07 - Project Cost Management-2019-06-13 13 - 21 - 19

PMP PREPARATION COURSE
6th EDITION
BY: SAYED MOHSEN, PMP, PMI-RMP, PMI-SP
www.pm-tricks.com +966554665714 /Sayed Mohsen PMP / PMP TRICKS

Chapter 7
Project Cost
Management
PMBOK-6th Page 231 to 270
Lecture 04 : Project Cost Management
Contents
1 Plan Cost Management
2 Estimate Costs Planning
3 Determine Budget
4 Control Costs M&C
BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

1.Plan Cost Management (Planning)
Cost
Management

• Defining how the project costs will be estimated, budgeted, managed, Monitored, and controlled.
‫ ووضع ز‬،‫المشوع‬
.‫ميانيتها وإدارتها ومراقبتها والتحكم بها‬ ‫• عملية تحديد كيفية تقدير تكاليف ر‬
✓ provides guidance and direction on how the project costs will be managed throughout the project.
‫المشوع عىل مدار ر‬
.‫المشوع‬ ‫✓ توفر اإلرشاد والتوجيه بشأن كيفية إدارة تكاليف ر‬

Project Cost Management
( 1 ) Plan Cost Management
Tools &
Input
Techniques Outputs
1. Project charter 1. Expert judgment

2. Project management plan 2. Data Analysis 1. Cost management plan
. Schedule management plan 3. Meetings
. Risk management plan
3. EEF
4. OPA

Inputs
1- Project charter
✓ The project charter defines the project approval requirements, provides the preapproved financial resourcesthat will influence
the management of the project Costs.
2- Project management plan

✓ Schedule management plan. establishes the criteria and the activities for developing, monitoring, and controlling the schedule.
The schedule management plan provides processes and controls that will impact cost estimation and management.
✓ Risk management plan. provides the approach for identifying, analyzing, and monitoring risks. The risk management plan
provides processes and controls that will impact cost estimation and management.
3- Enterprise environmental factors

✓ Organizational culture and structure
✓ Market conditions
✓ Currency exchange rates
4- Organizational process assets

✓ Existing formal and informal cost estimating and budgeting-related policies, procedures, and guidelines.
✓ Historical information and lessons learned repository
T&T
1- EXPERT JUDGMENT
Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:
• Previous similar projects
• Information in the industry, discipline, and application area
• Cost estimating and budgeting
• Earned value management.
2- DATA ANALYSIS
Alternatives analysis
Can include reviewing strategic funding options such as: self-funding, funding with equity, or funding with debt. It can also
include consideration of ways to acquire project resources such as making, purchasing, renting, or leasing.
3- MEETINGS
Project teams may hold planning meetings to develop the Cost management plan. Attendees may include the project manager,
the project sponsor, selected project team members, selected stakeholders, anyone with responsibility for Project Cost.

Outputs
❑Cost management plan

▪ It’s a component of the project management plan. ‫المشوع‬
‫ه إحدى مكونات خطة إدارة ر‬
‫ي‬
▪ Describes how the project costs will be planned, structured, and controlled .‫المشوع وتنسيقها وضبطها‬ ّ
‫توضح كيفية التخطيط لتكاليف ر‬
▪ Cost management plan can establish the following: :‫يىل‬

‫يمكن ان تحدد خطة إدارة التكاليف ما ي‬
1- Units of measure (such as staff hours, staff days, or weeks for time measures; meters, liters, tons, kilometers, or
cubic yards for quantity measures; or lump sum)
2- Level of Precision (rounding up or down, ex: US$995.59 to US$1,000) ‫مستوى الضبط‬
3- Level of Accuracy The acceptable range (ex: ± 10%) ‫ يتم تحديد النطاق المقبول‬.‫مستوى الدقة‬
4- Control thresholds (agreed-upon amount of variation to be allowed before some action needs to be taken)
5- Organizational procedures links. ‫روابط اإلجراءات التنظيمية‬
6- Rules of performance measurement ‫قواعد قياس األداء‬
7- Reporting formats ‫أشكال اإلبالغ‬

2.Estimate Costs (Planning)
Cost
Management

• Developing an approximation of the cost of resources needed to complete project work.

‫• ه عملية وضع تقدير تقريب لتكلفة الموارد المالية الالزمة إلكمال عمل ر‬
.‫المشوع‬ ‫ي‬ ‫ي‬
✓ Determines the monetary resources required for the project.

