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Project MGMT- Chp 13
Terms in this set (33)
Developing an approximation of costs of the resources needed to complete project activities
Definition: Cost Estimating
aggregating the estimated costs of individual activities or work packages to establish a cost baseline
Definition: Cost Budgeting
Influencing the factors that create cost variances and controlling changes ti the project budget
Define: Cost Control
1) Setting a goal
2) Measuring progress
3) Comparing Actual with Planned
4) Taking Action and Recycling the Process
Project Control Cycle: 4 steps
1) Measure Cumulative resources consumed
2) Measure status and accomplishments
3) Compare measurements to projection and standards
4) Provide the basis for diagnosis and replanning
5) Frequent and periodic comparisons of actual progress and expenditures
Cost Control Requirements
Projects are faster/slower than P&L accounts
1) Vendor Invoices (delayed or inadequate info)
2) Overhead amortization and allocations may only come in every 3 months
3) Materials and travel expenses (paid in advance, in periods, etc.)
Issues in tracking expenses
Right at the beginning of life the life cycle of the project
When to implement a cost MGMT system?
1) Project Cash Flow
2) Direct labor costing
3) Overhead rate costing
Good Cost Control Implies good cost MGMT of....
provision in the project MGMT plan to mitigate cost and/or schedule risk
Additional Funding; MGMT Reserve
Ask client for a change order/budget change
Additional Funding: Funded contract change
Budget associated with contact changes where time contains prevent the necessary planning to corporate the change into the performance budget
Additional Funding: Undisputed budget
Contract tasks that have not been identified and/or authorized
Additional Funding: Unallocated budget
Milestones are events or stages of the project that represent a significant accomplishment
Definition: Milestone Analysis
Project is updated by linking task completion to the schedule baseline
Tracking Gantt Chart
A MGMT methodology for integrating scope, schedule and resources and for objectively measuring project performance and progress
Definition: Earned Value MGMT
1) Budgeted cost of work performed
2) Comparing it to the actual cost of the work performed
Performance is measured by determining what?
1) Clearly define each activity
2) Create usage schedules
3) Develop a time-phased budget (PV)
4) Total the actual costs of doing each task (AC)
5) Calculate both the cost vairance (CV) and schedule variance (SV)
EVM Steps (5 total)
Provides a comparison between planned and actual performance but does not include actual costs
Definition: Schedule Variance
Compares deviation only from the budget and does not provide a measure of comparison between work scheduled and work accomplished
Definition: Cost Variance
Accurate and up-to-date information is crtical in the use of EVM
Completion Values in EVM
1) Percentage Complete Rule
2) 50/50 Rule
3) 0/100 Rules
3 Completion values of EVM
Half of the budget for each element is recorded at the time that the work is scheduled to begin and the other half at the time the work is scheduled to be completed
Distortion is minimal for larger project
The 50/50 Rule
Project activity has a value of $0 until the activity is finished.
Project activity has a value of 100% of the budget for that activity once that activity is finished.
The 0/100 Rule
Short duration activities
What does 0/100 Rule work well with?
Large number of elements for a project
What does the 50/50 Rule work well for?
Variance threshold reports are _______ reports
The type of organization and characteristics of the project
Reporting Intervals depend on what?
Project driven organization interval
Non-project driven organization interval
1) Where are we today?
2) Where will we end up?
3) What are the present and future risks?
4) Variance analysis: Are there any special problems to be addressed and what can MGMT do?
Progress Reporting questions (4 Q's)
Analysis asks what is the problem and will be the impact.
Mitigation Plan what are corrective actions to be take and what are the expected results
Analysis vs. Mitigation Plan
Provision in the project MGMT plan to mitigate cost and/or schedule risk
Provides further detail with a modifier on what types of risk are meant to be mitigated
Varies by application of area
THIS SET IS OFTEN IN FOLDERS WITH...
Project MGMT- Chp 7
Project MGMT: Chp 8
Project MGMT- Chp 10
Project MGMT- Chp 14
OTHER SETS BY THIS CREATOR
Supply Chain Final pt. 1
Project MGMT- Chap 11