Planning and Managing Project Budget Flashcards
Tools and Techniques for Estimating project cost
Analogous estimates - look at previous Bottom-up estimating- determine at lowest level Parametric Estimating- 3 Part Estimating- takes risk factors into account Expert Judgement Data Analysis PMIS Decision Making Techniques
Bottom Up Estimates
determine cost at lowest level and roll up
Use work breakdown structure
materials, labor, and contingency = total for workpackage
Cost aggregation
like bottoms up analysis
Reserve Analysis
Data Analysis for Estimating project cost
contingency reserves
management reserves
Tools & Techniques for Cost Control
Expert Judgement
Data Analysis- Reserve analysis, variance, trend analysis, earned value analysis
To-Complete Performance Index
PMIS
Reserve Analysis
Determine if reserves are good
Variance Analysis
actual vs planned performance (cost and schedule)
Trend Analysis
project performance over time, improving or declining
Earned Value Analysis
scope, cost, schedule
compare actual vs baseline
To-Complete Performance Index (TCPI)
work left / money left
Cost Variance (CV)
PV= planned value- value of work planned for now EV= earned value AC= actual cost - total incurred up to date
To-Complete Performance Index (TCPI)
work left / money left
what cost performance needs to be to complete on goal
TCPI >1 performance need to be better than planned to meet goal
if TCPI > CPI need to improve
TCPI= (BAC-EV) / (BAC-AC)
Estimated at Completion (EAC)
forecasting, estimate to complete project based on cost so far
Cost Performance Index (CPI)
CPI > 1 = project earning more than has been spent
CPI = EV/AC
Estimated at Completion (EAC)
forecasting, estimate to complete project based on cost so far
ID areas with higher cost
