Cost Management Flashcards
Estimation: What needs to be estimated?
- Scope
- Effort
- Duration
- Schedule with risks
- Resources
- labor and non-labor costs
Types of estimations
- ROM: +/- 50%
- Budget: -5% to +25%
- Definitive: -5% to +10%
General estimation methods
- Expert judgement
- Analogous estimating
- Parametric estimate
Three-point-estimating
(optimistic+most likely+pessimistic)/3
Three-Point-Estimating beta distribution
(Optimistic+4Most Likely+Pessimistic)/6
Planning Poker estimating
Agile method
card deck with Fibbonacci numbers.
Estimating using nominal group technique
Group of experts and team members
Delphi technique estimating
Anonymous submittal of optimistic, most likely, pessimistic estimates.
Reserve analysis estimation
Incorporation of additional time as a recognition of uncertainty and risk.
Project Cost Management Overview
- Plan
- Estimate
- Determine budget
- Control costs
Project budget components
- Project budget
- Management reserve
- Cost baseline
- Contingency reserve
- Work packages
- control account
- Work packages
- Activity
- Work packages
- control account
Earned Value
- Planned value (bcws)
- Earned Value (bcwp)
- Actual cost (acwp)
- BAC
- ETC
- EAC
- VAC
- SV and CV
- SPI and CPI
What is value based management
ROI
OVC
Return on Sales - Return on investment
Project calculation for PEP project
NPV =Et0+(I-E)tnX1.09^-n where n=year
- R&D
- EWAK+MAE
- PPC+volume produced
- unit price * volume sold
Picture graph in training manual
