Summary

The Estimate Costs process determines how much the project resources will cost, and these costs are usually stated in monetary amounts. Some of the techniques used specifically for estimating costs are analogous estimating, parametric estimating, bottom-up estimating, three-point estimates, and reserve analysis. You can also use bottom-up estimating for total project cost estimates. This involves estimating the cost of each activity and then rolling these up to come up with a total work package cost. The output of this process is the activity cost estimates and the basis of estimates that details all the support information related to the estimates.

The tools and techniques of the Determine Budget process include cost aggregation, reserve analysis, expert judgment, historical relationships, and funding limit reconciliation. These tools together help you produce the final, authorized project budget known as the cost performance baseline, which is an output of this process. You will use the cost performance baseline throughout the remainder of the project to measure project expenditures, variances, and project performance. The cost performance baseline is graphically displayed as an S curve.

The cost performance baseline is also known as a performance measurement baseline (PMB) when you're calculating earned value management formulas. PMBs are management controls that should change only infrequently. Examples of the performance measurement baselines you've looked at so far are the scope, schedule, and cost baselines. The completed project plan itself also becomes a baseline. If changes in scope or schedule do occur after Planning is complete, you should go through a formalized process (which I'll cover in Chapter 10, "Measuring and Controlling Project Performance") to implement the changes.

The purpose of the communications management plan is to determine and document the communication needs of the stakeholders by defining the types of information needed, the format for communicating the information, how often it's distributed, and who prepares it. This plan is a subsidiary plan of the project management plan.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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