‫✓ تحدد مقدار الموارد المالية الالزمة ر‬
.‫للمشوع‬

( 2 ) Estimate Costs
Tools &
Input
Techniques Outputs
Project management plan .1 Expert judgment

• Cost management plan .2 Analogous estimating .1 Cost estimates
• Quality management plan .3 Parametric estimating .2 Basis of estimates
• Scope baseline .4 Bottom-up estimating .3 Project documents
.2 Project documents .5 Three-point estimating updates
• Lessons learned register .6 Data analysis • Assumption log
• Project schedule • Alternatives analysis • Lessons learned register
• Resources requirements • Reserve analysis • Risk register
• Risk register • Cost of quality
.3 Enterprise environmental .7 Project management
factors information system
.4 Organizational process .8 Decision making
assets • Voting

TT ❑ Analogous Estimating ‫التقدير التناظري‬
• Uses values of a previous project that are similar to the current project.
.‫الحال‬ ‫لمشوع سابق مشابهة ر‬
‫للمشوع‬ ‫يستخدم تقدير التكلفة التناظري قيم ر‬
‫ي‬
TT ❑ Parametric Estimating ‫التقدير باستخدام المعامالت‬
• Uses a statistical relationship between relevant historical data and other variables (e.g., square footage in construction).
‫يعتمد عىل العالقة اإلحصائية ز‬
‫بي البيانات السابقة والمتغيات األخرى‬
TT ❑ Bottom-up estimating ‫أعل‬
‫ال ي‬‫التقدير من أسفل ي‬
• The cost of individual work packages or activities is estimated to the greatest level of specified
detail. The detailed cost is then summarized or “rolled up” to higher levels.
‫ ثم يتم تلخيص التكلفة المفصلة أو تقريبها‬.‫يتم تقدير تكلفة حزم العمل أو األنشطة الفردية بأعىل مستوى من التفاصيل المحددة‬
.‫إل مستويات أعىل ألغراض رفع التقارير‬
2. Estimate Costs (Planning)
TT ❑ Three-Point Estimating ‫ثالث النقاط‬

‫التقدير ي‬
✓ The accuracy of single-point duration estimates may be improved by considering estimation uncertainty and risk.
M : Most likely (based on realistic effort assessment for the required work) ‫اكي الحاالت حدوثا للنشاط‬ ً
‫استنادا إل تحليل سيناريو ر‬ ‫التكلفة‬
ً
O : Optimistic (best-case scenario for the activity) ‫التكلفة استنادا إل تحليل سيناريو أفضل الحاالت للنشاط‬
ً
P : Pessimistic (worst-case scenario for the activity.) ‫استنادا إل تحليل سيناريو أسوأ الحاالت للنشاط‬ ‫التكلفة‬
❖ Triangular distribution. E = (O + M + P) / 3
❖ Beta distribution. E = (O + 4M + P) / 6

TT ❑ Data analysis
✓ Alternatives analysis
• Used to evaluate identified options in order to select which options or approaches to use to execute
and perform the work of the project.
An example would be:
Evaluating the cost, schedule, resource, and quality impacts of buying versus making a deliverable.
✓ Reserve analysis.
• Cost estimates may include contingency reserves to account for cost uncertainty.
• Contingency reserves are the budget within the cost baseline that is allocated for identified risks.
• Contingency reserves are often viewed as the part of the budget intended to address the known unknowns
that can affect a project. For example, rework for some project deliverables could be anticipated, while the
amount of this rework is unknown.
✓ Cost of quality
TT ❑ PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)
• Can include spreadsheets, simulation software, and statistical analysis tools to assist with cost estimating.
‫ز‬ ‫يمكن أن يتضمن نظام معلومات إدارة ر‬
‫ة‬.‫اإلحصائ للمساعدة يف تقدير التكلف‬
‫ي‬ ‫المشوع جداول بيانات وبرمجيات محاكاة وأدوات التحليل‬
❑ DECISION MAKING
• The decision-making techniques that can be used in the Estimate Costs process include voting
• Voting is an assessment process having multiple alternatives with an expected outcome in the form of
future actions. These techniques are useful for engaging team members to improve estimate accuracy
and commitment to the emerging estimates.

