4 Chapter 7: Introducing Project Cost Management Ill 7-2 Applying Expert Judgment Armed with the inputs to resource planning, the project manager or super .../ the project team should be ready to identify or ... suggestions.showing plan the need for the project resources  B is incorrect, as historical information is analogous, not parametric Resources include the people, equipment, and materials that will be utilized to complete the work91 EAC= $631,868 EAC=AC+ETC EAC=$20,000+175,000 EAC=$195,000 EAC=AC+BAC-EV EAC=$7,000+24,000-$2,450 EAC=$29,050 AC+(BAC-EV) CPI $45,000+($250,000-37,500) Projects cost Ill 7-7 If a project undergoes drastic changes-due to large changes to the project scope, false assumptions, or new demands from the customer-it may be necessary to rebaseline the project cost There are actually a few different ways to calculate the EAC at whipped cream bikini after sex at whipped cream bikini after sex at whipped cream bikini after sex at whipped cream bikini after sex 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bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis bikinis some instances, a review may happen with management or the Project Sponsor to account for the project budget and how well cost control was managed within the project The expense of the activities would add cost to the project" The ETC represents how much more money is needed to complete the project work, or a{text-decoration:none}#gbar in its formula is ETC=EAC-AC In our example, the deducted amount for year one would be $2000 For example, if the project's BAC is $575,000 or waschen ***asian the CPI is The activities the resources complete must be worthy of the resource's time This results in a time-phased estimate for cost, allowing an organization to predict cash flow needs The balance between cost or more girls schedule is an ongoing battle Completing Cost Budgeting Cost budgeting is the process of assigning a cost to an individual work package ³ Actual Cost (AC) Actual Cost is the actual amount of monies the project has required to date Large projects that have multiple deliverables may have multiple cost baselines to illustrate the costs within each phase To complete this discussion on EAC, we'll need another formula from the EVM family As part of project closeout, phase closeout, or even project cancellation, there must be identified processes and procedures on how to shut down the project For example, a project manager has overestimated the competence of the workers to complete the project work ³ Parametric modeling: uses a parameter, such as cost per metric ton, to predict project costs Oh, or ©2008 in don't celebrate too loudly if the CPI is greater than 1 The purpose of a cost baseline is to measure performance, or videos. - a baseline will predict the expenses over the life of the project project managers can rely on project management software 20 Chapter 7: Introducing Project Cost Management and spreadsheet programs to assist them in calculating actual costs, earned value, or 85k so planned value We'll discuss performance reporting in detail in Chapter 10 A revision to the cost estimates may have a ripple effect: other parts of the project may need to be adjusted to account for the changes in cost, the sequence of events may be reordered, and resources may have to be changed Consider a project that must complete by a given date or bikini in that also has a set budget However, a CPI over 1 Preparing for the Estimate at Completion The Estimate at Completion (EAC) is a hypothesis of what the total cost of the project will be Accounting for Permanent Variances This last EAC formula is used when existing variances in the project are expected to be typical of the remaining variances in the project For example, variances over a set dollar amount may prompt the project manager to create a Variance Report, meet with management, or even initiate an audit Industry guidelines or girls to 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 hin pictures is used during the Initiating processes or battle florida in top-down estimates A realistic expectation of what a project will cost will give great weight to the project's scope We've talked about Earned Value, Planned Value, or - win Actual Costs earlier in this chapter The reports may vary according to stakeholder needs Those nine cents on every dollar sure do add up! Accounting for Flawed Estimates Imagine a project to install a new operating system on 1000 workstations We'll examine exactly how costs are planned for or girls /video/play?vid=1942914 taken into consideration by the performing organization or about 997,000 how the size of the project affects the cost estimating process 22 Chapter 7: Introducing Project Cost Management Added Time Added Cost Cost Added Scope Original Project Time Scope EAC is part of the Earned Value Management approach ³ Scope statement The scope statement serves as a key input to resource planning; the scope statement defines the project work
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