7 Flashcards
It includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.
Project Cost Management
The process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled.
Plan Cost Management
The process of developing an approximation of the monetary resources needed to complete project work.
Estimate Costs
The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
Determine Budget
The process of monitoring the status of the project to update the project costs and manage changes to the cost baseline.
Control Costs
The key benefit of this process is that it provides guidance and direction on how the project costs will be managed throughout the project
Plan Cost Management
It is a component of the project management plan and describes how the project costs will
be planned, structured, and controlled.
Cost Management Plan
The key benefit of this process is that it determines the monetary resources required for the project.
Estimate Costs
cE = (cO + cM + cP) / 3
Three-Point Estimate (Triangular distribution)
cE = (cO + 4cM + cP) / 6
Three-Point Estimate (Beta/PERT distribution)
Include quantitative assessments of the probable costs required to complete project work, as well as contingency amounts to account for identified risks, and management reserve to cover unplanned work
Cost Estimates
The amount and type of additional details supporting the cost estimate
Basis of Estimates
Cost estimates are aggregated by work packages in accordance with the WBS
Cost Aggregation
The work package cost estimates, along with any contingency reserves estimated for the work packages, are aggregated into:
control accounts
The summation of the control accounts make up the:
cost baseline
Management reserves are added to the cost baseline to produce the:
project budget
The key benefit of this process is that the cost baseline is maintained throughout the project. This process is performed throughout the project.
Control Costs
It compares the performance measurement baseline to the actual schedule and cost performance. It integrates the scope baseline with the cost baseline and schedule baseline to form the performance measurement baseline
Earned value analysis
The value of the work planned to be completed to a point in time, usually the data date, or project completion.
Planned value
The planned value of all the work completed (earned) to a point in time, usually the data date, without reference to actual costs.
Earned value
Cost of all the work completed to a point in time, usually the data date.
Actual cost
The difference between the work completed to a point in time, usually the data date, and the work planned to be completed to the same point in time.
Schedule variance
The difference between the value of work completed to a point in time, usually the data date, and the actual costs to the same point in time.
Cost variance
The estimated difference in cost at the completion of the project.
Variance at Completion
1.0 means that the project is exactly on schedule, that the work actually done so far is exactly the same as the work planned to be done so far. Other values show the percentage of how much costs are over or under the budgeted amount for work planned.
Schedule performance index SPI
1.0 means the project is exactly on budget, that the work actually done so far is exactly the same as the cost so far. Other values show the percentage of how much costs are over or under the budgeted amount for work accomplished.
Cost performance index CPI
The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete.
Estimate At Completion EAC
Assuming work is proceeding on plan, the cost of completing the remaining authorized work
Estimate to Complete
A measure of the cost performance that must be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the budget available.
To Complete Performance Index TCPI
EV – PV
Schedule variance
EV – AC
Cost variance
BAC – EAC
Variance at Completion
EV/AC
Cost performance index CPI
EV/PV
Schedule performance index SPI
AC + (BAC – EV)
EAC forecast for ETC work performed at the budgeted rate
BAC / CPI
EAC forecast for ETC work performed at the present CPI
AC + [(BAC – EV) / (CPI × SPI)].
EAC forecast for ETC work considering both SPI and CPI factors
(BAC – EV)/(BAC – AC)
To-Complete Performance Index: The efficiency that must be maintained in order to complete on plan.
(BAC – EV)/(EAC – AC)
TCPI The efficiency that must be maintained in order to complete the current EAC.
Schedule variance
EV – PV
Cost variance
EV – AC
Variance at Completion
BAC – EAC
Schedule performance index SPI
EV/PV
Cost performance index CPI
EV/AC
EAC forecast for ETC work performed at the budgeted rate
If future work will be accomplished at the planned rate
AC + (BAC – EV)
EAC forecast for ETC work performed at the present CPI
If the CPI is expected to be the same for the remainder of the project
BAC / CPI
EAC forecast for ETC work considering both SPI and CPI factors
If both the CPI and SPI influence the remaining work
AC + (BAC – EV) / (CPI × SPI)].
To-Complete Performance Index
The efficiency that must be maintained in order to complete on plan.
TCPI = (BAC – EV)/(BAC – AC)
To-Complete Performance Index
The efficiency that must be maintained in order to complete the current EAC.
TCPI = (BAC – EV)/(EAC – AC)