摩纳哥|官方

                        Home
                        Project Cost Management

                        FREE TRIAL - ONLINE PMP COURSE

                         
                        Your 10 day trial access includes:
                        • Guided learning
                        • Access to videos
                        • Practice exams
                        • Support from the PreparePM team

                        Project Cost Management

                        PREV: Schedule       UP NEXT: Risk


                        This chapter covers key concepts related to Project Cost Management.

                        1. The knowledge area of Project Cost Management consists of the following processes -

                          Project Cost Processes

                          Process Project Phase Key Deliverables
                          Plan Cost Management Planning
                          Estimate Costs Planning Activity Cost Estimates,Basis of estimates
                          Determine Budget Planning Cost performance baseline
                          Control Costs Monitoring and Controlling Work performance measurements
                           
                        2. Alternative identification process identifies other solutions to an identified problem.
                        3. Value Analysis approach is used to find more affordable, less costly methods for accomplishing the same task.
                        4. The Estimate Costs process takes the following inputs -
                          • Scope baseline
                          • Project schedule
                          • Human resource plan
                          • Risk register
                          • Enterprise environmental factors
                          • Organizational process assets
                        5. Depreciation is technique used to compute the estimated value of any object after few years. There are three type of depreciation techniques. These are
                          • Straight line depreciation The same amount is deprecated (reduced) from the cost each year.
                          • Double-declining balance - In the first year there is a higher deduction in the value - twice the amount of straight line. Each year after that the deduction is 40% less than the previous year.
                          • Sum of year depreciation - Lets say the life of an object is five years. The total of one to five is fifteen. In first year we deduce 5/15 from the cost, in second year we deduce 4/15, and so on.
                        6. Analogous Estimating is an estimating technique with the following characteristics -
                          • Estimates are based on past projects (historical information)
                          • It is less accurate when compared to bottom-up estimation
                          • It is a top-down approach
                          • It takes less time when compared to bottom-up estimation
                          • It is a form of an expert judgment
                        7. In Parametric Modeling Estimation, you use a mathematical model to make an estimate. It is of two types.
                          • Regression Analysis
                          • is a mathematical model based upon historical information.
                          • Learning Curve model is based upon the principal that the cost per unit decreases as more work gets completed.
                        8. Bottom up estimation is same as WBS estimation. It involves estimating each work item and adding the estimates to get the total project estimate.
                        9. You can expect five to ten questions related to Earned Value Management. These are generally pretty simple once you have good understanding of the concepts, and remember the formulae. These formulae are explained below.

                        10. Planned Value (PV) refers to what the project should be worth at this point in the schedule. It is also referred as BCWS (Budgeted Cost of Work Scheduled).
                        11. Earned Value (EV) is the physical work completed to date and the authorized budget for that. It is also referred as BCWP (Budgeted Cost of Work Performed).
                        12. Actual Cost (AC) is the actual amount of money spent so far. It is also referred as ACWP (Actual Cost of Work Performed).
                        13. Estimate At Completion (EAC) refers to the estimated total cost of the project at completion.
                        14. CPI refers to Cost Performance Index. It is defined as
                            CPI = EV/AC
                          If CPI is less than 1, this means that the project is over budget.
                        15. BAC refers to Budget at Completion. It is related to EAC.
                            EAC = BAC/CPI
                        16. ETC refers to Estimate to Completion. It is defined as
                            ETC = EAC - AC
                        17. CV refers to Cost Variance. It is defined as
                            CV = EV - AC
                        18. SV refers to Schedule Variance. It is defined as
                            SV = EV - PV
                          Negative cost or schedule variance means that project is behind in cost or schedule.
                        19. SPI refers to Schedule Performance Index. It is defined as
                            SPI = EV/PV
                        20. VAC refers to Variance At Completion. It is defined as
                            VAC = BAC - EAC
                        21. The process of Cost budgeting defines time phased cost estimates for the project. For example, in the first month the project will require $10,000. Cost estimating involves defining cost estimates for tasks. Cost budgeting defines cost estimates across time.
                        22. The tools and techniques used for Estimate Costs are -
                          • Expert judgment
                          • Analogous estimating
                          • Parametric estimating
                          • Bottom-up estimating
                          • Three-point estimates
                          • Reserve analysis
                          • Cost of quality
                          • Project Management estimating software
                          • Vendor bid analysis
                        23. Cost baseline refers to what is expected to be spent on the project. It is usually an S-curve. That is the expenditure is less in the beginning, and the end. The expenditure is maximum during the middle of the project.
                        24. The after project costs are called life cycle costs.

