Value analysis is an approach to find more affordable, less costly, methods of accomplishing the same work You are the project manager for the consulting company The cost management plan controls how cost variances will be managed Recall the formula for present value? It's PV= FV/(1+R)n; PV is the present value, FV is the future value, R is the interest rate, or dancewear, consult n is the number of time periods There is a distinct difference between cost estimating or computer sucked pricing Variances that cross a given threshold may require the project manager to create a variance report to explain the variance, why it has happened, and what corrective action has been applied to prevent the variance from recurring 12 Chapter 7: Introducing Project Cost Management Cost per unit = $78 Project A Project B ³ Learning curve This approach is simple: the cost per unit decreases the more units workers complete; this is because workers learn as they complete the required work ³ Variable costs: costs that vary depending at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls at schoolgirls 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covered in this chapter are: Time constraint B Cost Estimating 11 Here's an example of analogous estimating: the Carlton Park Project was to grade and pave a sidewalk around a pond in the community park $2,000 20 Consider the Inputs to Resource Planning Resource planning is the process of examining the project work or - mac determining what resources, people, or sexy pussy equipment are needed to complete the project If the project team is lacking a needed project skill set, a seminar or training class is appropriate to get the team member up to speed While this method is more expensive, because of the time invested to create the estimate, it is also one of the most accurate $65,000 B These references can help the project estimator confirm or bobbi babe predict the accuracy of estimates Additional Planning Planning is an iterative process Scope creep C The project manager should be aware of these requirements before planning the resources- time invested identifying resources may be lost if the process conflicts with the organizational policies You have not factored in all of the effort applied to the work B is incorrect, as the cost of each book diminishes as more books are created The identified resources will need to be obtained through staff acquisition or through procurement The project will have some requirement for resources-the skills of the labor, the ability of materials, or the function of equipment must all be accounted for  Choices B or lingerie 2008 C are incorrect, though tempting, because the do not describe the process of calculating the ongoing expenses of the product the project is creating ³ Double-declining balance is considered accelerated depreciation The WBS is the input that can help you the most with the cost estimates What is the BAC? A You calculate the time to install the tile in each hotel room as six hours Bottom-up estimating starts with zero, or ... for each component of the WBS is accounted for to reach a grand total of the project91 EAC= $631,868 EAC=AC+ETC EAC=$20,000+175,000 EAC=$195,000 EAC=AC+BAC-EV EAC=$7,000+24,000-$2,450 EAC=$29,050 AC+(BAC-EV) CPI $45,000+($250,000-37,500) 40 Chapter 7: Introducing Project Cost Management ³ Bottom-up budgeting This approach is the most reliable, though it also takes the longest to create Developing the Cost Management Plan The cost management plan details how variances from the project costs will be managed Your team wants to know why you have not assigned the same amount of time for the last 800 units as you had for the first five hundred units
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