Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
20 Cards in this Set
- Front
- Back
|
Cost Estimating
|
IN: WBS, Scope Statement
OUT: Activity Cost Estimates |
|
|
Cost Budgeting
|
IN: Activity Cost Estimates
OUT: Cost Baseline |
|
|
Cost Control
|
IN: Cost Baseline
OUT: Cost Updates, Baseline Updates, Corrective Action |
|
|
Time Value of Money
|
Money that we spend today is more expensive than money we will spend 3 years from now.
PV = FV / (1+r)^n |
|
|
Net Present Value
|
Allows comparison of projects with very different budgets, durations, benefits.
Difference between present value of value of cash inflows and present value of cash outflows. |
|
|
Payback Period
|
Number of periods it takes to equate to the project cost.
$3,000 cost of project that provides $1000 per year benefit. Period here is 3 years. |
|
|
Internal Rate of Return (IRR)
|
Calculate financial alternatives based on interest rate of cash inflows and outflows.
Highest IRR is preferred. |
|
|
EV
|
Earned Value
Value of work actually completed. Multiply the % complete by the cost baseline to get the value of what we've done so far. |
|
|
PV
|
Planned Value
Value of work and planned to be completed. Comes from the Cost Baseline. (we dont know the value of the work or how much is complete) |
|
|
AC
|
Actual Cost
What actual costs that have incurred. (we know the completion of work done and its value) |
|
|
EAC
|
Estimate at Completion
BAC/CPI What we think we will actually spend when the project is done. |
|
|
CPI
|
Cost Performance Index
EV/AC Less than 1 means bad, means project cost (AC) more its value (EV). |
|
|
CV
|
Cost Variance
EV-AC Less than 1 means bad, means project cost (AC) more its value (EV). |
|
|
SV
|
Schedule Variance
EV-PV Less than 1 means bad, means our current completion (EV) is less than planned (PV). |
|
|
SPI
|
Schedule Performance Index
EV/PV Less than 1 means bad, means our current completion (EV) is less than planned (PV). |
|
|
Standard Deviation
|
(P-O)/6
Gives the confidence level at which we can give an estimate. Greater the number, the greater the distance between estimates and the greater the risk. |
|
|
Cost Baseline
|
Lists amount to spend on every WBS entry in every day of the project.
Also allows you to calculate how much value we should have created by a certain date (the heart of EV). |
|
|
BAC
|
Budget at Completion
Total approved budget for project |
|
|
Variance at Completion
|
BAC-EAC
Zero is the best result. |
|
|
Time Value of Money
|
PV = FV / (1+r)^n
r=interest rate n=time in periods What money we spend now, what is it worth in the future. Good calculation for projects whose expenses are well in the future. |