O ❑ COST ESTIMATES ‫تقديرات التكلفة‬
Costs are estimated for all resources that are applied to the cost estimate includes :
• Direct Cost (Labor, materials, equipment and services.) ‫ر‬

‫المباشة‬ ‫التكاليف‬
• Inflation allowance, exchange rates ‫مخصص التضخم وأسعار رصف العملة‬
• Cost contingency reserve
‫ر‬
• Indirect costs ‫المباشة‬ ‫التكاليف غي‬

O ❑ BASIS OF ESTIMATES ‫تقديرات التكلفة‬
❑ Documentation of the basis of the estimate (i.e., how it was developed),
❑ Documentation of all assumptions made,
❑ Documentation of any known constraints,
❑ Documentation of identified risks included when estimating costs,
❑ Indication of the range of possible estimates (e.g., US$10,000 (±10%) to indicate that the item is
expected to cost between a range of values), and

3. Determine Budget (Planning)
Cost
Management

• Aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
.‫إجمال التكاليف التقديرية لألنشطة الفردية أو حزم العمل إلنشاء مرجع معتمد للتكاليف‬
‫ي‬ ‫• ي‬
‫ه عملية حساب‬
✓ Determines the cost baseline against which project performance can be monitored and controlled.
‫✓ تحدد الخط المرجع للتكلفة الب يمكن زف ضوئها متابعة أداء ر‬
‫المشوع والتحكم فيه‬ ‫ي‬ ‫ي‬ ‫ي‬

( 3 ) Determine Budget
Tools &
Input
Techniques Outputs
1. Project management plan 1. Expert judgment

2. Project documents 2. Cost aggregation 1. Cost baseline
3. Business documents 3. Reserve analysis 2. Project funding requirements
4. Agreements 4. Historical information 3. Project document updates
5. Enterprise environmental review
factors 5. Funding limit
6. Organizational process reconciliation
assets 6. Financing

3.Determine Budget (Planning)
TT ❑ COST AGGREGATION ‫تجميع التكاليف‬
✓ Cost estimates are aggregated by work packages in accordance with the WBS.
✓ The work package cost estimates are then aggregated for the higher component levels of the WBS (such as control
accounts) and, ultimately, for the entire project.
‫تجميع التكاليف من مستوى األنشطة ال حزم العمل ثم ال حسابات التحكم ثم ال ر‬

.‫المشوع بالكامل‬

TT ❑ Data Analysis ‫تحليل البيانات‬ Management Reserve
Contingency Reserve
Cost Baseline
Reserve Analysis :
Cost Budget
• Contingency Reserve.
• Management Reserve : Cost estimates
• For unforeseen work that is within scope of the project.
• Address the unknown unknowns that can affect a project.
• Is not included in the cost baseline but is part of the overall project budget.
• When an amount of management reserves is used to fund unforeseen work, the amount of management reserve
used is added to the cost baseline, thus requiring an approved change to the cost baseline.
‫ز‬ ‫ز‬
• ‫المرجع للتكلفة ومن ثم يلزم إجراء‬
‫ي‬ ‫االحتياط اإلداري المستخدم إل الخط‬
‫ي‬ ‫ تتم إضافة مقدار‬،‫يف حال استخدام مقدار من االحتياطات اإلدارية يف تمويل أعمال مفاجئة‬
.‫المرجع للتكلفة‬
‫ي‬ ‫تغيي معتمد عىل الخط‬

TT ❑ Funding Limit Reconciliation ‫تجميع التكاليف‬
✓ The expenditure of funds should be reconciled with any funding limits on the commitment of funds for the project.
‫ر‬
.‫بالمشوع‬ ‫يجب تسوية إنفاق التمويالت مع أي قيود تمويل عىل ز‬
‫اليامات التمويل الخاصة‬
✓ A variance between the funding limits and the planned expenditures will sometimes necessitate the rescheduling
of work to level out the rate of expenditures.
ً
‫أحيانا التباين ز‬
.‫بي حدود التمويل والمرصوفات المخططة يحتم إجراء إعادة جدولة لألعمال لتسوية معدل اإلنفاق‬
Q- a project manager in construction project, if the Project Sponsor tells you that the project will be terminated
because of Stumbled in the credit limit of the bank. What could have done by the project manager to prevent this
type of situation?
A. Funding Limit Reconciliation
B. Reserve Analysis
C. Critical path method
D. Critical chain method
TT ❑ Financing ‫التمويل‬
✓ Financing entails acquiring funding for projects. .‫يستلزم التمويل الحصول عىل األموال الالزمة للمشاري ع‬
✓ It is common for long-term infrastructure and industrial to seek external sources of funds. If a project is funded
externally, the funding entity may have certain requirements that are required to be met.
‫ وإذا‬.‫من الشائع أن تسع مشاري ع البنية التحتية طويلة األجل والمشاري ع الصناعية ومشاري ع الخدمات العامة للحصول عىل مصادر خارجية للتمويل‬
ِّ ً ً ‫ُم ِّول ر‬
.‫الب يلزم استيفاؤها‬
‫ي‬ ‫اطات‬
‫االشي‬ ‫بعض‬ ‫ل‬ ‫الممو‬ ‫للكيان‬ ‫يكون‬ ‫أن‬ ‫الممكن‬ ‫فمن‬ ،‫ا‬ ‫خارجي‬ ‫تمويال‬ ‫المشوع‬

