Performance measure

Yellow

Red

CPI

0.9-0.8 or 1.1-1.2

Less than 0.8 or greater than 1.2

href=”https://solutionessays.com/#Estimating_costs” title=”Indicate the estimating techniques that will be used to arrive at cost estimates. Examples include analogous estimates, three-point estimates, parametric estimates, etc.” Estimating costs

There are mainly three types of cost estimation techniques used in the project as follows:

Parametric estimation: It uses relationships of the variables for calculating the cost of the project. It is determined by means of identifying unit cost plus number of units needed for the project activity (Horváthová, 2010).

Analogous estimation: This cost estimation technique uses to estimate the budget based on the past data of the project, which is similar to this current plan.

Three point estimation: This cost estimation technique uses optimistic (O), pessimistic (P) and most likely (ML) cost for determine ideal cost for each of the project activity (Snyder, 2013). This technique allows to occur recognized risks to be counted as well as shape in the economical of the project. The weighting equation used to calculate total expected cost for each activity of the project is calculated as= [(O+4*ML+P) /6]

href=”https://solutionessays.com/#Developing_the_budget” title=”Document how the project baseline will be developed. Include information on how contingency and management reserve will be handled.” Developing the budget

Budget planning is required to save the money, assessed long term project goals and provided accurate besides precise project cost. It helps to highlight any deviations between budget standards in addition actual project achievement. It also provides reason behind deviation of the budget cost from its planned value. The budget planning is required for the future as it is base of the cost control in long run. The budget for the project is developed by means of allocating the financial, human resources as well as physical resources to the project activities (Wysocki, 2014). The businesses are developing budget for monitoring progress of the project goals, help in spending of the project and predicting the cash flow as well as return of investment for each project.

href=”https://solutionessays.com/#Updating_monitoring_and_controlling” title=”Document the process for updating the budget, including update frequency, permissions, and version control. Indicate the guidelines for maintaining baseline integrity and for re-baselining if necessary.” Updating, monitoring and controlling

The project cost management is required to set a limit to the costs of the project plan, so that it does not exceed the limit and control over the project cost. If there is no control over the project cost, then the expenditure of project will increase and go out of control. The cost control technique should be used at commencement of the project planning and remained through entire lifecycle of the project. In order to track the project cost, at the initial stage it is required to create and enter cost values for the budget resources assigned to the project tasks. The task costs are tracked and measured against budget resources (Project Management Institute, 2013). It is calculated by difference between scheduled as well as baseline costs, providing the cost variance. There is also required to control cost by tracking the income as well as expenditure of the project cost.