Área de Conocimiento 04, Gestión del Costo

1. Chapter
5:
Project
Cost
Management
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&
Consultancy
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2. Overview
Ini%a%ng
process
group
Planning
process
group
Execu%ng
process
group
Monitoring
&
controlling
process
group
Closing
process
group
Project
cost
management
• Plan
Cost
Management
• EsHmate
Costs
• Determine
Budget
• Control
Costs
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3. Cost
Concepts
Life
cycle
cosHng
• Looking
at
the
cost
of
whole
life
of
the
product
(include
maintenance)
Value
analysis
(value
engineering)
• Looking
at
less
costly
way
to
do
the
same
work
within
the
same
scope
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4. Cost
Concepts
A
Cost
can
be
either
variable
or
fixed:
• Variable
cost:
cost
that
change
with
the
amount
of
producHon
or
the
amount
of
work.
Ex.,
cost
of
material,
supplies,
wages…
• Fixed
cost:
cost
that
do
not
change
as
producHon
changes.
Ex.,
set-­‐up,
rental…
A
Cost
can
be
either
direct
or
indirect:
• Direct
cost:
cost
that
are
directly
aVributable
to
the
work
on
the
project,
Ex.,
team
travel,
team
wages,
recogniHon,
and
costs
of
material
used
on
the
project…
• Indirect
cost:
overhead
items
or
costs
incurred
for
the
benefit
of
more
than
one
project,
Ex.,
taxes,
fringe
benefits
and
janitorial
services
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5. Plan
cost
management
• The
process
that
establishes
the
policies,
procedures,
and
documentaHon
for
planning,
managing,
expending,
and
controlling
project
costs.
The
key
benefit
of
this
process
is
that
it
provides
guidance
and
direcHon
on
how
the
project
costs
will
be
managed
throughout
the
project.
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Management
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A
Guide
to
the
Project
Management
Body
of
Knowledge,
FiBh
Edi9on
(PMBOK®
Guide)
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6. Inputs
1. Project
Management
Plan
• contains
informaHon
used
to
develop
the
cost
management
plan:
Scope
baseline,
Schedule
baseline,
Other
informaHon.
2. Project
Charter
• provides
the
summary
budget
from
which
the
detailed
project
costs
are
developed.
3. Enterprise
Environmental
Factors
• organizaHonal
culture
and
structure
can
all
influence
cost
management;
market
condiHons;
currency
exchange
rates;
published
commercial
informaHon;
PMIS.
4. Organiza%onal
Process
Assets
• financial
controls
procedures;
historical
informaHon
and
lessons
learned
knowledge
bases;
financial
databases;
and
exisHng
formal
and
informal
cost
esHmaHng
and
budgeHng-­‐related
policies,
procedures,
and
guidelines.
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7. Tools
and
techniques
1. Expert
Judgment
• guided
by
historical
informaHon,
provides
valuable
insight
about
the
environment
and
informaHon
from
prior
similar
projects.
2. Analy%cal
Techniques
• involve
choosing
strategic
opHons
to
fund
the
project
such
as:
self-­‐funding,
funding
with
equity,
or
funding
with
debt.
The
cost
management
plan
may
also
detail
ways
to
finance
project
resources
such
as
making,
purchasing,
renHng,
or
leasing.
• techniques
may
include:
payback
period,
return
on
investment,
internal
rate
of
return,
discounted
cash
flow,
and
net
present
value.
3. Mee%ngs
• aVendees
at
these
meeHngs
may
include
the
project
manager,
the
project
sponsor,
selected
project
team
members,
selected
stakeholders,
anyone
with
responsibility
for
project
costs,
and
others
as
needed.
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8. Outputs
1. Cost
Management
Plan
• describes
how
the
project
costs
will
be
planned,
structured,
and
controlled.
the
cost
management
plan
can
establish
the
following:
ü units
of
measure.
ü Level
of
precision:
the
degree
to
which
acHvity
cost
esHmates
will
be
rounded
up
or
down
(e.g.,
US$100.49
to
US$100,
or
US$995.59
to
US
