Flashcards
07 PROJECT COST MANAGEMENT
Flashcards do conjunto (32)
- 17.1 Plan Cost ManagementThe process that establishes the policies, procedures, and documentation
for planning, managing, expending, and controlling project costs. - 27.2 Estimate CostsThe process of developing an approximation of the monetary resources needed to
complete project activities. - 37.3 Determine BudgetThe process of aggregating the estimated costs of individual activities or work
packages to establish an authorized cost baseline. - 47.4 Control CostsThe process of monitoring the status of the project to update the project costs and
managing changes to the cost baseline. - 5Different stakeholders will measure project costs indifferent ways and at different times. For example, the cost of an
acquired item may be measured when the acquisition decision is made or committed, the order is placed, the item
is delivered, or the actual cost is incurred or recorded for project accounting purposes. - 6The cost management plan is acomponent of the project management plan and describes how the project
costs will be planned, structured, and controlled. The cost management processes and their associated tools and
techniques are documented in the cost management plan. - 7Cost estimates are aprediction that is based on the information known at a given point in time. Cost estimates
include the identification and consideration of costing alternatives to initiate and complete the project. - 8The accuracy of a project estimate will increase asthe
project progresses through the project life cycle. - 9A cost estimate is aquantitative assessment of the likely costs for resources
required to complete the activity. Cost estimates may be presented at the activity level or in summary form. - 10Analogous cost estimating uses thevalues such as scope, cost, budget, and duration or measures of scale such
as size, weight, and complexity from a previous, similar project as the basis for estimating the same parameter
or measurement for a current project. When estimating costs, this technique relies on the actual cost of previous,
similar projects as the basis for estimating the cost of the current project. It is a gross value estimating approach,
sometimes adjusted for known differences in project complexity. - 11Management reserves areintended to address the
“unknown unknowns” that can affect a project. The management reserve is not included in the cost baseline but
is part of the overall project budget and funding requirements. When an amount of management reserves is used
to fund unforeseen work, the amount of management reserve used is added to the cost baseline, thus requiring an
approved change to the cost baseline. - 12Activity cost estimates arequantitative assessments of the probable costs required to complete project
work. Cost estimates can be presented in summary form or in detail. Costs are estimated for all resources that
are applied to the activity cost estimate. - 13A project budget includesall the funds authorized to execute the project.
- 14The cost baseline isthe approved
version of the time-phased project budget, but excludes management reserves. - 15Earned value management (EVM) isbaseline, to form the performance baseline, which helps the project management team assess and measure
project performance and progress. - 16The total of the PV is sometimes referred to asthe performance measurement baseline
(PMB). The total planned value for the project is also known as budget at completion (BAC). - 17Earned value (EV) is a measure of• Earned value. Earned value (EV) is a measure of work performed expressed in terms of the budget
authorized for that work. It is the budget associated with the authorized work that has been completed.
The EV being measured needs to be related to the PMB, and the EV measured cannot be greater than the
authorized PV budget for a component. The EV is often used to calculate the percent complete of a project.
Progress measurement criteria should be established for each WBS component to measure work in
progress. Project managers monitor EV, both incrementally to determine current status and cumulatively
to determine the long-term performance trends. - 18The cost performance index (CPI) is aThe cost performance index (CPI) is a measure of the cost efficiency of budgeted
resources, expressed as a ratio of earned value to actual cost. It is considered the most critical EVM
metric and measures the cost efficiency for the work completed. A CPI value of less than 1.0 indicates a
cost overrun for work completed. A CPI value greater than 1.0 indicates a cost underrun of performance
to date. The CPI is equal to the ratio of the EV to the AC. The indices are useful for determining project
status and providing a basis for estimating project cost and schedule outcome. Equation: CPI = EV/AC - 19The schedule performance index (SPI) is aThe schedule performance index (SPI) is a measure of schedule efficiency
expressed as the ratio of earned value to planned value. It measures how efficiently the project team is
using its time. It is sometimes used in conjunction with the cost performance index (CPI) to forecast the
final project completion estimates. An SPI value less than 1.0 indicates less work was completed than
was planned. An SPI greater than 1.0 indicates that more work was completed than was planned. Since
the SPI measures all project work, the performance on the critical path also needs to be analyzed to
determine whether the project will finish ahead of or behind its planned finish date. The SPI is equal to
the ratio of the EV to the PV. Equation: SPI = EV/PV - 20The to-complete performance index (TCPI) isa measure of the cost performance that is required to be achieved
with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to
finish the outstanding work to the remaining budget. TCPI is the calculated cost performance index that is achieved
on the remaining work to meet a specified management goal, such as the BAC or the EAC. - 21PV Planned ValueThe authorized budget assigned to
scheduled work.
The value of the work planned to be
completed to a point in time, usually
the data date, or project completion. - 22EV Earned ValueThe measure of work performed
expressed in terms of the budget
authorized for that work.
he planned value of all the work
completed (earned) to a point in
time, usually the data date, without
reference to actual costs - 23AC Actual CostThe realized cost incurred for the
work performed on an activity during
a specific time period.
The actual cost of all the work
completed to a point in time, usually
the data date. - 24BAC Budget at CompletionThe sum of all budgets established
for the work to be performed.
The value of total planned work, the
project cost baseline. - 25CV Cost VarianceThe amount of budget deficit or
surplus at a given point in time,
expressed as the difference between
the earned value and the actual cost.
The difference between the value of
work completed to a point in time,
usually the data date, and the actual
costs to the same point in time. - 26SV Schedule VarianceThe amount by which the project is
ahead or behind the planned
delivery date, at a given point in
time, expressed as the difference
between the earned value and the
planned value.
The difference between the work
completed to a point in time, usually
the data date, and the work planned
to be completed to the same point
in time. - 27VAC Variance at CompletionA projection of the amount of budget
deficit or surplus, expressed as the
difference between the budget at
completion and the estimate at
completion.
The estimated difference in cost at
the completion of the project. - 28CPI Cost Performance IndexA measure of the cost efficiency of
budgeted resources
expressed as the ratio of earned
value to actual cost.
A CPI of 1.0 means the project is
exactly on budget, that the work
actually done so far is exactly the
same as the cost so far. Other values
show the percentage of how much
costs are over or under the budgeted
amount for work accomplished. - 29SPI Schedule Performance IndexA measure of schedule efficiency
expressed as the ratio of earned
value to planned value.
An SPI of 1.0 means that the project
is exactly on schedule, that the work
actually done so far is exactly the
same as the work planned to be
done so far. Other values show the
percentage of how much costs are
over or under the budgeted amount
for work planned. - 30EAC Estimate At CompletionThe expected total cost of completing
all work expressed as the
sum of the actual cost to date and
the estimate to complete. - 31ETC Estimate to CompleteThe expected cost to finish all the
remaining project work. - 32TCPI To Complete Performance IndexA measure of the cost performance
that must be achieved with the
remaining resources in order to meet
a specified management goal,
expressed as the ratio of the cost to
finish the outstanding work to the
budget available.
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- PMP PMP - All Chapters FlashCards sobre 07 PROJECT COST MANAGEMENT, criado por miguelabascal em 12-07-2013.
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