Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CAPM - Smitha > 7.4 Control Costs (Cost MGMT) > Flashcards

7.4 Control Costs (Cost MGMT) Flashcards

1
Q

what is 7.4 control costs?

A

monitoring the status of the project to update the project costs and managing changes to the cost baseline

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is the key benefit of 7.4 control costs?

A

the cost baseline is maintained throughout the project

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

when is 7.4 control costs performed during a project?

A

throughout

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

7.4 control costs - inputs

A
  1. project management plan (3)
  2. project documents (1)
  3. project funding requirements
  4. work performance data
  5. OPA’s
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what project management plan inputs are relevant to 7.4 control costs?

A

a. cost management plan
b. cost baseline
c. performance measurement baseline

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what project document inputs are relevant to 7.4 control costs?

A

a. lessons learned register

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

7.4 control costs - tools and techniques

A
  1. expert judgement
  2. data analysis (4)
  3. to complete performance index
  4. PMIS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what data analysis tools and techniques are relevant to 7.4 control costs?

A

a. earned value analysis (3)
b. variance analysis (2)
c. trend analysis
d. reserve analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what are project costs controls?

A
  1. influencing factors to create changes to cost baseline
  2. timely manner for change requests
  3. managing actual changes when they occur
  4. ensuring cost expenditures don’t exceed authorized funding by period, WBS component, activity or in total
  5. monitoring cost performance to isolate and understand variances
  6. monitoring work performance against funds expended
  7. preventing unapproved changes from being reported costs or resource usage
  8. informing stakeholders of approved changes and associated costs
  9. bringing in costs overruns
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what work performance data is relevant for 7.4 control costs?

A

which costs have been authorized, incurred, invoiced and paid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is earned value analysis (EVA)?

A
  • analysis that compares the performance measurement baseline to the actual schedule and cost performance
  • three key dimensions are developed and monitored
    1. planned value (PV)
    2. earned value (EV)
    3. actual cost (AC)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is planned value (PV)

A
  • earned value analysis dimension
  • authorized budget assigned to scheduled work
  • doesn’t include management reserves
  • total value of the PV sometimes referred to as the performance measurement baseline (PMB)
  • total planned value for project = budget at completion (BAC)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is earned value (EV)?

A
  • earned value analysis dimension
  • the budget associated with the completed authorized work
  • should be related to the performance measurement baseline (PMB)
  • cannot be greater than the authorized planned value (PV) budget for a component
  • often used to calculate percent complete of a project
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is actual cost (AC)?

A
  • earned value analysis dimension
  • total cost incurred in accomplishing the work that the earned value (EV) measured
  • no upper limit, whatever is spent to achieve the earned value (EV) is measured
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is variance analysis?

A

variance at completion (VAC) = budget at completion (BAC) - estimate at completion (EAC)

the explanation (cause, impact and corrective actions) for costs and variance at completion variances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is schedule variance (SV)?

A

SV = earned value (EV) - planned value (PV)

  • part of variance analysis
  • amount by which the project is ahead or behind the planned delivery date
  • will equal 0 at project completion
  • best used in conjunction with critical path method (CPM) scheduling and risk management
17
Q

what is cost variance (CV)?

A

CV = earned value (EV) - actual cost (AC)

  • part of variance analysis
  • amount of budget deficit or surplus
  • at end of project will be difference between budget at completion (BAC) and the actual amount spent
  • relationship between physical performance and costs spent
  • negative CV is difficult for project to recover from
18
Q

what are examples of variance analysis?

A
  1. schedule variance
  2. cost variance
  3. schedule performance index
  4. cost performance index
19
Q

what are the 3 key dimensions to earned value analysis (EVA)?

A
  1. planned value (PV)
  2. earned value (EV)
  3. actual cost (AC)
20
Q

what is schedule performance index (SPI)?

A

SPI = earned value (EV) / planned value (PV)

  • a measure of schedule efficiency
  • SPI < 1.0 means less work was completed than planned
  • SPI > 1.0 means more work was completed than planned
  • measures all project work, critical path needs to be analyzed to determine project completion
21
Q

what is cost performance index (CPI)

A

CPI = earned value (EV) / actual cost (AC)

  • measure cost efficiency for the work completed
  • most critical EVA metric
  • CPI < 1.0 indicates a cost overrun for work completed
  • CPI > 1.0 indicates cost underrun
22
Q

what is trend analysis?

A

examines project performance over time to determine if performance is improving or deteriorating

23
Q

what are examples of trend analysis?

A
  1. charts

2. forecasting

24
Q

what are estimates at completion (EAC) based on?

A

the actual costs incurred for the work completed, plus an estimate to complete (ETC) the remaining work

25
Q

what is the formula for:

estimate at completion (EAC) forecast for estimate to complete (ETC) work performed at the budgeted rate?

A

EAC = AC + [BAC - EV]

EAC = actual cost + [budget at completion - earned value]

26
Q

what is the formula for:
estimate at completion (EAC) forecast for estimate to complete (ETC) work performance at the present cost performance index (CPI)

A

EAC = BAC / CPI

estimate at completion = budget at completion / cost performance index

27
Q

what is the formula for:
estimate at completion (EAC) forecast for estimate to complete (ETC) work considering both schedule performance index (SPI) and cost performance index (CPI) factors

A

EAC = AC + [(BAC - EV) / (CPI x SPI)]

estimate at completion = actual cost = [(budget at completion - earned value) / (cost performance index x schedule performance index)]

28
Q

what is reserve analysis?

A

monitor the status of contingency and management reserves for the project to determine if these reserves are still needed or if additional reserves need to be requested

29
Q

what is to complete performance index (TCPI)?

A 
TCPI = (BAC - EV) / (BAC - AC)
TCPI = (budget at completion - earned value) / (budget at completion - actual cost)
TCPI = (BAC - EV) / (EAC - AC)
TCPI = (budget at completion - earned value) / (estimate at completion - actual cost)
  • 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
30
Q

7.4 control costs - outputs

A
  1. work performance information
  2. costs forecasts
  3. change requests
  4. project management plan updates (3)
  5. project document updates (5)
31
Q

what project management plan update outputs are relevant for 7.4 control costs?

A

a. cost management plan
b. cost baseline
c. performance measurement baseline

32
Q

what project document updates outputs are relevant for 7.4 control costs?

A

a. assumption log
b. basis of estimates
c. cost estimates
d. lessons learned register
e. risk register

CAPM - Smitha (65 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions