Control Costs Tools and Techniques
Inputs Project management plan Project funding requirements Work performance data Organizational process assets
Earned value management Forecasting To complete performance index(TCPI) Performance reviews Project management software Reserve analysis
Outputs Work performance information Cost forecasts Organizational process assets updates Change requests Project management plan updates Project document updates Organizational process assets updates
Notice that the tools and techniques of cost control involve implementation of earned value calculations, delivering a forecast, calculating the TCPI (To Complete Performance Index) and variance analysis. In addition, you want to be consulting your cost management plan, as well as following strict change management processes on your project. Exam Tip: know the difference between a Cost Baseline and a Cost (Total) Budget. Cost Baseline - the cost of all activities, work packages, project estimates and contingency reserves Cost (Total) Budget- includes the cost baseline with the addition of management reserve
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Earned Value Definitions Acronym
Name
Definition
PV
Planned Value
Planned cost of work to be done at this point in time
EV
Earned Value
AC
Actual Cost
Value of work actually accomplished
BAC
Budget at Completion
EAC
Estimate at Completion
What do we think the project will actually cost
ETC
Estimate to Complete
From this point, how much more will it cost to complete the project
VAC
Variance at Completion
How much over/under budget do we expect to be at project end
TCPI
To Complete Performance Index
What cost performance goals must be met to stay within the BAC
Cost of work Total planned value for the entire project
©℗ 2009-2013 Richard Perrin – Evolutionten: Project Cost Management
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