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31 Cards in this Set
- Front
- Back
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What are the processes in Cost Management and what process group does each process belong to?
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1. Estimate Cost, Planning
2. Determine Budget, Planning 3. Control Budget, Monitoring and Controlling |
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What are the major outputs of Cost Management function?
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1. Activity cost estimates
2. Cost performance baseline 3. Work Performance measurements and budget forecasts. |
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What are the inputs to Estimate Cost process in Cost Management?
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1. Human resource plan
2. Project schedule 3. Scope baseline 4. Risk register 5. Enterprise environmental factors 6. Organizational process assets |
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What are the outputs to Estimate Cost process in Cost Management?
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1. Activity cost estimates
2. Estimate bases 3. Update to project documents |
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What are the tools and techniques in Estimate Cost?
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1. Analogous estimating
2. Bottom-up estimating 3. Parametric estimating 4. Cost of quality 5. Reserve analysis and vendor bid analysis 6. Three-point estimates 7. Project management estimating software 8. Expert judgement |
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Activity cost estimate
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Costs for all resources needed to complete the project work, including equipment, facilities, information technology, labor directly applied to the project work, material and services.
Indirect cost costs and special categories such as allowances and contingency reserves, must also be included. May be documented in summary form or in details. |
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Estimate bases
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Bases of the cost estimates. High level elements must be included in the documentation:
* Assumptions made in making the estimates * Constraints that affected the estimates * Methods used to develop the estimates * Uncertainty and the confidence level assigned to an estimate |
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What are the inputs to Determine Budget process?
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1. Activity cost estimates and bases of estimates
2. Project schedule 3. Scope baseline 4. Contracts 5. Resource calendars 6. Organizational process assets |
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What are the outputs to Determine Budget process?
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1. Project funding requirements
2. Cost performance baseline 3. Update to project documents |
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Cost aggregation, reserve analysis, relationships from historical information, reconciliation of funding limits and expert judgement are tools and techniques for what process in Cost Management?
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Determine Budget process
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What are the inputs to Control Cost process in Cost Management?
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1. Project management plan: cost performance baseline
2. Work performance information 3. Project funding requirements 4. Organizational process assets |
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What are the outputs to Control Cost process?
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1. Work performance measurements
2. Change requests 3. Completion forecasts 4. Updates to organizational process assets and project documents such as management plan |
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Project performance is measured by comparing the project execution against performance measurement baseline. What are they?
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1. Cost baseline
2. Schedule baseline 3. Scope baseline |
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What is a variance and what is a common technique to ***** the cost of variance?
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Variance is a measurable deviation in the value of a project variable or parameter such as cost or schedule, from a known baseline or expected value.
Common technique to ***** the cost of variance is called the, earned value technique (EVT) or earned value management (EVM). |
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Cost performance
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Refers to how efficiently you are spending money on the project work, measured against the expectations set in the project management plan.
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Budget at completion (BAC)
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Total cost approved in the baseline. Also called planned budget.
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Earned value (EV) or BCWP)
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Also called budgeted cost of work performed (BCWP).
Value of the actually performed expressed in terms of approved budget for a project. EV = BAC x (work completed/total work required) |
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Actual Cost (AC)
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Also called actual cost of work performed (ACWP)
The total cost actually incurred until a specific point on the timescale in performing the work for a project. |
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Cost variance (CV)
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A measure of cost performance in terms of deviation of reality from the plan and it is obtained by subtracting the actual cost (AC) from the earned value (EV).
CV = EV - AC |
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Cost performance index (CPI)
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CIP indicates whether you are getting a fair value for your money. A measure of cost efficiency of a project by dividing earned value (EV) by actual cost (AC).
CP = EV / AC |
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What are the cost measurements used in calculating cost performance?
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1. BAC
2. EV 3. AC 4. CV 5. CPI |
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Planned Value
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The fraction of work planned to be completed at a given point in time. Also called budget cost of work scheduled (BCWS)
PV = BAC x (Time passed / Total schedule time) |
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Schedule Variance
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The difference between the work actually completed and the work planned to be completed at a given point in time.
SV = EV - PV |
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Schedule performance index (SPI)
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The actual work performed per planned work performed in terms of costs.
SPI = EV / PV |
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Estimate to complete (ETC)
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Estimate of what will be spent on the remaining project (or a project activity) based on the performance so far and the planned cost
ETC = BAC - EV |
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Estimate at completion (EAC)
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Estimate what will be spent on the whole project (or a project activity) based on the performance so far and the planned cost.
EAC = ETC + AC |
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To complete performance index (TCPI)
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Calculates the efficiency: remaining work per remaining funds
TCPI = (BAC - EV) / (BAC - AC) |
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Triple Constraints
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1. Scope
2. Schedule (Time) 3. Cost |
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Cost management big picture
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What's the purpose of contingency reserve?
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1. Deal with uncertainties in the duration used in the schedule and the costed used in the budget.
2. To deal with the overruns of the project objectives to meet the stakeholder expectations. |
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Compared to parametric estimation and bottom-up estimation, analogous estimation is:
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Less time consuming but also less accurate.
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