$1,000)
ü Level
of
accuracy:
the
acceptable
range
(e.g.,
±10%)
ü OrganizaHonal
procedures
links:
the
WBS
provides
the
framework
for
the
cost
management
plan,
allowing
for
consistency
with
the
esHmates,
budgets,
and
control
of
costs.
ü control
thresholds.
ü Rules
of
performance
measurement:
EVM
rules
of
performance
ü ReporHng
formats
ü Process
descripHons
ü AddiHonal
details
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9. EsHmate
costs
• The
process
of
developing
an
approximaHon
of
the
monetary
resources
needed
to
complete
project
acHviHes.
The
key
benefit
of
this
process
is
that
it
determines
the
amount
of
cost
required
to
complete
project
work.
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A
Guide
to
the
Project
Management
Body
of
Knowledge,
FiBh
Edi9on
(PMBOK®
Guide)
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Project
Management
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10. EsHmaHng
techniques
• The
accuracy
of
a
project
esHmate
will
increase
as
the
project
progresses
through
the
project
life
cycle.
For
example,
a
project
in
the
iniHaHon
phase
may
have
a
rough
order
of
magnitude
(ROM)
esHmate
in
the
range
of
−25%
to
+75%.
Later
in
the
project,
as
more
informaHon
is
known,
definiHve
esHmates
could
narrow
the
range
of
accuracy
to
-­‐5%
to
+10%.
• EsHmaHng
techniques:
analogous
esHmaHng
(top
down
esHmaHng),
parametric
esHmaHng,
boVom
up
esHmaHng,
three
point
esHmaHng.
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11. Inputs(1/2)
1. Cost
Management
Plan
• defines
how
project
costs
will
be
managed
and
controlled.
2. Human
Resource
Management
Plan
• provides
project
staffing
aVributes,
personnel
rates,
and
related
rewards/recogniHon,
which
are
necessary
components
for
developing
the
project
cost
esHmates.
3. Scope
Baseline
• addiHonal
informaHon
that
may
be
found
in
the
scope
baseline
with
contractual
and
legal
implicaHons,
such
as
health,
safety,
security,
performance,
environmental,
insurance,
intellectual
property
rights,
licenses,
and
permits.
All
of
this
informaHon
should
be
considered
when
developing
the
cost
esHmates.
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12. Inputs(2/2)
4. Project
Schedule
• the
type
and
quanHty
of
resources
and
the
amount
of
Hme
which
those
resources
are
applied
to
complete
the
work
of
the
project
are
major
factors
in
determining
the
project
cost.
Schedule
acHvity
resources
and
their
respecHve
duraHons
are
used
as
key
inputs
to
this
process.
5. Risk
Register
• as
a
general
rule,
when
the
project
experiences
a
negaHve
risk
event,
the
near-­‐term
cost
of
the
project
will
usually
increase,
and
there
will
someHmes
be
a
delay
in
the
project
schedule.
In
a
similar
way,
the
project
team
should
be
sensiHve
to
potenHal
opportuniHes
that
can
benefit
the
business
either
by
directly
reducing
acHvity
costs
or
by
acceleraHng
the
schedule.
6. Enterprise
Environmental
Factors
• market
condiHons,
published
commercial
informaHon.
7. Organiza%onal
Process
Assets
• cost
esHmaHng
policies,
cost
esHmaHng
templates,
historical
informaHon,
and
lessons
learned.
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13. Tools
and
techniques(1/3)
1. Expert
Judgment
• guided
by
historical
informaHon,
provides
valuable
insight
about
the
environment
and
informaHon
from
prior
similar
projects.
2. Analogous
Es%ma%ng
• uses
the
values
such
as
scope,
cost,
budget,
and
duraHon
or
measures
of
scale
such
as
size,
weight,
and
complexity
from
a
previous,
similar
project
as
the
basis
for
esHmaHng
the
same
parameter
or
measurement
for
a
current
project.
3. Parametric
Es%ma%ng
• uses
a
staHsHcal
relaHonship
between
relevant
historical
data
and
other
variables
(e.g.,
square
footage
in
construcHon)
to
calculate
a
cost
esHmate
for
project
work.
This
technique
can
produce
higher
levels
of
accuracy
depending
upon
the
sophisHcaHon
and
underlying
data
built
into
the
model.
