TC#68#69_Estimate_Cost_Determinate_Budget

TC#68#69_Estimate_Cost_Determinate_Budget

1. Estimate cost

   • Involded all the efrorts needed to complete the projet
     • Costo of quality effort
     • Costo of Risk effort
     • Costo of project manager time
     • Cost of Project manager activities
     • Cost directly associated with the Project: labor, material, training, et.
     • Expenses of physical office space
     • profit
     • Overhead cost: management salaries, general offices
   • Types
     • Fixed
       • No change_ set up, rent etc.
     • Variable
       • Depende of amount of work or amount of production
     • Direct
       • Attributable to the work of project
     • indirect
       • overhead ítems or costs incurred for the benefit of more that one project
   • Cost Management Plan
   • Scope base line
   • Project Schedule
   • Human Resource Management Plan
   • Risk Register
   • OPAs
     • Policies and historical records related to stimating: templates,process, procedures, lessons learned, and historical information
   • EEFs
     • Company culture or Systems that the Project will be have to deal or can use
   • Project Management Cost
   • Buttom up
   • PMBOK
     • Knowledge Area: Cost Management
     • Process Group: Planning
     • Process: Estimate Cost
   • one point
   • Analogous
   • Parametric
   • three point
   • Using ...
     • Project Management Software
     • Resource cost rate
     • Reserve Analysis
       • Reserve
         • For unknown risks
       • Contingence
         • for knows risks
     • Cost of quality
     • Group desition Making
       • most likely to understand what`s involved in the efforts
     • Accuracy to Estimates
   • Ranges ***
     • Rough Order of Mafnitude (ROM)
       • On Project Initiating
       • -25% to 75%
     • Budget Estimate
       • During project planing
       • -10% to 25%
     • Definitive Estimate
       • +/-10% or -5 +10%
   • Plan Management Cost
     • Cost estimates
     • Delivery cost plan

2. Determinate budget

   • PMBOK
     • Knowledge Area: Cost Management
     • Process Group: Planning
     • Process: Detrminate budget
   • Cost Managment Plan
   • Is total of cost needed to complete the project
   • Cost Base line
     • budget portion that the PM will have control over Include de funding requirements
   • Scope base line
   • Project Schedule
   • Risk Register
   • Cost Estimates
   • Basis of estimates
   • prerequisites ***
     • perform Risk Management activities
     • include reserves
     • include managment reserve
       • Additional funds to unforeseen risk
   • rollup cost package cost = Cost aggregation
     • 1. Totalize Cost Activity by Work Packagen= Work Package Estimate
     • 2. Totalize Work Package Cost by Control Account = Cotrol Account Estimate
     • 3. Totalize Control Accounts = Project Estimate
     • 4. Add Contingency Reserves = Cost Base line
     • 5. Add mangement reserves = Cost Budget
     • 6. Comparate to Parametric Estimate, Espert Judgment, historica record, etc. to sanity check
       • 7. Check constraint of project.