Cost Mgmt Flashcards
1
Q
Earned Value
A
How much work has been completed as of today
2
Q
Budget at Completion
A
What is the total budget for the project
3
Q
Variance at Completion
A
How much do we expect to vary from the BAC (VAC=BAC-EAC)
4
Q
Estimate to Complete
A
How much more (or less) do we need to spend over what we already have
5
Q
Actual Cost
A
How much have we spent for the work completed
6
Q
How much work was scheduled to be completed as of today
A
What is Planned Value
7
Q
What is cost variance
A
The difference between the value of the work completed (EV) and the Actual Cost
8
Q
Planned Value
A
How much work was scheduled to be completed today
9
Q
“the difference between the the work completed and the work planned”
A
What is schedule variance
SV=EV - PV
10
Q
The difference between the work completed and the the actual costs
A
What is cost variance
CV=EV - AC
11
Q
Ratio of Earned Value to Actual Costs
Cost Efficiency
A
What is Cost Performance Index
CPI=EV/AC
12
Q
What is Schedule Performance Index
A
Schedule efficiency
Ratio of value of the work completed to the The work scheduled to have been completed
SV=EV/PV
13
Q
Budget Planned - Estimated Cost to complete
A
What is Variance at completion
VAC = BAC - EAC
14
Q
Estimate at Completion
A
Expected Cost if Staying the Course: EAC = BAC/CPI If righting the Ship: AC - (BAC - EV) If dependent on CPI and SPI: EAC = (BAC-EV)/SPI*CPI
15
Q
Estimate to Complete
A
The expected cost to finish the remaining work
ETC = EAC - AC
16
Q
The ratio of the cost to finish the work, to the remaining budget where remaining budget can be the planned cost (BAC) or the Estimated Cost to complete the project (EAC)
A
What is TCPI
17
Q
a measure of the cost performance that must be achieved with remaining resources
A
What is TCPI
18
Q
a measure of the efficiency that must be maintained in order to complete the project
A
What is TCPI
19
Q
What does a CPI < 1.0 tell us
A
Project over cost
20
Q
What does a SPI < 1.0 tell us
A
Project behind schedule
21
Q
What does a negative value of CV tell us
A
Project over cost
22
Q
What does a positive value of SV tell us
A
Project ahead of schedule
23
Q
What does a TCPI less than 1 tell us
A
Project EASIER to complete
Note difference integer value
24
Q
Units of Measure
A
Agreed to units defined for each resource
25
The degree to which cost estimates will be rounded
What is level of precision
26
The acceptable range (e.g. +/- 10) used in determining realistic cost estimates
What is Level of Accuracy
27
A quantitative assessment of the likely costs for resources
What is a cost estimate
28
Beta distribution
(Optimistic + 4*Most Likely + Pessimistic)/6
29
The amount within the cost baseline allocated for known-unknown risks
What is Contingency reserve
30
Amount of budget held outside the cost baseline for mgmt control purposes
What is Mgmt Reserve
31
All cost incurred over the life of the product by investing in prophylactic investments to ensure project is in conformance to requirements
What is Cost of Quality
32
Basis of Estimates
How do you determine cost estimates--e.g. documentation of known constraints, assumptions made, confidence in final estimate, etc.
33
Why is the business case a key input to "Determine Budget"
It identifies the critical success factors for the project, including financial success factors
34
Why is the benefits mgmt plan a key document in "Determine Budgets"
It includes the target benefits such as present value calculations
35
The approved version of the time-phased budget, excluding mgmt reserve
What is the cost baseline
36
The summation of control accounts
What is the cost baseline
37
When is Mgmt reserve added in to the budget
In calculating the total funds req'd
38
It contains the data on project status such as which costs have been authorized, incurred, invoiced and paid
What is work performance data
39
Compares the performance measurement baseline to the actual schedule and cost
What is Earned Value analysis
40
How does EVM determine the performance measure baseline
Integrates the scope baseline, cost baseline, and schedule baseline
41
Performance measurement baseline
Integrated scope, schedule, and cost baselines used for comparison to manage, measure and control project execution
42
The total of the planned value
Performance measurement baseline
43
The authorized budget assigned to the SCHEDULED work
What is planned value
44
a measure of work performed expressed in terms of the budget authorized for that work
What is Earned Value
45
The total cost incurred in accomplishing the work that EV measured
What is Actual Cost
46
What term is particularly critical because it indicates the relationship of physical performance to costs spent
Cost Variance
47
Considered the most critical EV metric
What is Cost Performance index
48
Calculating the EAC that may differ from the BAC based on project performance
What is Forecasting
49
What does the PMIS measure
Monitor the 3 EVM dimensions
50
Contingency Reserves
Known-unknowns
Part of the project baseline
51
Mgmt Reserve
Unknown-unknowns
Not in cost baseline but are part of overall project budget
52
The value of the control accounts = contingency reserve plus...
work package cost estimates
53
Risk register
responses to opportunities and threats may have a cost to the project
54
Determine budget may aggregate individual activities or
work packages
55
Why is work performance data an an input to control costs
Data (actuals) on what is occurring related to the costs
56
When is the cost baseline created
"Determine budget"
57
When is the cost baseline updated?
"Control Costs"
58
Schedule forecasts are based on 1) planned performance or 2) actual performance
2) Actual performance
59
Tools and Techniques of Control Costs
EVM
Forecasting (EAC and ETC)
TCPI
60
Shows a comparison of actual data with the cost baseline
What is Work Performance Information
61
What is an expected output of "Control Costs"
Change Requests
62
What does a negative cost variance indicate
Over budget
63
What does a positive schedule variance indicate
Ahead of schedule
64
What does a integer value for cost performance index > 1 indicate?
