Planning Cost

Planning Cost

1. Plan Cost Management

   • IP:3, I:4, T&T:3
   • M: Guidence and direction
   • Input
     • Project Management Plan (Scope and Schedule Baselines)
     • Project Charter (Summary Budget, Approval Rrequirements)
     • EEF/OPA: Structure, market conditions, exchange rates, PMIS, financial database, control procedures
   • Output: Cost Management Plan
     • 1. Units of measure
     • 2. Level of precision
     • 3. Level of accuracy
     • 4. Organizational procedures links (control account)
     • 5. Control thresholds (percentage deviations)
     • 6. Rules of performance measurement (EVM)
     • 7. Reporting formats
     • 8. Process descriptions
     • 9. Additional details (fluctuations)

2. Estimate Cost

   • Input
     • CMP: method and level of accuracy
     • Scope Baseline
       • PSS: Indirect vs Direct Costs
       • Limited Budget
       • Contractual, legal
         • health
         • safety
         • Security
         • Environmental
         • license
         • permits
     • Human resource management plan (Rates)
     • Project Schedule (resource and their durations
     • Risk Register (negative risk event/potential opportunities
     • EEF/OPA: market conditions, published commercial information, standar costs
   • Output: Activity cost estimates (qualitative assessments of probable for all resources)
   • Output: Basis of estimates (how the costs estimates was derived)
     • Base
     • Assumptions
     • Constrains
     • Range
   • Output: Project documents updates
     • Risk register
   • M: Prediction of amount of cost
   • IP:6, I:7 T&T: 10

3. Determine Budget

   • IP:8, I:9, T&T:5
   • M: Aggregating to establish an authorized cost baseline
   • Input
     • CMP: Manage & Control
     • Scope Baseline (funding constrains)
     • PS: activities, milestones, workpackages and control accounts to aggregate costs to the calendar periods
     • Resource calendars (resources costs ocer the duration)
     • OPA: budgeting, tools, reporting
     • Agreements (procurements products, services or results)
   • Output: Cost Baseline
     • Without Management reserves
   • Output: Project Funding Requirements
     • May include the source (s) of funding
   • Output: Project documents updates
     • Risk Register
     • Activity cost estimates
     • Project schedule