O ❑ Cost Baseline ‫المرجع للتكلفة‬

‫ي‬ ‫الخط‬
✓ Is the approved version of the time-phased project budget.

‫نسخة معتمدة من موازنة ر‬
.‫المشوع المقسمة عىل مراحل زمنية‬
✓ Excluding any management reserves. .‫ال تشمل االحتياطات اإلدارية‬
✓ Can only be changed through formal change control procedures.

.‫ال يمكن تغييها إال من خالل اإلجراءات الرسمية للتحكم ز يف التغيي‬
✓ It is used as a basis for comparison to actual results. ‫يستخدم كأساس للمقارنة بالنتائج الفعلية‬


O ❑ Project Funding Requirements ‫ر‬

‫المشوع‬ ‫متطلبات تمويل‬
▪ 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 anticipated liabilities.
▪ Funding often occurs in incremental amounts, and may

not be evenly distributed, which appear as steps.
▪ The total funds required are those included in the

cost baseline plus management reserves.

4. Control Costs (M/C)
Cost
Management

• Monitoring the status of the project to update the project costs and managing changes to the cost baseline.
‫ر‬ ‫ر‬
.‫مرجع للتكلفة‬
‫ي‬ ‫الب تطرأ عىل الخط ال‬ ‫• ي‬
‫ه عملية مراقبة حالة المشوع من أجل تحديث تكاليف المشوع وإدارة التغييات ي‬
✓ The cost baseline is maintained throughout the project.

‫✓ الحفاظ عىل الخط المرجع للتكلفة عىل مدار ر‬
.‫المشوع‬ ‫ي‬

( 4 ) Control Costs
Tools &
Input
Techniques Outputs
1. Project management plan .1 Expert judgment

2. Project documents .2 Data analysis 1. Work Performance
3. Project funding • Earned value analysis Information
requirements • Variance analysis 2. Cost forecasts
4. Work performance data • Trend analysis 3. Change requests
5. Organizational process • Reserve analysis 4. Project management plan
assets .3 To-complete performance updates
index 5. Project documents
.4 Project management updates
information system

TT ❑ Data Analysis
❑ Earned Value analysis: ‫تحليل القيمة المكتسبة‬
1- Planned Value (PV) ‫قيمة األعمال المخطط تنفيذها عند نقطة زمنية محددة‬
- It is the authorized budget planned for the work to be accomplished for an activity.
.‫ه الموازنة المعتمدة المخططة لألعمال المطلوب تنفيذها لنشاط أو مكون بهيكل تجزئة العمل‬
‫ي‬
2- Earned value (EV) ‫القيمة المكتسبة من تنفيذ اعمال فعلية عند نقطة زمنية محددة‬
- It is the budget associated with the authorized work that has been completed.
.‫الب تم استكمالها‬
‫ه الموازنة المقينة باألعمال المعتمدة ي‬
‫ي‬
3- Actual Cost (AC) ‫الب تم تنفيذها‬

‫التكاليف الفعلية لألعمال ي‬
- Is the realized cost incurred for the work performed on an activity during a specific time period
‫ز‬
.‫ه التكلفة الواقعية المتكبدة لألعمال المنفذة يف النشاط خالل فية زمنية معينه‬
‫ي‬

