Ch7-Cost.ppt

PMP Preparation Training
Cost Management
Chapter7
Project Cost Management
Resource Planning
Cost Estimating
Cost Budgeting
Cost Control
Processes required to ensure the project
pleted within the approved budget
Cost Management

Resource
Planning
Planning

Cost
Budgeting

Cost
Control
Controlling

Cost
Estimating
Resource Planning
Determining physical resources needed (., material, equipment, and people) and what quantities of each should be used and when they would be needed to perform project activities
Resource Planning
Inputs
Scope statement
WBS
Resource pool anizational policies
Historical information
Activity durations estimates
Tools & Techniques
Expert judgment
Alternatives identification
PM software
Outputs
Resource requirements
Inputs
Work breakdown structure (WBS) – Identifies the project elements that require resources
Historical information – Used to identify the types of resources that were required for similar work on previous projects
Scope statement – Contains project justification and the project objectives, which need to be considered
Resource pool description – Description of resources available, if necessary, to work on a anizational policies – Of the anization, regarding staffing and the rental and purchase of supplies and equipment
Activity duration estimates
Resource Planning
Tools & Techniques
Expert judgment – Expertise, provided by any group or individual, used to assess the inputs to this process
Other units anization
Consultants
Professional and technical associations
Industry groups
Alternatives identification
PM software – Used anize resource pools, define resource availabilities and rates, and define resource calendars
Resource Planning
Outputs
Resource requirements – Description of the types (., skill levels) and numbers of resources required by each element of the WBS
Resource Planning
Cost Estimating
Difference between cost estimating and pricing:
Cost estimating: Assessing how m