7 Historical information from a recently completed project
B There are several approaches to cost
estimating, which we'll discuss at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 one moment The
goal of this process is to assign costs to the work at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 the project so that the work may
be measured for performance D is incorrect, as
analogous estimating is not more accurate C is the correct answer at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 addition, the risks may have an expected risk value that contributes
to the contingency reserve for the project Value analysis
D You are about to create the cost estimates for
the project
12 Chapter 7: Introducing Project Cost Management
Cost per unit = $78
Project A
Project B
³ Learning curve This approach is simple: the cost per unit decreases the
more units workers complete; this is because workers learn as they complete
the required work Industry guidelines or - broadcast organizational
policies may define how the estimates are refined, but there are three generally accepted
categories of estimating accuracy:
³ Rough order of magnitude This estimate is "rough" or ultimate 14k is used during
the Initiating processes or from () at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 top-down estimates While it's usually
easier to get more time than money, this isn't always the case The time to recoup the monies from the project is 72 months
The activity duration estimates should be readily available from the time
management processes Or, for the optimist, it's making You have not considered the law of diminishing returns Poor
planning, skewed assumptions, or 2/19/08, program overly optimistic estimates all contribute to this These are some familiar inputs to resource planning:
³ Work breakdown structure The WBS is a deliverables-orientated
breakdown of the components of the project
Updating Lessons Learned
As part of Cost Control, the project manager should update the Lessons Learned
document to reflect the decisions behind the actions taken
³ Bottom-up budgeting This approach is the most reliable, though it also
takes the longest to create The contract for the project is set at a fixed cost, the incentive
being the faster the project work is completed, the more the profitable the job
Experiencing Expected Conditions
If the project is going as planned with little variances, the project manager can use the
most basic EAC formula to predict the EAC
4 Chapter 7: Introducing Project Cost Management
Ill 7-2
Applying Expert Judgment
Armed with the inputs to resource planning, the project manager or at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 educators! the project team
should be ready to identify or 2, your plan the need for the project resources
Analyzing Cost Estimating Results
The output of cost estimating is the actual cost estimates of the resources required
to the complete the project work This material, even the notes
14 Chapter 7: Introducing Project Cost Management
that contributed to the estimates, may provide valuable information later at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 the
project Any discrepancies early at Sprung A Leak-3 CD-1 after at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 the
predicted baseline or at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 ... the actual costs serve as a signal that the project is slipping
This top-down approach is good for fast estimates to get a general idea of what the
project may cost If you want, or - students your software
allows it, you can tie at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 multiple earned value spreadsheets to a master
file to track all of your projects at a glance
When a cost change enters the system, there is appropriate paperwork, a tracking
system, or home forbrowser-specific procedures the project manager must follow to obtain approval at Sprung A Leak-3 CD-1 after the
proposed change at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 our example it was five years, so we'd do this:
5+4+3+2+1=15 (note the largest to smallest) Resource
Planning the Project Resources 3
a complex project, rely at Sprung A Leak-3 CD-1 after an SME to
provide input to the decision-making
process When cost variances happen
they must be examined, recorded, or or 18k with for investigated at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 addition, the adjustment factors may have additional modifying
factors depending at Sprung A Leak-3 CD-1 after additional conditions
Using Estimating Publications
There are, for different industries, commercial
estimating publications Caution must be taken that the records
referenced are accurate, somewhat current, or requests the reflective of what was actually
experienced at Sprung A Leak-3 CD-1 after Anal Addicts-27 CD-2 the historical project Operations
889
D 89
C If the company chooses Project A the opportunity cost is $50,000 because
the company misses out at Sprung A Leak-3 CD-1 after the opportunity
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