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14. Tools
and
techniques(2/3)
4. BoVom-­‐Up
Es%ma%ng
• is
a
method
of
esHmaHng
a
component
of
work.
The
cost
of
individual
work
packages
or
acHviHes
is
esHmated
to
the
greatest
level
of
specified
detail.
The
detailed
cost
is
then
summarized
or
“rolled
up”
to
higher
levels
for
subsequent
reporHng
and
tracking
purposes.
5. Three-­‐Point
Es%ma%ng
• Most
likely
(cM).
The
cost
of
the
acHvity,
based
on
realisHc
effort
assessment
for
the
required
work
and
any
predicted
expenses.
• OpHmisHc
(cO).
The
acHvity
cost
based
on
analysis
of
the
best-­‐case
scenario
for
the
acHvity.
• PessimisHc
(cP).
The
acHvity
cost
based
on
analysis
of
the
worst-­‐case
scenario
for
the
acHvity.
• Two
commonly
used
formulas
are
triangular
and
beta
distribuHons:
ü Triangular
DistribuHon.
cE
=
(cO
+
cM
+
cP)
/
3
ü Beta
DistribuHon
(from
a
tradiHonal
PERT
analysis).
cE
=
(cO
+
4cM
+
cP)
/
6
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15. Tools
and
techniques(3/3)
6. Reserve
Analysis
• Cost
esHmates
may
include
conHngency
reserves
(someHmes
called
conHngency
allowances)
to
account
for
cost
uncertainty.
7. Cost
of
Quality
(COQ)
(details
in
next
slide)
8. Project
Management
So^ware
9. Vendor
Bid
Analysis
• include
analysis
of
what
the
project
should
cost,
based
on
the
responsive
bids
from
qualified
vendors.
When
projects
are
awarded
to
a
vendor
under
compeHHve
processes,
addiHonal
cost
esHmaHng
work
may
be
required
of
the
project
team
to
examine
the
price
of
individual
deliverables
and
to
derive
a
cost
that
supports
the
final
total
project
cost.
10. Group
Decision-­‐Making
Techniques
• team-­‐based
approaches,
such
as
brainstorming,
the
Delphi
or
nominal
group
techniques,
are
useful
for
engaging
team
members
to
improve
esHmate
accuracy
and
commitment
to
the
emerging
esHmates.
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16. Cost
of
quality
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17. Outputs
1. Ac%vity
Cost
Es%mates
• Direct
Cost:
costs
that
are
directly
aVribute
to
work
on
the
project.
eg.
training
cost,
travel
cost,
wages,
cost
of
material
used
in
the
project,
etc
• Indirect
Cost:
overhead
items
or
costs
incurred
for
the
benefit
of
more
than
one
project.
eg.
taxes,
fringe
benefits,
etc
• Variable
Cost:
change
with
the
amount
of
producHon/work.
e.g.
material,
supplies,
wages
• Fixed
Cost:
do
not
change
as
producHon
change.
e.g.
set-­‐up,
rental
2. Basis
of
Es%mates
• DocumentaHon
of
the
basis
of
the
esHmate
(i.e.,
how
it
was
developed),
• DocumentaHon
of
all
assumpHons
made,
• DocumentaHon
of
any
known
constraints,
• IndicaHon
of
the
range
of
possible
esHmates
(e.g.,
€10,000
(±10%)
to
indicate
that
the
item
is
expected
to
cost
between
a
range
of
values),
and
• IndicaHon
of
the
confidence
level
of
the
final
esHmate.
3. Project
Documents
Updates
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18. Determine
budget
• The
process
of
aggregaHng
the
esHmated
costs
of
individual
acHviHes
or
work
packages
to
establish
an
authorized
cost
baseline.
The
key
benefit
of
this
process
is
that
it
determines
the
cost
baseline
against
which
project
performance
can
be
monitored
and
controlled.
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A
Guide
to
the
Project
Management
Body
of
Knowledge,
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(PMBOK®
Guide)
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Management
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Figure
7-­‐6
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19. Inputs(1/2)
1. Cost
Management
Plan
• describes
how
the
project
costs
will
be
managed
and
controlled.
2. Scope
Baseline
• includes
project
scope
statement,
WBS,
WBS
dicHonary.
3. Ac%vity
Cost
Es%mates
• cost
esHmates
for
each
acHvity
within
a
work
package
are
aggregated
to
obtain
a
cost
esHmate
for
each
work
package.
4. Basis
of
Es%mates
• supporHng
detail
for
cost
esHmates
contained
in
