7 - Project Cost Management Flashcards
What are the Project Cost Management processes?
- 1 Plan Cost Management—The process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled.
- 2 Estimate Costs—The process of developing an approximation of the monetary resources needed to complete project work.
- 3 Determine Budget—The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
- 4 Control Costs—The process of monitoring the status of the project to update the project costs and manage changes to the cost baseline.
What is the Project Cost Management process group?
Project Cost Management 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. The Project Cost Management processes are:
What are the tailoring considerations for Project Cost Management processes?
- Knowledge management.
Does the organization have a formal knowledge management and financial database repository that a project manager is required to use and that is readily accessible? - Estimating and budgeting.
Does the organization have existing formal or informal cost estimating and budgeting-related policies, procedures, and guidelines? - Earned value management.
Does the organization use earned value management in managing projects? u u use of agile approach. Does the organization use agile methodologies in managing projects? How does this impact cost estimating? - Governance.
Does the organization have formal or informal audit and governance policies, procedures, and guidelines?
What are the trends and emerging practices in the Project Cost Management process group?
- Earned Value Management (EVM)
EVM = Earned Value - Planned Value - Earned Schedule (ES)
ES - AT (Earned Schedule - Actual Time)
7.1
what is the Plan Cost Management process?
Plan Cost Management is the process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled.
The goal is to create a cost management plan (which is this process’ output!)
7.1
What is the key benefit to the Plan Cost Management process?
The key benefit of this process is that it provides guidance and direction on how the project costs will be managed throughout the project.
7.1
Plan Cost Management: Inputs
.1 Project charter
.2 Project management plan
• Schedule management plan
• Risk management plan
.3 Enterprise environmental factors (EEFs)
.4 Organizational process assets (OPAs)7.1
Plan Cost Management: Tools & Techniques
.1 Expert judgment
.2 Data analysis
• Alternative analysis
.3 Meetings
7.1
Plan Cost Management: Outputs
.1 Cost management plan
The cost management plan is a component of the project management plan and describes how the project costs will be planned, structured, and controlled. The cost management processes and their associated tools and techniques are documented in the cost management plan.
7.2
what is the Estimate Costs process?
Estimate Costs is the process of developing an approximation of the cost of resources needed to complete project work.
7.2
what is the key benefit of the Estimate Costs process?
The key benefit of this process is that it determines the monetary resources required for the project.
7.2
Estimate Costs: Inputs
.1 Project management plan
• Cost management plan
• Quality management plan
• Scope baseline
.2 Project documents
• Lessons learned register
• Project schedule
• Resource requirements
• Risk register
.3 Enterprise environmental factors (EEFs)
.4 Organizational process assets (OPAs)7.2
Estimate Costs: Tools & Techniques
.1 Expert judgment
.2 Analogous estimating
.3 Parametric estimating
.4 Bottom-up estimating
.5 Three-point estimating
.6 Data analysis
• Alternatives analysis
• Reserve analysis
• Cost of quality
.7 Project management information system
.8 Decision making
• Voting7.2
Estimate Costs: Outputs
1 Cost estimates
.2 Basis of estimates
.3 Project documents updates
• Assumption log
• Lessons learned register
• Risk registerConcept: Cost Estimate
A cost estimate is a quantitative assessment of the likely costs for resources required to complete the activity.
