7 Project Cost Management Flashcards
Project Cost Management includes…
All the processes involved in planing estimating budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.
List processes in Project Cost Management
(4)
- 1 Plan Cost Management (Planning)
- 2 Estimate Costs (Planning)
- 3 Determine Budget (Planning)
- 4 Control Costs (Monitoring and Controlling)
List Inputs, Tool & Techniques, and Outputs for:
7.1 Plan Cost Management
Inputs PM Plan Project Charter Enterprise Environmental Factors Organizational Process assets
Tools
Expert Judgement
Analytic techniques
Meetings
Outputs
Cost Management Plan
List Inputs, Tool & Techniques, and Outputs for:
7.2 Estimate Costs
Inputs Cost Management Plan Human Resource Management Plan Scope Baseline Project Schedule Risk register EEF's OPA's
Tools and Techniques Expert Judgement Analagous Estimating Parametric Estimating Bottom-up Estimating Three point estimating Reserve Analysis Cost of Quality Project Management Software Vendor Bid Analysis Group Decision Making Techniques
Outputs:
Activity cost estimates
Basis of Estimates
Project documents updates
List Inputs, Tool & Techniques, and Outputs for:
7.2 Determine Budget
Inputs Cost Management Plan Scope Baseline Activity Cost Estimates Basis of estimates Project Schedule Resource Calendars Risk Register Agreements OPA's
Tools and Techniques Cost Aggregation Reserve Analysis Expert Judgement Historical Relationships Funding limit reconciliation
Outputs
Cost baseline
Project Funding requirements
Project Documents updates
List Inputs, Tool & Techniques, and Outputs for:
7.4 Control Costs
Inputs Project Management Plan Project Funding requirements Work Performance Data OPA's
Tools and Techniques Earned Value Management Forecasting To-complete performance index (TCPI) Performance Reviews Project Management software Reserve Analysis
Outputs Work Performance Information Cost forecasts Change Requests Project Management Plan updates OPA Updates
Three Point Estimating formulas
Triangular - cE=(cO+cM+cP)/3
Beta - cE=(cO+4(cM)+cP)/6
Earned Value Management
Methodology that combines scope, schedule, and resource measurements to ass project performance and progress. EVM develops and monitors three key dimensions for each work package and control account: Planned Value, Earned Value, and Actual costs.
Planned value
PV is the authorized budget assigned to scheduled work.. Does not include management reserve. The total of the PV is sometimes referred to as performance measurement baseline (PMB). The total planned value for the project is also known as budget at completion (BAC).
Earned Value
EV is a measure of work performed expressed in terms of the budget authorized for that work. It is the budget for the work that has been completed. EV measured cannot be greater than the authorized PV for a component.
Actual Cost
AC is the realized cost incurred for the work performed on an activity during a specific time period.