‫‪Lecture 04 : Project Cost Management‬‬
‫)‪4. Control Costs (M/C‬‬
‫‪TT‬‬ ‫‪❑ Data Analysis‬‬
‫‪❑ Variance analysis:‬‬ ‫تحليل التباين‪.‬‬
‫ز‬
‫الزمب معيا عنه بالفرق ز‬ ‫ً‬
‫بي القيمة المكتسبة والقيمة المخططة‪1- Schedule variance (SV) .‬‬ ‫ي‬ ‫هو مقياس ألداء الجدول‬
‫) ‪( SV = EV – PV‬‬
‫هو قياس أداء التكلفة ر‬

‫للمشوع ويتم التعبي عنه بالفرق ز‬
‫بي القيمة المكتسبة والتكلفة الفعلية‪2- Cost variance (CV) .‬‬
‫) ‪( CV = EV – AC‬‬
‫)‪3- Schedule Performance index (SPI‬‬ ‫ز‬

‫الزمب‬ ‫هو مقياس لكفاءة الجدول‬
‫ي‬
‫) ‪( SPI = EV / PV‬‬
‫)‪4- Cost Performance index (CPI‬‬ ‫مقياس كفاءة تكلفة الموارد بالموازنة‬
‫) ‪( CPI = EV / AC‬‬
‫®‪BY: EL-Sayed Mohsen , PMP®, PMI- RMP‬‬
4.Control Costs (M/C)
Example :
Cost/Unit Quantity
Budget 1000 180
Actual 1200 160
PV =1000x180 = 180,000.00
EV =1000x160 = 160,000.00
AC =1200*160 = 192,000.00
Variance :
SV = EV - PV = 160'000 - 180'000 = -20'000 (Behind Schedule)
CV = EV - AC = 160'000 - 192'000 = -32'000 (Over Budget)
Performance Index
SPI = EV / PV = 160'000 / 180'000 = 0.88 (Behind Schedule)
CVI = EV / AC = 160'000 / 192'000 = 0.833 (Over Budget)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
$1000
(Months) 0 1 2 3 4 5 9
6 7 8 10
$600 $800
EV PV
Variance :
SV = EV - PV = 600 - 800 = -200 (Behind Schedule
CV = EV - AC = 600 - 900 = -300 (Over Budget)
AC=$900
Performance Index
SPI = EV / PV = 600 / 800 = 0.75 (Behind Schedule)
CVI = EV / AC = 600 / 900 = 0.66 (Over Budget)
❑ Variance analysis: .‫تحليل التباين‬

SV > 0 Ahead of Schedule CV > 0 Under Budget

SV = 0 On Schedule CV = 0 On Budget
SV < 0 Behind Schedule CV < 0 Over Budget
SPI > 1 Ahead of Schedule CPI > 1 Under Budget
SPI = 1 On Schedule CPI = 1 On Budget
SPI < 1 Behind Schedule CPI < 1 Over Budget

4.Control Costs (M/C)
❑ Trend analysis: .‫تحليل االتجاه‬
Forecasting ‫التوقع‬
▪ Estimate at Completion (EAC) = Actual costs + Estimate to Complete (ETC)
‫القيمة المتوقعة زف نهاية ر‬
‫ المتوقع النهاء ر‬+ ‫المشوع = القيمة الفعلية حب اآلن‬
‫المشوع‬ ‫ي‬
1- If future work will be accomplished at the planned rate, use:

EAC = AC + BAC – EV ‫ المتبق ف ز‬+ ‫التكاليف الفعلية‬
‫الميانية‬ ‫ي‬
2- If the CPI is expected to be the same for the remainder of the project
‫ويفيض أن يتم تنفيذ أعمال التقدير حب االكتمال وفق ر‬
‫مؤش أداء التكلفة‬
EAC = BAC/CPI
‫الياكم نفسه الذي واجهه ر‬
‫المشوع حب اليوم‬ ‫ي‬
3- If both the CPI and SPI influence the remaining work
EAC = AC + [(BAC – EV)/ (CPI x SPI)]

TT ❑ To-complete performance index (TCPI) ‫ر‬

‫مؤش اآلداء للقيمة المطلوبة إلكمال ر‬
‫المشوع‬
• 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.
‫ز‬
‫معي‬ ‫هو قياس أداء التكلفة المطلوب تحقيقه باستخدام الموارد المتبقية لتحقيق هدف إداري‬
• Expressed as the ratio of the :
‫المتبق‬
‫ي‬ ‫نسبة االعمال المتبقية إل التمويل‬
• The equation for the TCPI based on the BAC:

