Project Cost Management Flashcards
Name the project cost management processes
Plan cost management
Estimate costs
Determine budget
Control costs
What is plan cost management
The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs
Key benefit of plan cost management
It provides guidance and direction on how the project cost will be managed throughout the project
Plan cost management inputs
Project management plan
Project charter
Enterprise environmental factors
Organizational process assets
Plan cost management tools and techniques
Expert judgment
Analytical techniques
Meetings
Plan cost management outputs
Cost management plan
What is estimate cost process
The process of developing an approximation of the monetary resources needed to complete project activities
Estimate costs key benefit
It determines the amount of cost required to complete project work
Estimate costs inputs
Cost management plan Human resource management plan Scope baseline Project schedule Risk register Enterprise environmental factors Organizational process assets
Estimate costs tools and techniques
Expert judgment Analogous estimating Parametric estimating Bottom up estimating Three point estimating Reserve analysis Cost of quality Project management software Vendor bid analysis Group decision-making techniques
Estimate cost outputs
Activity cost estimates
Basis of estimates
Project documents updates
Rough order of magnitude
-25% to 75%
When is analogous estimating used
When there is limited amount of detailed information about the project
What are contingency reserves
The part of the budget intended to address known unknowns. They are part of the cost baseline and overall funding requirements
What are management reserves
The amount of project budget withheld for management control purposes that are intended to address unknown unknowns. They are not included in the cost baseline but are part of the overall project budget and funding requirements
What are activity cost estimates
Quantitative assessments of the probable cost required to complete the project
What is the basis of estimates
Supporting details for activity cost estimates.
Includes
Documentation for basis of the estimate
All assumptions made
Any known constraints
Indication of the range of possible estimates
Indication of confidence level of the estimate
What is the determine budget process
Process of aggravating the estimated cost of individual activities or work packages to establish an authorized cost baseline
Determine budget key benefit
It determines the cost baseline against which the project performance can be monitored and controlled
Determine budget inputs
Cost management plan Scope baseline Activity cost estimates Basis of estimates Project schedule Resource calendars Risk register Agreements Organizational process assets
Determine budget tools and techniques
Cost aggregation Reserve analysis Expert judgment Historical relationships Funding limit reconciliation
Determine budget outputs
Cost baseline
Project funding requirements
Project documents updates
What is the funding limit reconciliation
The measurement of variance between the funding limits in the plant expenditures that necessitates the rescheduling of work to level out the rate of expenditures
What is the cost baseline
The approved version of the time face project budget, excluding any management reserves, which can only be changed or formal change control procedures and is the basis for comparison to actual results
