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There are just two planning processes for the project cost management knowledge area The first process is cost estimating The cost estimating process attempts to predict how much the project will likely cost to reach the conclusion There are three flavors of cost estimating: Rough order of magnitude This project cost estimate approach is very broad and unreliable It s usually created with the preliminary project scope statement and has a range of variance of 25% to +75% for the project completion It s wild Budget estimate This project cost estimate is somewhat reliable, as it s usually created once the project scope statement is approved The budget estimate has a range of variance of 10% to +25% for the project completion Definitive estimate This project cost estimate is the most reliable, but it takes the longest to complete, because you ll need the project s WBS created The approach is also called bottom-up estimating, because you re starting at the bottom of the WBS and working your way to the top The range of variance for the definitive estimate is 5% to +10% for the project completion
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As the project moves into execution, you ll compare the actual costs of the project work to the actual costs to deliver the project work This is where cost budgeting begins Cost budgeting is the actual costs to create the individual work packages as defined in the WBS This process creates the project s cost baseline
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Planning for Project Quality
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Planning for project quality involves determining first what quality means to the program This isn t an esoteric exercise Quality is a conformance to the requirements and a fitness for use The scope statement defines what the requirements are for the project that part s easy You can quickly deduce that to have quality in the project, you ll need to simply adhere to the scope While that s true, there s the second part of the quality definition: fitness for use Imagine a project to create a brick wall as part of your program The project calls for the exact type of bricks to be used, the dimensions of the wall, and all the other specs related to the brick wall The project team can create the wall to the exact specs of the requirements, but if the mortar between the bricks is splattered around the pavement and onto the bricks, and it bulges in and out of the wall that s not fit for use There are implied needs that go along with the project requirements Quality planning defines the conformance to requirements and captures the spirit and intent of the deliverable Quality planning also defines the quality assurance and quality control processes the project will adhere to Quality planning creates the quality management plan and the scope management plan
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When it comes to human resources planning in a project, most of the activities will defer to the constraints created by the program manager and the enterprise environmental factors established by the organization as a whole Human resources planning creates the staffing management plan, which communicates several things: Resource requirements to complete the project work Project management activities the project team will participate in, such as quality assurance, risk management, and procurement Roles and responsibilities for the project When project team members are brought onto and released from the project team This process will rely largely on the enterprise environmental factors to guide decisions within the project Considerations are given for the interfaces the project team will interact with, union-based agreements, and the organizational structure where the project is being held NOTE Unions are not constraints they are stakeholders The collective bargaining agreement, however, may have constraints on the project
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