the
basis
for
esHmates
should
specify
any
basic
assumpHons
dealing
with
the
inclusion
or
exclusion
of
indirect
or
other
costs
in
the
project
budget.
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20. Inputs(2/2)
5. Project
Schedule
• This
informaHon
can
be
used
to
aggregate
costs
to
the
calendar
periods
in
which
the
costs
are
planned
to
be
incurred.
6. Resource
Calendars
7. Risk
Register
• The
risk
register
should
be
reviewed
to
consider
how
to
aggregate
the
risk
response
costs.
8. Agreements
• Applicable
agreement
informaHon
and
costs
relaHng
to
products,
services,
or
results
that
have
been
or
will
be
purchased
are
included
when
determining
the
budget.
9. Organiza%onal
Process
Assets
• ExisHng
formal
and
informal
cost
budgeHng-­‐related
policies,
procedures,
and
guidelines;
cost
budgeHng
tools;
and
reporHng
methods.
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21. Tools
and
techniques
1. Cost
Aggrega%on
• Cost
esHmates
are
aggregated
by
work
packages
in
accordance
with
the
WBS.
The
work
package
cost
esHmates
are
then
aggregated
for
the
higher
component
levels
of
the
WBS
(such
as
control
accounts)
and
ulHmately
for
the
enHre
project.
2. Reserve
Analysis
• Budget
reserve
analysis
can
establish
both
the
conHngency
reserves
and
the
management
reserves
for
the
project.
3. Expert
Judgment
• guided
by
experience
in
an
applicaHon
area,
knowledge
area,
discipline,
industry,
or
similar
project,
aids
in
determining
the
budget.
4. Historical
Rela%onships
• Any
historical
relaHonships
that
result
in
parametric
esHmates
or
analogous
esHmates
involve
the
use
of
project
characterisHcs
(parameters)
to
develop
mathemaHcal
models
to
predict
total
project
costs.
5. Funding
Limit
Reconcilia%on
• The
expenditure
of
funds
should
be
reconciled
with
any
funding
limits
on
the
commitment
of
funds
for
the
project.
A
variance
between
the
funding
limits
and
the
planned
expenditures
will
someHmes
necessitate
the
rescheduling
of
work
to
level
out
the
rate
of
expenditures.
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22. Outputs
1. Cost
Baseline
• is
the
approved
version
of
the
Hme-­‐phased
project
budget,
excluding
any
management
reserves
(details
at
next
slide)
2. Project
Funding
Requirements
• total
funding
requirements
and
periodic
funding
requirements
(e.g.,
quarterly,
annually)
are
derived
from
the
cost
baseline.
The
cost
baseline
will
include
projected
expenditures
plus
anHcipated
liabiliHes.
• the
total
funds
required
are
those
included
in
the
cost
baseline,
plus
management
reserves,
if
any.
3. Project
Documents
Updates
• such
as
risk
register,
acHvity
cost
esHmates,
and
project
schedule.
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23. Project
budget
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A
Guide
to
the
Project
Management
Body
of
Knowledge,
FiBh
Edi9on
(PMBOK®
Guide)
©2013
Project
Management
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Rights
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7-­‐8
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24. Project
budget
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A
Guide
to
the
Project
Management
Body
of
Knowledge,
FiBh
Edi9on
(PMBOK®
Guide)
©2013
Project
Management
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Rights
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Figure
7-­‐9
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25. Control
cost
• The
process
of
monitoring
the
status
of
the
project
to
update
the
project
costs
and
managing
changes
to
the
cost
baseline.
The
key
benefit
of
this
process
is
that
it
provides
the
means
to
recognize
variance
from
the
plan
in
order
to
take
correcHve
acHon
and
minimize
risk.
Copyright@STEVBROS
Project
Management
Fundamentals
25
A
Guide
to
the
Project
Management
Body
of
Knowledge,
FiBh
Edi9on
(PMBOK®
Guide)
©2013
Project
Management
Ins9tute,
Inc.
All
Rights
Reserved.
Figure
7-­‐10
Page
215.

