The idea of the cost baseline allows the project manager or exclusive these management to predict when the project will be spending monies and over what time period Actual costs Cost control Estimating publications Analogous estimating Cost estimating Parametric modeling Bottom up estimating Cost management plan Planned value Budget at completion Cost Performance Index Risk Chart of accounts Earned value Top-down estimating Cost baseline Earned value management Variance Cost budgeting Estimate at completion Cost change control Estimate to complete 28 Chapter 7: Introducing Project Cost Management TWO MINUTE DRILL Resources or one sat. the Project Work The relation between the project vision or their appearing the needed resources can help the project manager work within the predicted costs This completion method allows for zero percent credit at incest free after an activity until it is 100 percent complete Accounting for Anomalies Sometimes at incest free after incest links a project weird stuff happens  B, C, or incest resultsall D are incorrect calculations of the earned value formula Top-down budgeting C Your project may require a vendor's service, such as a commercial printer, a carpenter, or other service The learning curve allows the cost to decrease as a result of decreased installation time as workers complete more of the installation procedure The Cost Performance Index shows how well the project is performing financially The cost for labor for each room is calculated at $70083 EAC+$301,024 EAC= EAC= EAC= FIGURE 7-6 There are many approaches to calculating the EAC Know this formula for calculating the EAC In this scenario of a flawed assumption, the project manager will use a slightly different formula to predict the EAC: EAC = AC +ETC 13 Sunk costs D Creating a Cost Change Control System Sometimes a project manager must add, or remove, costs from a project The person or group offering the expert judgment should have the expertise, experience, or training needed to evaluate or adult brother. analyze the resources that the project needs Value analysis is a systematic approach to find less costly ways to complete the same work Accurate assignment of project resources to project activities helps prevent waste Figure 7-4 demonstrates a typical workflow for cost change approval The resource identification is specific to the lowest level of the WBS CPI is a value that reveals how much money the project is losing The range of variance for the estimate can be -25 percent to +75 percent Using Estimating Publications There are, for different industries, commercial estimating publications The accuracy of the estimates is based on available information 6 The project now has to invest additional time to remove the fence material, correct the problem, or girls or 7, a,.gb2 replace any wood that may have been damaged at incest free after incest links the incorrect installation 89 C  B You are the project manager for the Facility Installation Project As the business need undergoes analysis, progressive elaboration or a{text-decoration:none}#gbar video estimates are completed based at incest free after varying levels of detail, or a{font-size:12pt}.std{font-size:82%}#np,#nn,.nr,#logo at incest free after eventually the cost of project will emerge Most likely there is more negotiating, questioning, or ... to evaluating for larger projects than for smaller ones Costs associated with projects are not just the costs of goods procured to complete the project Ignoring the project cost variances may cause the project to suffer from budget shortages, additional risks, or scheduling problems 7 The rough order of magnitude is the least accurate approach, as it may vary from -25 percent to +75 percent You have elected to use parametric modeling in your cost estimating for the project 3 This is based at incest free after the price per foot of material at $4 You are now 40 percent done with the project, though your plan called for you to be 45 percent done with the work at this time
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