Chapter 6

Question 1

Cost Estimating

Answer 1

• process of estimating what you will spend on all your project resources.

Question 2

Analagous Estimating

Answer 2

• uses historical data from past projects
• uses expert judgement
• AKA: Top-Down estimating
• AKA: order - of - magnitude estimate
• good to use in early stage of project

Question 3

Parametric Estimating

Answer 3

Uses a mathematical model to compute costs

Question 4

Bottom-up Estimating

Answer 4

• Assigns a cost estimate to each work package on the project.
• sum of all the work package estimates provides the estimate of the total project cost
• most precise technique, most accurate & most time consuming

Question 5

Cost Budgeting

Answer 5

• Process of aggregating all the cost estimates & establishing a cost baseline for the project.

Question 6

Cost Baseline

Answer 6

• the total expected cost for the project

- once approved, used throughout project

Question 7

Creating the Project Budget

Answer 7

• usually broken down by specific cost categories

ex. salary, hardware, software, travel, training, & materials.

Question 8

Management Reserve

Answer 8

• Amount set aside by upper management to cover future situations that can’t be predicted.
• usually based on % of total project cost

Question 9

Quality Planning

Answer 9

• Process of identifying quality standards that are applicable to your project & determining how your project will meet these standards.

Question 10

Benchmarking

Answer 10

• a technique that uses similar activities as a means of comparison

Question 11

Flowcharting

Answer 11

• Uses diagrams that depict the relationship of various elements in the project.

Question 12

Cost of Quality

Answer 12

• Total cost of all the work required to assure the project meets the quality standards.

Question 13

Appraisal costs (cost of quality)

Answer 13

• Include the activities performed to examine the product or process & make certain the qualify requirements are being met.

Question 14

Failure Costs (cost of quality)

Answer 14

• cost of activities needed if the product fails.
• Internal: customer satisfaction is not met
• External: reaches customer but customers don’t think it meets requirements
• AKA: cost of poor quality

Question 15

Quality Management Plan

Answer 15

• Describes how the project team will carry out the quality policy.

Question 16

Quality Checklists

Answer 16

• A quality checklist is a tool that lists a series of steps that must be taken to complete an activity or process.

Question 17

Exit Criteria

Answer 17

• May include exit criteria that must be met upon completion of project.

Question 18

Risk Identification

Answer 18

• The process of determining & documenting the potential risks that could occur on your project.

Question 19

Risk Probability

Answer 19

• Likelihood that a risk event will occur.

Question 20

Risk Impack

Answer 20

• Amount of damage (or opportunity) the risk poses to the project if it occurs.

Question 21

Contingency Planning

Answer 21

• Planning alternatives to deal with risk should they occur.