A Guide to Project Management

Project management management body of body of

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Unformatted text preview: ntial for reducing the cost of the production phase. The cost-estimating process must consider whether the cost of the additional design work will be offset by the expected savings. Inputs .1 .2 .3 .4 .5 .6 .7 .8 Work breakdown structure Resource requirements Resource rates Activity duration estimates Estimating publications Historical information Chart of accounts Risks Tools & Techniques .1 .2 .3 .4 .5 Analogous estimating Parametric modeling Bottom-up estimating Computerized tools Other cost estimating methods Outputs .1 Cost estimates .2 Supporting detail .3 Cost management plan A Guide to the A Guide to the 7.2.1 Inputs to Cost Estimating .1 Work breakdown structure. The WBS is described in Section It is used to organize the cost estimates and to ensure that all identified work has been estimated. .2 Resource requirements. Resource requirements are described in Section .3 Resource rates. The individual or group preparing the estimates must know the unit rates (e.g., staff cost per hour, bulk material cost per cubic yard) for each resource to calculate project costs. If actual rates are not known, the rates themselves may have to be estimated. .4 Activity duration estimates. Activity duration estimates (described in Section will affect cost estimates on any project where the project budget includes an allowance for the cost of financing (i.e., interest charges). .5 Estimating publications. Commercially available data on cost estimating. .6 Historical information. Information on the cost of many categories of resources is often available from one or more of the following sources: Project files--one or more of the organizations involved in the project may maintain records of previous project results that are detailed enough to aid in developing cost estimates. In some application areas, individual team members may maintain such records. Commercial cost-estimating databases--historical information is often available commercially. Project team knowledge--the individual members of the project team may remember previous actuals or estimates. While such recollections may be useful, they are generally far less reliable than documented results. .7 Chart of accounts. A chart of accounts describes the coding structure used by the performing organization to report financial information in its general ledger. Project cost estimates must be assigned to the correct accounting category. .8 Risks. The project team considers information on risks (see Section when producing cost estimates, since risks (either threats or opportunities) can have a significant impact on cost. The project team considers the extent to which the effect of risk is included in the cost estimates for each activity. Project Project Management Management Body of Body of KnowledgeE L KnowledgeE PL MP AM SA S A Guide to the Project Management Body of Knowledge (PMBOK Guide) 2000 Edition 2000 Project Management Institute, Four Campus Boulevard, Newtown S...
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This document was uploaded on 09/27/2013.

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