Study Cards - Chapter 7 Flashcards Preview

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Flashcards in Study Cards - Chapter 7 Deck (30):
1

The cost management Planning activities are...

- Estimate costs
- Determine budget

2

The cost management M&C activities are

- Control costs

3

Life cycle costing

- total cost of ownership for the lifetime of the product

4

Value Engineering

- looking for substitutions to reduce cost, improve quality or both

5

Estimate Costs - Key Outputs

- Activity Cost Estimates
- Basis of Estimates

6

Estimate Costs - Techniques

- Duration estimate types
- Cost of quality
- PM estimating software
- Vendor bid analysis

7

Estimate Costs - Key Inputs

- Scope Baseline
- Project Schedule
- Human Resource Plan
- Risk Register

8

PERT for cost

Mean = (Co + 4Cml + Cp) / 6
Standard Deviation = (Cp - Co) / 6
Variance = σ² (Standard Deviation squared)

9

Four types of cost are

- Fixed
- Variable
- Direct
- Indirect

10

Analougous estimating

- Little Time and effort
- Less costly to create
- Less accurate
- Information may not be available

11

Bottom-up estimatinge

- Improved accuracy
- Provides team buy-in to estimates
- Longer time and higher cost to create
- Subject to padded estimates

12

Parametric estimating

- Can be more accurate than analogous
- Quicker than bottom-up
- Accuracy varies widely
- Can be more costly than analogous

13

Rough order of magnitude

-50% to +50% (Initiating)

14

Definitive estimate

-10% to +10% (Planning)

15

Determine Budget - Key Inputs

- Activity cost estimates
- Schedule
- Scope baseline

16

Determing Budget - Techniques

- Cost aggregation
- Reserve analysis
- Funding limit reconciliation

17

Determing Budget - Key Outputs

- Cost baseline
- Funding requirements

18

Basis of estimates

- Detailed analysis of how the cost estimate was derived
- Can include assumptions, constraints, ranges, confidence level

19

Reserve Analysis

- addresses management reserve and contingency reserve in a project
- Reserves are not included in earned value calculations

20

Funding limit reconciliation

- addresses the variance between funding limit and the planned expenditures for the project

21

Control Costs - Inputs

- PM Plan (cost baseline)
- WPI

22

Control Costs - Tools

- EVM
- Forecasting
- Performance reviews
- Variance analysis

23

Control Costs - Outputs

- Forecasts
- CRs
- Updates

24

Cost Baseline

- Cost of all activities
- Includes contingency reserves

25

Cost (Total) Budget

- Includes cost baseline
- Includes managment reserve

26

Negative variance

- Over budget or behind schedule

27

Positive variance

- Under budget or ahead of schedule

28

Index under 1

- Over budget or behind schedule

29

Index over 1

- Under budget or ahead of schedule

30

Accrual methods

Upfront/At Completion

- 50/50
- 20/80
- 0/100