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7.1 Estimate Project Costs Process | Project Cost Management Knowledge Area

7.1 Estimate Project Costs Process | Project Cost Management. Full article ►► http://whatispmp.com/estimate-project... ================================= Chapter 7: Project Cost Management Knowledge Area: 7.1 Estimate Costs Process: http://whatispmp.com/estimate-project... 7.2 Determine Budget Process: http://whatispmp.com/determine-projec... 7.3 Control Costs Process: http://whatispmp.com/control-project-... ================================= 7.1 Estimate Project Costs Process | Project Cost Management Knowledge Area. Expected costs for all scheduled activities are established through the Estimate Project Costs process. The cost estimate is a quantitative assessment of the likely costs for the resources required to complete the activity. This process occurs at least once, though it's most likely that estimates will undergo several revisions as the planning processes are underway with fewer changes occurring once executing processes begin. In most organizations, cost estimating is performed by the project manager though for some project types professional estimators may also be involved. There are several key inputs to this process. The schedule and its associated data containing activity resource requirements and durations form the basis for estimating costs. The scope statement, WBS, and WBS dictionary are essential to this process because they contain the deliverables, constraints, and assumptions that will have a direct impact on costs. The human resource plan is also needed because it contains the pay rates and recognition and rewards methods for the project team. The risk register is also needed because it contains the risk management activities that will be taken to minimize negative risks, and there is a cost involved in those activities. A solid project budget begins with an accurate and complete inventory of activities, so the cost estimating process is a good place to double-check that all items are accounted for in the scope, WBS, and resource breakdown structure. Missing items could trigger scope or schedule change requests if baselines have already been established. The main outputs of cost estimating are the activity cost estimates and the basis of estimates. The activity cost estimates contain the expected cost of every project activity, and it is the main source of data for the project funding requirements and the project budget. The basis of estimates is the supporting detail that provides supplementary information about the activity estimates, such as any assumptions made, constraints, how the estimate was derived, the confidence level in the estimate, and any risk factors that were considered. 7.1.1 Estimate Costs: Inputs • Scope baseline The scope baseline is the approved project scope statement, WBS, and WBS dictionary. These collections provide the deliverables, statements of work, constraints, and assumptions that are necessary for accurate cost estimating. • Project schedule The project schedule specifies the planned start and finish date for each scheduled activity, and the accompanying schedule data provides the specific activities and resource requirements. • Human resource plan The human resource plan contains the details on how the project will be staffed, and how the project team will be trained, evaluated, compensated, rewarded, and released from the project. It also contains labor rates, needed for estimating costs, and recognition and rewards programs for the team that must be budgeted for. • Risk register The risk register is a comprehensive list of all threats and opportunities the project faces. It also contains supplementary data about each risk, including its impact, probability, risk response, budget, risk owner, and contingency and fallback plans. The level of risk inherent in any activity impacts its cost. Read Full article ►► http://whatispmp.com/estimate-project... ============================ Share video:    • 7.1 Estimate Project Costs Process | ...   ============================ Subscribe to our channel: https://goo.gl/pJeXcj website: http://whatispmp.com Facebook: https://fb.me/whatispmp Google+: https://goo.gl/FQGzT5 ============================ PMP Tutorial ►► http://whatispmp.com/PM-Tutorial --------------------------------------------------------- This tutorial covers the following subject matter: Knowledge areas: • Project Integration Management. • Project Scope Management. • Project Time Management. • Project Cost Management. • Project Quality Management. • Project Human Resource Management. • Project Communications Management. • Project Risk Management. • Project Procurement Management. Process groups: • Initiating Processes. • Planning Processes. • Executing Processes. • Monitoring & Controlling Processes. • Closing Processes. ============================ Share video:    • 7.1 Estimate Project Costs Process | ...   ============================ What is PMP, PMP Training, PMP Certification, PMP Exam Preparation,