SAB5#70_Control_Costs

SAB5#70_Control_Costs

1. When something unexpected comes up, you need to understand its impact on your budget and make sure that you react in the best way for your project. It's all about knowing how you are doing compared to your plan and making adjustments when necessary.

2. Work Performance Information

   • CV, SV, CPI, TCPI, VAC

3. Project Management Plan

   • * Cost Baseline * Cost Management Plan
   • You may find that you need to change the PM plan and its Cost Management subplan as a result of information coming from your project.

4. Project Funding Requirements

   • * Funding sources * Reserve Management * Budget * Expenses
   • On top of the baseline cost, you have to add some reserves to deal with known risks.

5. Work Performance Data

   • * Completed Work * Performance indicators * Technical Performance Measurement
   • This is the actual data being generated by your project. It tells how are you spending your budget right now.

6. Earn Value Management

   • Here’s where you measure how your project is doing compared to the plan. This involves using the earned value formulas to assess your project. * Estimate to Complete (ETC)? * Variance At Completion (VAC)?

7. PM Software

   • You can use software packages to track your budget and make it easier to know where you might run into trouble.

8. Cost Forecast

   • To find the changes you need to make in your project
   • EAC

9. OPA's

   • * Templates * Organizational Processes * Historical Data
   • Your company probably has some guidance on how to control costs and report on your budget.

10. Change Requests

11. Project Management Plan Update

    • * Cost Baseline * Cost Management Plan

12. Project Documents Update

    • * Costs Estimation

13. OPA's Update

    • * Learned Lessons * Finantial Databases

14. Forecasting

    • Use the information you have about the project right now to predict how close it will come to its goals if it keeps going the way it has been. Forecasting uses some earned value numbers to help you come up with preventive and corrective actions that can keep your project on the right track.

15. Performance Reviews

    • Reviews are meetings where the project team reviews performance data to examine the variance between actual performance and the baseline. Earned value management is used to calculate and track the variance.

16. To-complete Performance Index (TCPI)

    • The to-complete performance index (TCPI) is a calculation that you can use to help you figure out how well your project needs to perform in the future in order to stay on budget.

17. Reserve Analysis

    • Throughout your project, you are looking at how you are spending versus the amount of reserve you’ve budgeted. You might find that you are using reserved money at a faster rate than you expected or that you need to reserve more as new risks are uncovered.

18. Keep in mind that control means MEASURE!

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