26. Inputs
1. Project
Management
Plan
• contains
cost
baseline
and
cost
management
plan.
2. Project
Funding
Requirements
• requirements
include
projected
expenditures
plus
anHcipated
liabiliHes.
3. Work
Performance
Data
• data
includes
informaHon
about
project
progress,
such
as
which
acHviHes
have
started,
their
progress,
and
which
deliverables
have
finished.
InformaHon
also
includes
costs
that
have
been
authorized
and
incurred.
4. OrganizaHonal
Process
Assets
• include
exisHng
formal
and
informal
cost
control-­‐related
policies,
procedures,
and
guidelines;
cost
control
tools;
and
monitoring
and
reporHng
methods
to
be
used.
Copyright@STEVBROS
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26

27. Tools
and
techniques
1. Earned
Value
Management
(next
slides)
2. Forecas%ng
(next
slides)
3. To-­‐Complete
Performance
Index
(TCPI)
(next
slides)
4. Performance
Reviews
(next
slides)
5. Project
Management
So^ware
6. Reserve
Analysis
• During
cost
control,
reserve
analysis
is
used
to
monitor
the
status
of
conHngency
and
management
reserves
for
the
project
to
determine
if
these
reserves
are
sHll
needed
or
if
addiHonal
reserves
need
to
be
requested.
Copyright@STEVBROS
Project
Management
Fundamentals
27

28. EVM
• Earned
Value
Management
(EVM):
is
the
most
common
tool
which
help
project
managers
measure
project
performance
and
determine
where
the
project
stands
in
relaHon
to
the
budget
and
the
schedule
at
a
point
in
Hme.
• Work
performance
informaHon:
BAC,
PV,
EV,
AC.
• Work
performance
measurement:
CPI,
CV,
SPI,
SV.
• ForecasHng:
ETC,
EAC.
• To-­‐Complete
Performance
Index:
TCPI.
Copyright@STEVBROS
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28

29. EVM
• Work
performance
informaHon:
o BAC-­‐
Budget
At
CompleHon
(project
budget).
o PV
-­‐
Planned
Value
(value
of
work
schedule):
PV
=
BAC
*
planned
%
complete.
o EV
-­‐
Earned
Value
(value
of
work
performed):
EV
=BAC
*
actual
%
complete.
o AC—Actual
Cost
(spent
cost).
Copyright@STEVBROS
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29

30. EVM
• Work
performance
measurement:
o SPI—Schedule
Performance
Index
=
EV/PV.
If
SPI
>
1,
you’re
ahead
of
schedule.
If
SPI
<
1,
you’re
behind
schedule.
o SV—Schedule
Variance
=
EV-­‐PV.
If
SV
>
0,
it
tells
you
how
many
dollars
you’re
ahead.
If
SV
<
0,
it
tells
you
how
many
dollars
you’re
behind.
o CPI—Cost
Performance
Index
=
EV/AC.
If
CPI
>
1,
you’re
under
budget.
If
CPI
<
1,
you’re
over
budget.
o CV—Cost
Variance
=
EV-­‐AC.
If
CV
>
0,
it
tells
you
how
many
dollars
you’re
above.
If
CV
<
0,
it
tells
you
how
many
dollars
you’re
below.
Copyright@STEVBROS
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31. EVM
Copyright@STEVBROS
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A
Guide
to
the
Project
Management
Body
of
Knowledge,
FiBh
Edi9on
(PMBOK®
Guide)
©2013
Project
Management
Ins9tute,
Inc.
All
Rights
Reserved.
Figure
7-­‐12
Page
219.

