Project Cost Management Exam

Project Cost Management Exam

The list of content for the Project Cost Management exam according to the PMI approach:

1. Plan Cost Management

   – Establishing policies, procedures, and documentation for planning, managing, expanding, and controlling project costs.

   – Developing a Cost Management Plan.

2. Estimate Costs

   – Developing an approximation of the monetary resources needed to complete project activities.

   – Techniques: expert judgment, analogous estimating, parametric estimating, bottom-up estimating, three-point estimating, and reserve analysis.

3. Determine Budget

   – Aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

   – Including contingency reserves, management reserves, and baseline adjustments.

4. Control Costs

   – Monitoring project cost performance to identify variances from the plan.

   – Implementing corrective actions to align with the cost baseline.

   – Tools: Earned Value Management (EVM), cost variance analysis, and forecasting.

5. Earned Value Management (EVM)

   – Integrating scope, schedule, and cost data to assess project performance.

   – Key metrics: Planned Value (PV), Earned Value (EV), Actual Cost (AC), Cost Performance Index (CPI), and Schedule Performance Index (SPI).

6. Cost Estimating Techniques

   – Analogous Estimating: Using historical data from similar projects.

   – Parametric Estimating: Using statistical relationships between historical data and other variables.

   – Bottom-Up Estimating: Summing costs of individual activities.

   – Three-Point Estimating: Considering optimistic, pessimistic, and most likely estimates.

7. Budget Determination

   – Creating a cost baseline by summing estimates, reserves, and expected costs.

   – Aligning the project budget with organizational financial constraints and funding.

8. Cost Control Techniques

   – Monitoring cost performance and variance analysis.

   – Forecasting future costs and performing what-if scenarios.

   – Applying corrective measures and change control processes.

9. Funding Limit Reconciliation

   – Aligning project expenditures with funding limits.

   – Scheduling work to ensure project costs remain within budget constraints.

10. Cost Management in Agile Projects

    – Managing costs in Agile environments using iterative budgeting and cost tracking.

    – Ensuring continuous monitoring and adjustment to accommodate changing requirements.