Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

PMP Ch7 Cost Management > PMPCh7.4 - Control Costs > Flashcards

PMPCh7.4 - Control Costs Flashcards

1
Q

Question

A

Answer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is 7.4 Control Costs

A

process of monitoring the status of the project to update the project costs and managing changes to the cost baseline

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Benefit of Control Costs

A

provides the means to recognize variance from the plan in order to take corrective action and minimize risk.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

7.4 ITTO

A

7.4 ITTO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Memory 7.4 Control Costs: Input (4)

A

Please release the POW

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Memory 7.3 Control Costs: TT (6)

A

STEP Fang Pi

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Memory 7.3 Control Costs: O (6)

A

CCPPOW!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Input of Control Costs (4)Please release the POW:

A

PMPlan, Project funding reqt, OPA, Work performance data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

TT of Control Costs (4) STEP FP:

A

Reserve Analysis, To-complete Perf Index, Earned Value Mgmt, Performance Review, Forecasting, PM Software

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Output of Control Costs (6): CCPPoW

A

Cost forecast, change request, pm plan update, proj doc update, opa update, work performance info

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Updating budget requires knowledge of what

A

actual costs spent to date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Point of this process

A

Analyze relationship bw consumption of project funds to physical work being accomplished

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the key to effective cost control

A

management of the approved cost baseline and the changes to that baseline.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does project cost include

A

Influencing the factors that create changes to the authorized cost baseline; Ensuring that all change requests are acted on in a timely manner; Managing the actual changes when and as they occur; Ensuring that cost expenditures do not exceed the authorized funding by period, by WBS component, by activity, and in total for the project; Monitoring cost performance to isolate and understand variances from the approved cost baseline; Monitoring work performance against funds expended; Preventing unapproved changes from being included in the reported cost or resource usage; Informing appropriate stakeholders of all approved changes and associated cost; and Bringing expected cost overruns within acceptable limits.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Input of Control Costs (4)Please release the POW: PM Plan

A

Cost baseline, cost management plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Input of Control Costs (4)Please release the POW: Project funding requirements

A

projected expenditures plus anticipated liabilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Input of Control Costs (4)Please release the POW: Work Performance Data

A

information about project progress, such as which activities have started, their progress, and which deliverables have finished

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Input of Control Costs (4)Please release the POW: Organizational Process Assets

A

Existing formal and informal cost control-related policies, procedures, and guidelines; Cost control tools; and Monitoring and reporting methods to be used.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

TT of Control Costs (4) RSTEP FP: EVM (3 dimensions).

A

Earned Value Management EVM - methodology that combines scope, schedule, and resource measurements to assess project performance and progress. Integrates scope, cost, schedule baseline to form performance baseline. Helps PM team assess and measure project performance and progress. Three dimensions: Planned value, Earned Value, Actual Cost

20
Q

TT of Control Costs (4) RSTEP FP: EVM - PV

A

Planned Value - authorized budget assigned to scheduled work. Excludes mgmt reserve. At any moment, PV defines physical work that should have been accomplished. Total PV aka PMB - performance measurement baseline. Total PV aka BAC (budget at completion)

21
Q

TT of Control Costs (4) RSTEP FP: EVM - PV - PMB

A

Performance measurement baseline

22
Q

TT of Control Costs (4) RSTEP FP: EVM - PV - BAC

A

Budget at Completion

23
Q

TT of Control Costs (4) RSTEP FP: EVM - EV

A

Earned Value - budget associated with the authorized work that has been completed. EV cannot be greater than authorized PV.

24
Q

TT of Control Costs (4) RSTEP FP: EVM - AC

A

Actual cost - total cost incurred in accomplishing the work that the EV measured. No upper limit.

25
Q

TT of Control Costs (4) RSTEP FP: EVM - Schedule Variance

A

Schedule performance difference in EV and PV. amount by which the project is ahead or behind the planned delivery date, at a given point in time. SV = EV-PV. Use CPM - critical path methodology

26
Q

TT of Control Costs (4) RSTEP FP: EVM - Cost Variance

A

cost performance difference between earned value and the actual cost, CV=EV-AC

27
Q

TT of Control Costs (4) RSTEP FP: EVM - Schedule Performance Index

A

Schedule performance index = SPI. SPI = EV/PV. Measure of schedule efficiency expressed as the ratio of earned value to planned value. SPI < 1.0 = less work was completed than was planned. SPI > 1.0 more work completed than planned. Will also need to analyze performance on critical path to see if project will finish ahead of or behind planned finish date.

