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MindMap Gallery 7PMP-Project Cost Management Summary

7PMP-Project Cost Management Summary

Provides guidance on how to manage project costs, including policies, procedures and planning, documentation for managing, spending and controlling project costs, units of measurement, accuracy of cost estimates, links to organizational procedures, control thresholds, performance measurement rules, process descriptions, reports Format.

Edited at 2021-05-31 19:07:20

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7PMP-Project Cost Management Summary

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Outline

PMP-Project Cost Management

Standardized cost management

ITTO

enter

1. Project Charter

2. Project management plan

progress management plan

risk management plan

3. Business environment factors

4. Organizational process assets

Tools & Techniques

1. Expert judgment (experienced drivers guide me)

2.Analytical techniques

3.Meeting

output

1. Cost management plan

unit of measurement

Accuracy

Organization Program Links

control threshold

performance measurement rules

report format

Other details

Estimate cost

ITTO

enter

1. Project management plan

cost management plan

quality management plan

Scope Baseline

2.Project files

Lessons Learned Register

Project schedule

Resource requirements

risk register

3. Business environment factors

4. Organizational process assets

Tools & Techniques

1. Expert judgment

2. Analogous estimation (similar projects in the past, low cost, less time-consuming, and low accuracy)

3. Parameter estimation (statistics of historical data, models and other variables)

4. Bottom-up estimation (specific and detailed estimation of individual work packages)

5. Three-point estimate (considering uncertainty and risk)

6.Data analysis

Analysis of alternatives (choose one A, B, or C)

Reserve analysis

Management reserves (unknown unknown risks)

Contingency reserves (known unknown risks)

quality cost

7. Project management information system

8. Decision-making (voting)

output

1. Cost estimation

Rough magnitude estimate (-25%~75%)

Budget estimate (-10%~ 25%)

Certainty estimate (-5%~10%)

2. Basis for estimation

3. Project file update

Hypothetical log

Lessons Learned Register

risk register

Control costs

ITTO

enter

1. Project management plan

cost management plan

cost basis

performance measurement benchmarks

2.Project files

Lessons Learned Register

3. Project funding requirements

4. Job performance data

5. Organizational process assets

Tools & Techniques

1. Expert judgment

2.Data analysis

Earned value analysis (actual schedule and cost performance compared with performance measures to derive status)

concept

EVM: Commonly used performance measurement method is earned value management

PV: planned value (what to do)

EV: Earned value (done)

AC: actual cost (spent)

index

Deviation analysis

Progress deviation: SV=EV-PV

Cost deviation: CV=EV-AC

Performance Analysis

Schedule Performance Index: SPI=EV/PV

Cost Performance Index: CPI=EV/AC

Deviation analysis (identify differences and decide whether corrective or preventive measures need to be taken by comparing planned costs with actual costs, focusing on the present)

Trend analysis (review changes in performance over time (improvement or deterioration), predict the future)

Reserve analysis (contingency reserves, management reserves)

3. Remaining performance index for completion (the cost performance index that the remaining work must achieve to achieve a specific goal)

concept

BAC: budget at completion

ETC: Cost budget required for completion

EAC: Estimate at Completion

index

Trend forecast

Atypical (no deviation will occur in the future)

ETC=BAC-EV

Typical (current deviation represents future trend)

ETC=(BAC-EV)/CPI

total cost of completion budget

new estimate

EAC=AC ETC

remaining estimate

EAC=AC (BAC-EV)

Use CPI

EAC=BAC/CPI

Calculated using SPI<1

EAC=BAC/(CPI*SPI)

Total Cost of Completion Variance

VAC=BAC-EAC

4. Project management information system

output

1. Job performance information

2. Cost forecast

3. Change request

4. Project management plan update

cost management plan

cost basis

performance measurement benchmarks

5. Project file update

Hypothetical log

Estimate basis

Cost Estimate

Lessons Learned Register

risk register

Budgeting

ITTO

enter

1. Project management plan

cost management plan

resource management plan

Scope Baseline

2.Project files

Estimate basis

Cost Estimate

Project schedule

risk register

3.Business documents

business documents

Benefit Management Plan

4. Agreement

5. Business environment factors

6. Organizational process assets

Tools & Techniques

1. Expert judgment

2. Cost summary

Cost estimates are rolled up to the work packages in the WBS to the control account to arrive at the total cost

3.Data analysis

contingency reserve

management reserve

4. Review of historical information (historical relationship between parameter estimation or analogy estimation)

5. Funding limit balancing (any funding restrictions on the project, balancing fund expenditures)

6. Financing

output

1. Cost basis

2. Project funding requirements

3. Project file update

Cost Estimate

Project schedule

risk register

step

1. Calculate the costs required for each schedule activity

2. Summarize the work package costs

3. Summarize the costs of each work package to obtain the cost of the control account

4. Sum up the costs of each control account to obtain the cost of the project

other