sabPMS#68_Estimate_Cost

sabPMS#68_Estimate_Cost

1. Cost Management Plan

2. Project Schedulle

   • resources needed to work: 1, time when byt something, 2, how spend during specific period of time

3. Human Resource Management Plan

   • including the quantity of resources needed and their skills

4. OPA´s

   • Historical Project cost

5. EEF´s

6. Risk register

   • Costs associated with the efforts to deal proactively with risks

7. Scope Baseline

   • details of scope and constraints

8. Activity cost estimates

   • Cost Base Line

9. Bottom up estimating

   • Detailed estimates for each part of an activity or work package

10. Analogous estimating

    • Use similar Project as tha basis for estimating

11. Expert Judgment

12. Parametric estimating

    • Uses a statistical relationship between relevant historical data and other variables to calculate a cost estimate for project work

13. Three-points estimating

    • Cost estimates based on three points with an assumed distribution provide an expected cost and clarify the range of uncertainty around the expected cost:
      • Tree estimates
        • Most likely (cM). The cost of the activity, based on realistic effort assessment for the required work and any predicted expenses.
        • Optimistic (cO). The activity cost based on analysis of the best-case scenario for the activity
        • Pessimistic (cP). The activity cost based on analysis of the worst-case scenario for the activity
      • Formulas
        • Tirangulas Distribution
          • cE = (cO-cM-cP) / 3
        • Beta Distribution
          • cE= ( cO+ 4cM + cP) / 6

14. Project management estimating Software

    • Any software used for estimating

15. Vendor bid analisys

    • Evaluating diferentes bid and choose one

16. Reserve analisys

    • Use of reserves to cover the cost and time risk in Project estimate
      • Contingency reserves
        • For known risks or undifinied risk
      • Management reserves

17. Cost Quality

    • Cost of work added to the Project to acommodate quality efforts

18. Group decisión-making techniques

    • Involving team members, improves accuracy beacuse they are the ones most likely to understand whats involved the effort

19. The cost involved in all the efforts needed to complete the project

    • Costs of quality efforts, Costs of risk efforts, Costs of the Project manager´s time, Costs of Project management activities, Costs directly associated with the Project (including labor, materials, training for the Project, computers), Overhead costs, Expenses for physical espaces

20. Type costs

    • Viariable Costs: These cost change with tha amount of production or the amount of the work
    • Fixed Costs: Do not change as production changes
    • Direct Costs: Atributable to the work on the project
    • Indirect Costs: Overhead ítems or costs incurred for the benefit of more tan one project

21. One point estimating

22. Determining Resources Cost Rates

    • Assume that the Project manager knowes the actual cost of labor of all resoruces: internal and external

23. Accuracy estimate

    • Estimate should be in a range
    • Rough Order of Magnitude (ROM) Estimate
      • Usually made during Project iniciating.
      • Typical range of ROM: -25% to +75 from the actual
    • Budget Estimate
      • Used during Project planning
      • Typical range of -10% to +25% from the actual
    • Definitive Estimate
      • During Project progress
      • Typical range +/- 10% or -5% to+10% from the actual

24. Basis of estimates

    • Soppoting detail of costs

25. Project documents updates

    • Project Plan

26. Other Numbers

    • Benefit Cost Ratio (BCR)
      • Amount of money a Project is going to make versus how much it wil cots tu build it.
    • Net Present Value
      • The actual value at a given time of the Project minus all of the cost associated with it. Includes time and labor.
    • Opportuniy cost
      • Money you don´t get becuse you chose no to do a project
    • Internal Rate of Return
      • Tha amount of money the Project will return to the company that is funding it. Percentage
    • Depreciation
      • The rate at which you Project loses value over time
    • Lifecycle costing
      • To figure out how much you expecct cost the Project before it starts