7.4 Control Costs (Cost MGMT) Flashcards
what is 7.4 control costs?
monitoring the status of the project to update the project costs and managing changes to the cost baseline
what is the key benefit of 7.4 control costs?
the cost baseline is maintained throughout the project
when is 7.4 control costs performed during a project?
throughout
7.4 control costs - inputs
- project management plan (3)
- project documents (1)
- project funding requirements
- work performance data
- OPA’s
what project management plan inputs are relevant to 7.4 control costs?
a. cost management plan
b. cost baseline
c. performance measurement baseline
what project document inputs are relevant to 7.4 control costs?
a. lessons learned register
7.4 control costs - tools and techniques
- expert judgement
- data analysis (4)
- to complete performance index
- PMIS
what data analysis tools and techniques are relevant to 7.4 control costs?
a. earned value analysis (3)
b. variance analysis (2)
c. trend analysis
d. reserve analysis
what are project costs controls?
- influencing factors to create changes to cost baseline
- timely manner for change requests
- managing actual changes when they occur
- ensuring cost expenditures don’t exceed authorized funding by period, WBS component, activity or in total
- monitoring cost performance to isolate and understand variances
- monitoring work performance against funds expended
- preventing unapproved changes from being reported costs or resource usage
- informing stakeholders of approved changes and associated costs
- bringing in costs overruns
what work performance data is relevant for 7.4 control costs?
which costs have been authorized, incurred, invoiced and paid
what is earned value analysis (EVA)?
- analysis that compares the performance measurement baseline to the actual schedule and cost performance
- three key dimensions are developed and monitored
1. planned value (PV)
2. earned value (EV)
3. actual cost (AC)
what is planned value (PV)
- earned value analysis dimension
- authorized budget assigned to scheduled work
- doesn’t include management reserves
- total value of the PV sometimes referred to as the performance measurement baseline (PMB)
- total planned value for project = budget at completion (BAC)
what is earned value (EV)?
- earned value analysis dimension
- the budget associated with the completed authorized work
- should be related to the performance measurement baseline (PMB)
- cannot be greater than the authorized planned value (PV) budget for a component
- often used to calculate percent complete of a project
what is actual cost (AC)?
- earned value analysis dimension
- total cost incurred in accomplishing the work that the earned value (EV) measured
- no upper limit, whatever is spent to achieve the earned value (EV) is measured
what is variance analysis?
variance at completion (VAC) = budget at completion (BAC) - estimate at completion (EAC)
the explanation (cause, impact and corrective actions) for costs and variance at completion variances