28
Q

TT of Control Costs (4) RSTEP FP: EVM - Cost Performance Index

A

CPI = EV/AC. Cost efficiency of budgeted resources, as a ratio of earned value to actual cost. Most critical EVM metric, measures cost efficiency for work completed. CPI > 1 is cost underrun good.

29
Q

TT of Control Costs (4) RSTEP FP: EVM - Estimate at Completion (EAC)

A

EAC = AC + Bottom up ETC (Estimate to Complete). Forecasts are generated, updated, and reissued based on work performance data (Section 4.3.3.2) that is provided as the project is executed. based on the actual costs incurred for work completed, plus an estimate to complete (ETC) the remaining work

30
Q

TT of Control Costs (4) RSTEP FP: EVM - Estimate at Completion (EAC) 3 types

A

EAC forecast for ETC work performed at budgeted rate, present CPI, and SPI & CPI

31
Q

EAC forecast for ETC work performed at budgeted rate

A

EAC = AC + (BAC – EV)

32
Q

EAC forecast for ETC work performed at present CPI

A

EAC = BAC / CPI

33
Q

EAC forecast for ETC work performed at SPI & CPI

A

EAC = AC + [(BAC – EV) / (CPI × SPI)]

34
Q

TT of Control Costs (4) RSTEP FP: EVM - TCPI

A

TCPI = (BAC – EV) / (BAC – AC). measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the remaining budget. . If it becomes obvious that the BAC is no longer viable, the project manager should consider the forecasted EAC. Once approved, the EAC may replace the BAC in the TCPI calculation. If the cumulative CPI falls below the baseline (as shown in Figure 7-13), all future work of the project will need to be performed immediately in the range of the TCPI (BAC) (as reflected in the top line of Figure 7-13) to stay within the authorized BAC

35
Q

TT of Control Costs (4) RSTEP FP: Performance Review (3)

A

compare cost performance over time, schedule activities or work packages overrunning and underrunning the budget, and estimated funds needed to complete work in progress 3 types of performance review: variance analysis, trend analysis, earned value performance.

36
Q

TT of Control Costs (4) RSTEP FP: Performance Review (3) - Variance Analysis

A

CV, SV, VAC. Cost, schedule, variance at completion. CV = EV-AC, SV = EV-PV, VAC = BAC - EAC. Why? Controlling cost is determining cause and degree or variance relative to cost baseline, deciding whether corrective/preventative action is required.

37
Q

TT of Control Costs (4) RSTEP FP: Performance Review (3) - Trend Analysis

A

examines project performance over time to determine if performance is improving or deteriorating. Graphical techniques.

38
Q

TT of Control Costs (4) RSTEP FP: Performance Review (3) - Earned Value Performance

A

compares the performance measurement baseline to actual schedule and cost performance

39
Q

TT of Control Costs (4) RSTEP FP: PM Software

A

used to monitor the three EVM dimensions (PV, EV, and AC), to display graphical trends, and to forecast a range of possible final project results.

40
Q

TT of Control Costs (4) RSTEP FP: Reserve Analysis

A

monitor the status of contingency and management reserves for the project to determine if these reserves are still needed or if additional reserves need to be requested.Additional risk analysis during the project may reveal a need to request that additional reserves be added to the project budget

41
Q

Output of Control Costs (6): CCPPoW - WPI

A

The calculated CV, SV, CPI, SPI, TCPI, and VAC values for WBS components, in particular the work packages and control accounts, are documented and communicated to stakeholders.

42
Q

Output of Control Costs (6): CCPPoW - Cost Forecasts

A

calculated EAC value or a bottom-up EAC value is documented and communicated to stakeholders

43
Q

Output of Control Costs (6): CCPPoW - Change Requests

A

Analysis of project performance may result in a change request to the cost baseline or other components of the project management plan. Change requests may include preventive or corrective actions, and are processed for review and disposition through the Perform Integrated Change Control process

44
Q

Output of Control Costs (6): CCPPoW - PMPlan Updates

A

Cost baseline & Cost mgmt plan. Cost baseline - Changes to the cost baseline are incorporated in response to approved changes . Cost Mgmt Pln - Changes to the cost management plan, such as changes to control thresholds or specified levels of accuracy required in managing the project’s cost, are incorporated in response to feedback from relevant stakeholders.

45
Q

Output of Control Costs (6): CCPPoW - Project Doc Updates

A

Cost estimates, and Basis of estimates.

46
Q

Output of Control Costs (6): CCPPoW - OPA Update

A

Causes of variances, Corrective action chosen and the reasons, Financial databases, and Other types of lessons learned from project cost control.

PMP Ch7 Cost Management (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions