Professional Documents
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COST
V 1.0
Learning Objectives
Upon completion of this topic you will learn about
The processes, activities and documentation items for Project Management Cost Elements (and deliverables) for Project Cost Management Tools and techniques of the key activities of the Project Management Cost
Cost Management
Project Cost Management includes the processes involved in planning, estimating, budgeting and controlling costs so that the project can be completed within the approved budget.
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Cost
Estimate Cost: The process of developing an approximation of the monetary resources of Estimate Cost: The process of developing an approximationneeded to complete project activities. Determine Budget: The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline. Control Cost: The process of monitoring the status of the project to update the project budget and managing changes to the cost baseline.
Estimate Cost
Estimate Inputs
Commercial database
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Estimates made at the work-package of the WBS and rolled up Estimates made at the work package of the WBS and rolled up Very accurate
Determine Budget
document
Determine Budget
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Tools
The expenditure of funds should be reconciled with any funding limit The expenditure of funds should be reconciled with any funding limit of the commitment of funds for the project. A variance between funding limits and the planed expenditures will sometimes necessitate the resc heduling of work to level out the rate of expenditures.
Determine Outputs
Cost Performance Baseline
A time-phased budget that is used tod measure and monitor cost performance on a project The approved cost estimates Displayed graphically as cumulative costs over time Displayed as an S-Curve
Budget
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Funding Requirements
Total and periodic funding requirements, are derived from the baseline and can established cost to exceed, usually by a margin to allow for either early progress or cost overrun.
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Control Costs
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Tools
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Tools
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Abbr Name Formula Good Bad Abbr. Name Formula Good Bad
EV E arn Va lu e BA C x Perc ent Compl ete NA NA PV Pla nn ed Valu e BA C x Per c ent Du r at ion NA NA CV C o s t Var i anc e EV- A C + v e ve S V S ch e du le Var i an ce EV- P V + v e ve CP I C o s t Pe r f o r m a nc e I nd ex EV / AC > 1 <1 SPI Sch edu le Per for ma nc e I nd ex EV /PV >1 <1
CV % C o s t Var i anc e P e r ce n t age CV / EV +v e v e CV % C o s t Var i anc e P e r ce n t age CV / EV +v e - v e S V% S ch e du le Var i an ce Pe r c e nt age S V/ P V + v e-ve EA C E s tim a te at Co m pl e ti o n BA C/ C P I < B AC > B AC VAC Var i an ce at C o m ple t io n BA C- E AC + v e ve ET C E stima te t o C omple te EA C-A C NA NA
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Question s
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