32. EVM
• ForecasHng:
o EsHmate
to
Complete
(ETC),
which
tells
you
how
much
more
money
you’ll
probably
spend
on
your
project.
o EsHmate
at
CompleHon
(EAC)
is
used
to
predict
what
your
project
will
actually
cost
when
it’s
complete.
o EAC
=
AC
+
boVom-­‐up
ETC
Copyright@STEVBROS
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33. EVM
• ForecasHng:
o EAC
forecast
for
ETC
work
performed
at
the
budgeted
rate.
This
EAC
method
accepts
the
actual
project
performance
to
date
(whether
favorable
or
unfavorable)
as
represented
by
the
actual
costs,
and
predicts
that
all
future
ETC
work
will
be
accomplished
at
the
budgeted
rate.
EquaHon:
EAC
=
AC
+
(BAC
-­‐
EV)
o EAC
forecast
for
ETC
work
performed
at
the
present
CPI.
This
method
assumes
what
the
project
has
experienced
to
date
can
be
expected
to
conHnue
in
the
future.
The
ETC
work
is
assumed
to
be
performed
at
the
same
cumulaHve
cost
performance
index
(CPI)
as
that
incurred
by
the
project
to
date.
EquaHon:
EAC
=
BAC
/
CPI
o EAC
forecast
for
ETC
work
considering
both
SPI
and
CPI
factors.
In
this
forecast,
the
ETC
work
will
be
performed
at
an
efficiency
rate
that
considers
both
the
cost
and
schedule
performance
indices.
This
method
is
most
useful
when
the
project
schedule
is
a
factor
impacHng
the
ETC
effort.
EquaHon:
EAC
=
AC
+
[(BAC
-­‐
EV)
/
(CPI
×
SPI)]
Copyright@STEVBROS
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Fundamentals
33

34. EVM
• To-­‐Complete
Performance
Index
(TCPI):
is
a
measure
of
the
cost
performance
that
is
required
to
be
achieved
with
the
remaining
resources
in
order
to
meet
a
specified
management
goal,
expressed
as
the
raHo
of
the
cost
to
finish
the
outstanding
work
to
the
remaining
budget.
Copyright@STEVBROS
Project
Management
Fundamentals
34
A
Guide
to
the
Project
Management
Body
of
Knowledge,
FiBh
Edi9on
(PMBOK®
Guide)
©2013
Project
Management
Ins9tute,
Inc.
All
Rights
Reserved.
Figure
7-­‐13
Page
222.

35. EVM
Copyright@STEVBROS
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Management
Fundamentals
35

36. Outputs
1. Work
Performance
Informa%on
• The
calculated
CV,
SV,
CPI,
SPI,
TCPI,
and
VAC
values
for
WBS
components,
in
parHcular
the
work
packages
and
control
accounts,
are
documented
and
communicated
to
stakeholders.
2. Cost
Forecasts
• EAC
value
is
documented
and
communicated
to
stakeholders.
3. Change
Requests
• analysis
of
project
performance
may
result
in
a
change
request
to
the
cost
baseline
or
other
components
of
the
project
management
plan.
4. Project
Management
Plan
Updates
5. Project
Documents
Updates
6. Organiza%onal
Process
Assets
Updates
Copyright@STEVBROS
Project
Management
Fundamentals
36

37. Summary
• Cost
esHmaHng
techniques
• The
accuracy
of
a
project
esHmate
• Project
budget
vs.
cost
baseline
• Management
reserve
vs.
conHngence
reserve
• Earned
value
management:
PV,
AC,
EV,
CPI,
SPI,
CV,
SV,
ETC,
EAC,
TCPI.
Copyright@STEVBROS
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Management
Fundamentals
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38. QuesHons
for
review
Copyright@STEVBROS
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Fundamentals
38
• You
did
the
good
job
at
this
chapter.
Please
complete
quesHons
for
review
before
moving
to
next
chapter.