(BAC – EV) / (BAC – AC).
(BAC – EV) / (EAC – AC). If BAC is no longer Valid

If TCPI < 1 Harder to complete
If TCPI > 1 Easier to complete

PMP
Questions & Answers
50

Q1) your vice president asked you what the Estimate at Completion
(EAC) will be for a small project you are working on. You were given a
budget of $30,000, and to date you have spent $20,000 but only
completed $10,000 worth of work. You are sure the future work will be
accomplished at the planned rate. What is the EAC?
A- $10,000
B- $60,000
C- $30,000 EAC=AC+BAC-EV
D- $40,000
=20,000+30,000-10,000
=40,000
Q2) You are working on a project to set up a call centre for your client. The duration of
the project is two years. One year has passed, however, only 40% of the work has been
completed against the schedule, which says that by now 50% of the work should have
been completed. To date, you have spent 60% of the budget. What is the cost
performance index of the project?
A- 1.25
B- 1.5 In the question, you have not been provided with the budget,
C- 0.8 therefore, let us assume that the project budget is “x”.
D- 0.67 Earned Value = 40% of the budget
= 0.4x
Actual Cost = 60% of the budget
= 0.6x
We know that the cost performance index = (Earned Value) /
(Actual Cost)
= 0.4x / 0.6x
= 0.67

Q3) You have received an urgent call from management and they asked
you to find the cost estimate of a new project. Since time is critical and
you have to provide them with the cost estimate, which technique will you
use to calculate the project cost?
A- Parametric
B- Analogous
C- Bottom up
D- Critical path method

Q4) The CV= -1.1 and the SV=1.2. How is your project doing?
A. Ahead of schedule, under budget
B. Ahead of schedule, over budget
C. Behind schedule, under budget
D. Behind schedule, over budget

Q5) in your project, SPI is 0.8, CPI 1.2. You analyzed the baseline and
decided to return the schedule back to meet customer plan. You will:
A- Check tasks which can be removed from baseline
B- Check with team task can be automated and save time
C- Check option of crashing the project
D- Check with your sponsor

Q6) The estimating technique that uses a statistical relationship between the
historical data and other variables (e.g., square footage in construction) to calculate
an estimate for an activity parameters is called:
A- Parametric Estimating
B- Analogous Estimating
C- Vendor Bid Analysis
D- Bottom-up Estimating
PMBOK 244

Q7) As part of earned value management (EVM), a project manager is calculating
the to-complete performance index (TCPI) based on EAC. The data he has is as
follows: The budget at completion for the project is $100,000. The earned value for
the project is $25,000. The actual costs to date are $40,000, and the estimate at
completion is $115,000. What is the TCPI that he will get?
A- 1.1
B- 0.9
C- 1
D- 0 BAC-EV/EAC-AC
100,000-25,000/115,000-40,000
=1

Q8) For the week of July 15, you will report to management that your
project has an EV of $7700 and a PV of $9600. What is the status of
your project?
A- Ahead of schedule
B- On schedule
C- Not enough information provided
D- Behind schedule
EV> PV
SO the Project is Behind Schedule

Q9) You are reviewing your project where PV=5000 & AC=4000 & EV=3000. What is
the project situation?
A- Project is going normal and it will be managed and closed normally.
B- Project is under budget but ahead of schedule.
C- Project is going slower than planned.
D- Project should be terminated as no solution to fix it.
EV> AC&PV
SO the Project is Behind Schedule & Over Budget
= Project is going slower than planned

Q10) You are a Project manager in construction Project. If an
pessimistic estimate (P) = $12, optimistic estimate for an activity (O) =
$8, Most likely (M) =$10. What is the Cost estimate activity by Beta?
A- 9.5 $
B- 9 $
C- 11 $
D- 10 $
P+4M+O/6
12+4*10+8/6
=10
Q11) You are a project manager in Big construction project, During the
implementation phase the Project Sponsor tells you that the project
will be terminated because of tumble in the credit limit of the bank.
What could have done by the project manager to prevent this type of
situation?
A- Benchmarking
B- Cost Aggregating
C- Funding Limit Reconciliation
D- Historical information Review

Q12) Your project in the planing phase, the project team
commence to estimating cost by using work breakdown
structure. What is the tool the project team use ?
A- Analogous estimating
B- Parametric estimating
C- Top-down estimating
D- Bottom-up estimating

