, it will result in over budget.

4 things you need to keep your project management costs down
so, what kind of things do you need to understand and understand in order to proceed with cost management well without spending more project management expenses than necessary? here are four points in detail:

(1) develop a clear "cost management plan" in advance

in order to properly manage costs in order to proceed with a project, it is necessary to have a "cost management plan" in place and establish policies and processes in advance, just as you plan the progress of the entire project. as an element that needs to be determined at this time, it is necessary to determine at which process and when physical resources such as personnel, equipment, and materials are required.


information about past projects is important in these situations. it is very useful in making a plan without omission by referring to not only past information held by each employee but also information accumulated throughout the organization.

(2) to know what is necessary, estimate by "cost estimate"

once you have a set of cost policies and processes for your project, estimate costs before you start budgeting. by creating an estimate, you can know the difference from the expected cost, and if you need to review the plan, you can grasp it at an early time. balance costs with the results you achieve to advance your cost management plan.

(2) understand the entire project

in order to properly manage costs in conjunction with the progress of the project, it is important for the leader to grasp the overall picture of the project and estimate the cost. understanding the whole picture is also about collecting information related to the progress of the project. of course, if the information is not enough to grasp the whole picture, it is unfounded to formulate a budget, resulting in a sweet estimate of the outlook, and costs other than the budget combined as the progress progresses.


as a result, the budget may be over budgeted, or in the worst case, the project may fail or derail. in order to prevent such results, it is necessary to devise ways such as seeking opinions not only from the inside but also from outside.

(3) always keep track of the progress of the project

the most important thing in managing costs without failure is to always grasp the progress of the entire project. in fact, if there is a delay in the progress schedule due to some trouble in the project progress, it is necessary to add additional personnel in order to earn man-hours to catch up.


in such a case, extra costs outside the budget will occur, but if you properly grasp the latest progress, you can move and respond quickly to sudden changes and troubles. the sooner such a response is, the more you can proceed according to the original cost management plan, which will lead to lower expenses.


in project management management, by properly managing project management expenses based on the points described above, it is possible to bring more benefits to companies. and it is essential for the project leader to create, estimate, and budget appropriately.


stay on top of how the entire project is moving and which tasks your members are currently on, leading to more accurate cost control. in order not to waste money on project management expenses, i would be very happy if you could refer to the project progress that i participate in every day.

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