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2 - Plan and Manage Budget and Resources
Terms in this set (17)
uses the cost of a previous project with similar scope or activities to predict the cost of future activities
Relies on the statistical relationship that exists between historical information and variables so as to arrive at an estimate for parameters such as duration and cost
Estimates the cost of individual activities then "rolls up" to higher levels
Incorporates three types of estimates into a singular cost estimate scenario: most likely, optimistic, and pessimistic
Analogous Estimating Advantage
Can ensure no work is inadvertently omitted from work estimates
Analogous Estimating Disadvantage
Can sometimes be difficult for lower-level managers to apportion cost estimates
Bottom-up Estimating Advantage
Is accurate and gives lower-level managers more responsibility
May be time consuming and can be used only after the WBS has been well-defined
Parametric Estimating Advantages
Is not time consuming
Parametric Estimating Disadvantages
May be inaccurate, depending on the integrity of the historical information used.
Common Estimate Types
Rough Order of Magnitude (ROM), Definitive Estimate (Control / Detailed), Phased Estimate
rough order of magnitude (ROM) estimate
A cost estimate, performed early in the project, of the completion cost of the project; the tolerance range is -25% to +75%.
An estimating technique that assigns a cost estimate to each work package in the project WBS. This is the most accurate of the cost estimating techniques, which typically falls within −5 percent and +10 percent of the actual budget.
allows the use of a less-detailed estimate for some later parts of the work, whereas work that must be done earlier in the PLM is estimated more accurately.
The framework, functions, and processes that guide project management activities in order to create a unique product, service, or result to meet organizational, strategic, and operational goals
Project Compliance Plan
A sub-plan of the project management plan to classify compliance categories, determine threats to compliance, analyze consequences of noncompliance and determine necessary approach and action to address compliance needs
Funding Limit Reconciliation
The process of comparing the planned expenditure of project funds against any limits on the commitment of funds for the project to identify any variances between the funding limits and the planned expenditures.
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