Topic 1
Why an estimate cost?
Estimate costs and determining a budget
Bottom up estimating
Used to create a total project estimate
Control costs
By analyzing and managing costs
Planned value
The value of work that should have been completed at specific point of time
What is budgeting
Allow or provide a particular amount of money in a budget.
Why is project scope Important?
it clarifies what will be done, and usually any limitations, dependencies and assumptions
Three point estimating
Looks at the best case, worse case then estimates are made
Earned value Management
Used to measure project effectiveness
Actual cost
The cost of work that has been completed
Cost performance baseline
Authorized time-phased budget used to measure, monitor, and control overall cost performance on the project.
Expert judgment
Used to analyze the information needed to develop the scope
Activity Cost estimate
the quantitative process of assessing the possible costs
Forecasting
Estimate of future projects performance
Earned value
Progress of a project and basis for cost analysis
Cost management plan
Document which will outline the criteria and activities
Analogous estimating
A high level estimate
Basis of estimates
analyzed and carefully calculated number that can be used for proposals, bidding on government contracts, and executing a project with a fully calculated budget.
Schedule and cost analysis
Compares amount of work done to time/cost of work to be done
Schedule performance index
Amount of work done at a single point of time
What will be the Control performance total
CPI=39/50
under budget/on track/over budget
50/39= 1.3
Under budget
Parametric estimating
Estimate of the quantity of the work and productivity
Why is estimating cost Important?
it help make the right commitment of dollars to a business activity.
Budget at completion
The amount you expect the project to cost
Performing cost analysis
Amount of work completed versus what was paid for work to get done
What is the Schedule Performance Index (SPI)?
SV=450/525
Ahead of schedule/on track/behind schedule?
SV=EV/PV
1.2
Ahead of schedule