Q13) You are managing a project which has BAC 90.000 $ and suppose
to finish in 9 months. After 5 months, you found you finished work of 4
months and you spent 60% of the budget. You are doing the calculation
to get EV, CPI, SPI, which was?
A- EV= 40,000 & CPI = 0.74 & SPI = 0.8
B- EV= 30,000 & CPI = 0.74 & SPI = 0.9
C- EV= 35,000 & CPI = 0.74 & SPI = 0.9
D- EV= 35,000 & CPI = 0.74 & SPI = 2
EV= 4/9 * 90,000

= 40,000
Q14) Which document provides high-level cost information
that is useful when planning for project cost management?
A- Cost management plan
B- Cost baseline
C- Management reserve
D- Project Charter

Q15) A project team had planned to accomplish $25,000 worth
of work to date. It has spent $23,000 to date, and accomplished
$20,000 worth of work. Which of the following statements is
true about the project?
A- The project is $5,000 under budget EV=$20,000
B- The project is $5,000 Over budget AC=$23,000
C- The project is $3,000 Over budget
D- The project is $2,000 under budget CV= EV-AC
= -3,000

Q16) You are the project manager of the HDM Project. Your
project must be completed by September 11 and cannot exceed
$10,000. $10,000 is an example of which one of the following?
A- Constraint
B- Management reserve
C- Scheduled completion date
D- Assumption

❖ PMP Preparation Course- Earn 35 PDUs- 6th- Edition
❖11 Exams by knowledge Areas
❖ 5 Exams By Process Groups
❖ 3- Full Exams
❖ PMP Change management 50 Qs
www.pm-tricks.com
❖ PMP Exam Outline 50 Qs
❖ PMP Exam Maths 50 Qs
❖Study Group in Facebook :-

https://www.facebook.com/groups/PMPTRICKS/
❖My YouTube Channel :-

https://www.youtube.com/channel/UCWB63onAp4wm1crrLphkNjA/playlists?view_as=subscriber
/Sayed Mohsen PMP +966554665714 / PMP TRICKS

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PMP PREPARATION COURSE

BY: SAYED MOHSEN, PMP, PMI-RMP, PMI-SP

www.pm-tricks.com +966554665714 /Sayed Mohsen PMP / PMP TRICKS

1 Plan Cost Management

2 Estimate Costs Planning

4 Control Costs M&C

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

( 1 ) Plan Cost Management

1. Project charter 1. Expert judgment

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

2- Project management plan

3- Enterprise environmental factors

4- Organizational process assets

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

❑Cost management plan

▪ Cost management plan can establish the following: :‫يىل‬

7- Reporting formats ‫أشكال اإلبالغ‬

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

• Developing an approximation of the cost of resources needed to complete project work.

✓ Determines the monetary resources required for the project.

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

Project management plan .1 Expert judgment

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

TT ❑ Parametric Estimating ‫التقدير باستخدام المعامالت‬

TT ❑ Three-Point Estimating ‫ثالث النقاط‬

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

TT ❑ PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

O ❑ COST ESTIMATES ‫تقديرات التكلفة‬

• Direct Cost (Labor, materials, equipment and services.) ‫ر‬

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

O ❑ BASIS OF ESTIMATES ‫تقديرات التكلفة‬

❑ Documentation of the basis of the estimate (i.e., how it was developed),

❑ Documentation of all assumptions made,

❑ Documentation of any known constraints,

❑ Documentation of identified risks included when estimating costs,

expected to cost between a range of values), and

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

1. Project management plan 1. Expert judgment

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

‫تجميع التكاليف من مستوى األنشطة ال حزم العمل ثم ال حسابات التحكم ثم ال ر‬

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

TT ❑ Data Analysis ‫تحليل البيانات‬ Management Reserve

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

TT ❑ Funding Limit Reconciliation ‫تجميع التكاليف‬

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

O ❑ Cost Baseline ‫المرجع للتكلفة‬

✓ Is the approved version of the time-phased project budget.

✓ Excluding any management reserves. .‫ال تشمل االحتياطات اإلدارية‬

✓ Can only be changed through formal change control procedures.

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

BY: EL-Sayed Mohsen , PMP®, PMI- RMP®

O ❑ Project Funding Requirements ‫ر‬

▪ Funding often occurs in incremental amounts, and may

▪ The total funds required are those included in the