Under budget
65
What does a integer value for schedule performance index < 1 indicate?
Behind Schedule
66
Specific percentage of the PV is assigned to the start of a work package/activity and the remaining at junctures
What is Fixed Formula
67
Activity get 0% when it starts and 100% when it completes
What is the 0/100 rule
68
Breaks execution into milestones and a percentage of PV is paid at the milestone per the agree to %
What is a weighted milestone
69
At the end of each time period, the % complete of the work package is multiplied by the BAC
What is "Percent Complete"
70
Relates to the amount of work actually completed
What is "Physical measurement"
71
If the question provides you QUANTITATIVE information, focus on that
If given a scenario, e,g, CPI = .98 and 8 weeks behind schedule, focus on the .98. (You don't know what the schedule delta is compared to the actual length of the schedule)
72
What does a TCPI < 1.0 indicate
EASIER to complete (smaller # is GOOD here), opposite CPI and SPI
73
The cost baseline is an input to which process
Control Costs
74
EVA is a Tool and technique of what process
Control Costs
75
Project funding rqmts are an
Input to Control Costs
76
Project Funding Rqmts are an
Output of determine budget
77
Read the question!
Are they asking for a variance or an index
78
cost/schedule indices
< 1.0: behind/over (BAD!)
79
TCPI index
< 1.0 easier to complete (GOOD!)
80
If a CPI is 1.2; what does this mean
It is costing $1.20 to complete $1.00 worth of work.
81
0/100
The Rule associated with equipment deliveries
82
Cost of a subcontractor working on the project
A direct cost (??)
83
Defining how the project costs will be estimated, budgeted, managed, monitored and controlled
What is "Plan Cost Mgmt"
84
Developing an approximation of the monetary resources needed to complete the project work
What is "Estimate Costs"
85
Monitoring the status of the project to update the project costs and manage changes to the cost baseline
What is "Control Costs"
86
Aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline
What is "Determine Budget"
87
How Many sub-processes are in "Project Cost Management"
4
Plan Cost Mgmt
Estimate Costs
Determine Budget
Control Costs
88
The WBS component used for the project cost accounting
What is the control account
89
Why is the charter an input to "Plan Cost Mgmt"?
Provides the pre-approved financial resources
90
What is the key output of "Plan Cost Mgmt"
Cost Mgmt Plan
91
What are the key outputs of "Estimate Costs"
Cost Estimates
| Basis of estimates
92
What are the key inputs to "Estimate Costs"
Cost Mgmt Plan
| Scope Baseline
93
Why is the scope baseline an input to "Estimate Costs"
Scope Statement has info on funding constraints
WBS provides relationships among deliverables
WBS Dictionary identifies the work in each deliverable
94
What are some of the Tools and Techniques of "Estimate Costs"
```
Analogous estimating
parametric estimating
bottom-up estimating
reserve analysis
Cost of Quality
PMIS
```
95
What are the key inputs of "Determine Budget"
* Cost Mgmt Plan
* Resource Mgmt Plan
* Business Documents
* Business Case
* Benefits Mgmt Plan
* Scope Baseline
* Basis of Estimates
96
Why is the "Business Case" an input to "Determine Budget"
Identifies the financial success factors
97
Why is the "Benefits Mgmt Plan" and input to "Determine Budget"
It includes target benefits, such as net present value calculations
98
Cost estimates are WHAT? by work packages in accordance with WBS.
Aggregated
99
A variance between the funding limits and planned expenditures which may necessitate rescheduling work
What is "Funding Limit Reconciliation"
100
Key outputs of "Determine Budget"
Cost Baseline
101
Key input to "Control Costs"
Work Performance Data
| e.g. which costs have been authorized, incurred, invoiced, and paid.
102
Key Tools and Techniques for "Control Budget"
Earned Value Analysis
Variance Analysis (SV, CV, SPI, CPI)
Trend Analysis
Forecasting (EAC, ETC, etc.)
103
Compares the performance measurements baseline to the actual schedule and cost performance
What is Earned Value Analysis
104
What comprises the Performance Measurement Baseline
Integration of the scope, cost, and schedule baselines through EVM
105
What are the three components EVM monitors at the work package and control account level
EV, PV, AC
106
What is a key output of "Control Costs"
Work Performance Information (e.g. how project costs are performing in relation to cost baseline"
107
What does an SPI of 1.3 mean
The project is progressing at 130% of the rate expected.
108
What does An SPI of 0.82 mean
the project is progressing at 82% of the rate expected
109
What does a value < 1 mean for CPI and SPI
Project is under performing
| Go back to equations!
110
What does a value < 0 mean for SV and CV
Project is under performing
| Go back to equations!
111
What does a CPI and SPI > 1 mean
Project is over performing
| Go back to equations!
112
What does a CV and SV > 0 mean
Project is over performing
| Go back to equations!
113
A distinct, scheduled portion of work performed during the course of a project
What is an activity
114
The work defined at the lowest level of the work breakdown structure for which cost and duration are estimated and managed
What is a work package
115
the element in PDM (i.e. network diagrams
What is an activity
116
What is the difference btwn an activity and a work package
An activity describes the work in the work package
117
What does an SPI of 0.82 mean
The project is progressing at 82% of the work expected
118
A CPI of 0.8 means
For every $ we spend, we are only getting 80 cents on the dollar
