Cost Estimating 11 Here's an example of analogous estimating: the Carlton Park Project was to grade and pave a sidewalk around a pond at amateur girls after Amateur Model the community park ³ Cost management plan The cost management plan dictates how cost variances will be managed You have a piece of equipment that was purchased recently for $10,000 or often amateur is expected to last five years in production The required work, therefore, can help identify the required resources to complete the project These three values are key information about the worth of the project to date (EV), the cost of the project work to date (AC), or uk way. the planned value of the work to date (PV) The learning curve allows the cost to decrease as a result of decreased installation time as workers complete more of the installation procedure A cost estimate is the cost of the resources required to complete the project work There is one last cost, called opportunity costs The time to recoup the monies from the project is 72 months As projects have risks, the cost of the risks should be identified along with the cost of the risk responses $17,000 C You are the project manager for a construction project to build 17 cabins The activity duration estimates should be readily available from the time management processes While this method is more expensive, because of the time invested to create the estimate, it is also one of the most accurate Value analysis is an approach to find more affordable, less costly, methods of accomplishing the same work WBS C You are about to create the cost estimates for the project ³ Performance reports These reports focus at amateur girls after project cost performance, project scope, or - contains planned performance versus actual performance It can also be useful at amateur girls after Amateur Model predicting future variances or the 2257) the final costs at completion Your BAC is $600,000 ³ Scope statement The scope statement serves as a key input to resource planning; the scope statement defines the project work ³ Fixed costs These costs remain constant throughout the project (the cost of a piece of rented equipment for the project, the cost of a consultant brought onto the project, or ... texas so on)83 EAC+$301,024 EAC= EAC= EAC= FIGURE 7-6 There are many approaches to calculating the EAC Know this formula for calculating the EAC Using Historical Information Historical information is proven information or go now can come from several places: ³ Project files Past projects within the performing organization can be used as a reference to predict costs or 204k radio time D is not correct, as this is not an example of an indirect cost Creating a Cost Change Control System Sometimes a project manager must add, or remove, costs from a project Less accurate D Ill 7-5 There are two types of parametric estimating: ³ Regression analysis This is a statistical approach to predict what future values may be, based at amateur girls after historical values 21  Choice A allows for 50 percent completion when the work begins or feel - 50 percent when the work is completed To use parametric modeling, the factors the model is based at amateur girls after must be accurate What is your variance? A Management or - - customers will want to know how much a project is going to cost so they can determine if the project is worth doing, if the project deliverable will be worth the cost, or developed his if the project will be profitable 25 A fringe benefit of completing a bottomup estimate is the project team may buy-into the project work as they see they cost and value of each cost within the project It is generally less accurate than other budgeting techniques ³ Double-declining balance is considered accelerated depreciation
C Learning curve 7
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