Cost Mgmt Input/Output Definitions

Question 1

Activity Cost Estimates

Answer 1

These are quantitative assessments of the probably costs required to complete project work. Can be presented in detailed or summary form and will usually contain:

• Direct Labor
• Materials
• Equipment
• Services
• IT, etc.

Question 2

Basis of Estimates

Answer 2

Documentation of assumptions made, known constraints, range of estimates, and confidence level of estimate.

Question 3

Budget Forecasts

Answer 3

Either a calculated EAC value or a bottom-up EAC value is documented and communicated to stakeholders. EAC or the estimate to completion is calculated using one of the formulas
EAC = AC + (BAC – EV)
EAC = AC + (BAC – EV)/CPI
EAC = AC + (BAC – EV)/CPI*SPI

Question 4

Change Requests

Answer 4

If during the course of executing the project, issues develop that require a change to the scope, budget, or schedule, or quality, then change requests are developed. Note that the change requests are made in the Executing Progress Group, but are evaluated and either accepted or rejected as part of the Monitoring & Controlling Progress Group. If they are accepted, these changes get fed into the Executing Progress Group once again.

Question 5

Contract

Answer 5

A contract is a mutually binding agreement that obligates the seller to provide the specified product or service or result and obligates the buyer to pay for it.

Question 6

Cost Performance Baseline

Answer 6

A specific version of the time-phased budget used to compare actual expenditures to planned expenditures to determine if preventive or corrective action is needed to meet the project objectives.

Question 7

EEF

Answer 7

This is the “company culture”, or factors that are external to the project but which influence the project’s success. These can include the company databases and, in particular, the project management software used by the company. Think of them as “soft copy” (software and the company culture or “unwritten rules” that govern how work is done).

Question 8

Human Resource Plan

Answer 8

The human resource plan contains the following elements
• Roles and responsibilities for the project
• Project organizational charts
• Staffing management plan (resource calendars, training needs, criteria for recognition and rewards)

Question 9

OPA

Answer 9

Written procedures, policies, and guidelines that are used by the company to guide all operations, including projects. Lessons learned would be an important part of OPA. Think of the operational process assets as the “hard copy” (written procedures)

Question 10

Project Document Updates

Answer 10

Any time there has been a change that will impact the project it must be documented and the stakeholder’s must be informed.

Question 11

Project Funding Requirements

Answer 11

Funding requirements for each period (quarter or year) are derived from the cost baseline.

Question 12

Project Management Plan

Answer 12

The document that describes how procurement processes from developing procurement documentation through contract closure will be managed.

Question 13

Project Management Plan Updates

Answer 13

If the project management plan is changed or the performance baseline is changed, then updates to these are made.

Question 14

Project Schedule

Answer 14

The project schedule contains information on required timelines or mandated deliverable dates. This can be in the form of a bar chart, project schedule network diagram, and/or a milestone chart.

Question 15

Resource Calendars

Answer 15

A calendar of working days and nonworking days that determines those dates on which each specific resource is idle or can be active. Typically defines resource specific holidays and resource availability periods.

Question 16

Risk Register

Answer 16

The risk register is an output of the 11.2 Identify Risks process, and is updated as part of the 11.3 Perform Qualitative Risk Analysis process. It is further updated as part of this process by additional of the following categories of information: probabilistic analysis of the project, probability of achieving cost and time objectives, prioritized list of quantified risks, and trends in quantitative risk analysis results.

Question 17

Scope Baseline

Answer 17

The scope baseline is a component of the PM Plan. Components of the scope baseline include:

• Project Scope Statement: this includes the product scope description, the project deliverables, and defines the product user acceptance criteria.
• WBS: this defines each deliverable and the decomposition of the deliverables into work packages.
• WBS Dictionary: this has a detailed description of work and technical documentation for each WBS element.

Question 18

Work Performance Information

Answer 18

Information and data, on the status of the project schedule activities being performed to accomplish the project work. Information includes:

• Status of deliverables
• Implementation of change requests
• Corrective & Preventive actions/ Defect Repair
• Status of work completed
• Achieved value of technical performance measures

Question 19

Work Performance Measurements

Answer 19

Work performance measurements are used to produce project activity metrics to evaluate actual progress as compared to planned progress. These metrics include:
-	Planned vs. Actual
o	Technical Performance
o	Schedule Performance
o	Cost Performance