                        Questions on Project Cost Knowledge area are available in Cost Questions.

                        UP NEXT: Risk

                        Upcoming Classes

                        Jun 4
                        Dallas - 1 Day Boot Camp

                        12400 Coit Road
                        PreparePM Training Center
                        Dallas, TX 75251
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 9
                        Denver - 1 Day Boot Camp

                        10004 Park Meadows
                        PreparePM Training Center
                        Centennial, CO. 80124
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 9
                        Phoenix - 1 Day Boot Camp

                        4615 East Elwood Street
                        PreparePM Trainin Center
                        Phoenix, AZ. 85040
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 10
                        Atlanta - 1 Day Boot Camp

                        859 Mount Vernon Parkway
                        Preparepm Training Center
                        Atlanta, GA 30328
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 15
                        Chicago - 1 Day Boot Camp

                        203 North LaSalle
                        PreparePM Training Center
                        Chicago, IL. 60601
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 15
                        San Francisco - 1 Day Boot Camp

                        One Front Street
                        PreparePM Training Center
                        San Francisco, CA. 94111
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 17
                        Baltimore - 1 Day Boot Camp

                        8830 Stanford Blvd.
                        PreparePM Training Center
                        Columbia, MD. 21045
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 17
                        Houston - 1 Day Boot Camp

                        11451 Katy Freeway
                        PreparePM Training Center
                        Houston, TX 77079
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 18
                        Minneapolis - 1 Day Boot Camp

                        435 Ford Road
                        PreparePM Training Center
                        Minneapolis, MN. 55426
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 19
                        Raleigh - 1 Day Boot Camp

                        4 Copley Parkway
                        PreparePM Training Center Morrisville, NC 27560
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 24
                        Orlando - 1 Day Boot Camp

                        8325 South Park Circle
                        PreparePM Training Center
                        Orlando, FL. 32819
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 29
                        Detroit - 1 Day Boot Camp

                        26261 Evergreen Road
                        PreparePM Training Center
                        Southfield, MI. 48076
                        8:00 AM-6:00 PM

                        Purchase

                        Jun 30
                        Houston - 1 Day Boot Camp

                        11451 Katy Freeway
                        PreparePM Training Center
                        Houston, TX 77079
                        8:00 AM-6:00 PM

                        Purchase

                        Jul 1
                        New York - 1 Day Boot Camp

                        63 West 35th Street
                        PreparePM Training Center
                        New York, NY. 10001
                        8:00 AM-6:00 PM

                        Purchase

                        Jul 6
                        Seattle - 1 Day Boot Camp

                        1700 7th Avenue
                        PreparePM Training Center
                        Seattle, WA. 98101
                        8:00 AM-6:00 PM

                        Purchase

                        For more dates and locations, please visit our individual city pages, or call our office to speak with a PreparePM representative.

                        Testimonials

                        • I took the boot camp last Monday thru Thursday and I passed my PMP, on my first attempt, on Friday afternoon.

                          Lorna Lavelle, PMP
                        • I took my bootcamp last week and passed the next day. My instructor was easily one of the best instructors I've ever had.

                          Timothy Hopkins, PMP
                        • I leveraged the course as somewhat of a capstone to my preparation period. I took the exam the very next day after the boot camp ended, and passed.

                          Acie Slade PMP

                                              Blog

                                              video

                                              Information

                                              game

                                              game

                                              Second-hand housing

                                              aviation

                                              society

                                              car