7.2 Estimate Costs (Cost MGMT) Flashcards
what is 7.2 estimate costs?
developing an approximation of the cost of resources needed to complete project work
what is a key benefit of 7.2 estimate costs?
determines the monetary resources required for the project
when is 7.2 estimate costs performed during a project?
periodically
7.2 estimate costs - inputs
- project management plan (3)
- project documents (4)
- EEF
- OPAs
what project management plan inputs are relevant for 7.2 estimate costs?
a. cost management plan
b. quality management plan
c. scope baseline
what project document inputs are relevant for 7.2 estimate costs?
a. lessons learned register
b. project schedule
c. resources requirements
d. risk register
what is a cost estimate?
a quantitative assessment of the likely costs for resources required to complete the activity
7.2 estimate costs - tools and techniques
- expert judgment
- analogous estimating
- parametric estimating
- bottom up estimating
- three point estimating
- data analysis (3)
- PMIS
- decision making (1)
what is analogous estimating?
uses values or attributes of a previous project that are similar to the current project
what is parametric estimating?
uses a statistical relationship between relevant historical data and other variables to calculate a cost estimate for project work
what is bottom up estimating?
the cost of individual work packages or activities is estimated to the greatest level of specified detail - cost is then summarized and rolled up
what is three point estimating?
uses three estimates to define an approximate range for an activity cost - cE (expected cost)
most likely = cM
optimistic = cO
pessemistic = cP
triangular distribution: cE = (cO + cM + cP)/3
beta distribution: cE = (cO + 4cM + cP)/6
what data analysis tools and techniques are relevant for 7.2 estimate costs?
a. alternative analysis
b. reserve analysis
c. cost of quality
what decision making tools and techniques are relevant for 7.2 estimate costs?
a. voting
7.2 estimate costs - outputs
- cost estimates
- basis of estimates
- project document updates (3)