PMP ITTO List - Part 4

Gurus,

Happy to meet you again in this space. We will see the ITTO of Cost management knowledge area in this part.

Cost management: This knowledge area is involved in estimating, budgeting, and controlling costs and to keep the project within the approved cost.

Cost management processes: This knowledge area has three processes under it. They are:

1) Estimate Costs,

2) Determine Budget, and

3) Control Costs

1) Estimate Costs: It is the process of calculating an approximate cost requires to complete the project.

Inputs:

Scope baseline, Project schedule, HR Plan, Risk Register, Enterprise Environmental Factors (EF), Organizational Process Assets (OP)

Tools and Techniques:

Experts Judgment, Analogous Estimating, Parametric Estimating, Bottom-up estimating, Three-point estimating, Reserve Analysis, Cost of Quality, Project Management Estimating Software, Vendor Bid Analysis

Outputs:

Activity Cost Estimates, Basis of Estimates, Project Document Updates.

2) Determine Budget: It is the process of making a cost baseline for the project work.

Inputs:

Activity Cost Estimates, Basis of Estimates, Scope Baseline, Project Schedule, Resource Calendars, Contracts, Organizational Process Assets (OP)

Tools and Techniques:

Cost Aggregation, Reserve Analysis, Experts Judgment, Historical Relationships, Funding Limit Reconciliation

Outputs:

Cost Performance Baseline, Project Funding Requirements, Project Documents Updates

3) Control Costs: It is the status of monitoring the cost spent for the project work.

Inputs:

Project management plan, Project Funding Requirements, Work Performance Information, Organizational Process Assets (OP)

Tools and Techniques:

Earned Value Management (EVM), Forecasting, To Complete Performance Index (TCPI), Performance Reviews, Variance Analysis, Project Management Software

Outputs:

Work performance measurements, Budget forecasts, Organizational process assets (OP) updates, change requests, Project Management plan updates, Project document updates

See you soon with the next series of PMP ITTO list. Happy Reading!!!