Time
5 hours 14 minutes
Difficulty
Intermediate
CEU/CPE
10

Video Description

This lesson covers how to determine the budget of a project. Determining the budget rolls up the cost estimates into a total project budget that creates the Cost Baseline. The Cost Baseline includes a time based approach to determine project costs as time passes and the Project Funding Requirements. [toggle_content title="Transcript"] The last area under planning for cost management is to determine the budget. Determining the budget rolls the cost estimates into a total project budget. That creates the cost baseline which includes the time based approach to determine the project costs as time passes and the project funding requirements are determined. Your key outputs is the cost baseline and the project funding requirements. Your cost baseline is going to be your approved budget. The one thing for the cost baseline it does not include the management reserve. Any of those risks that you put in. Example of the one million dollar building does not include the extra hundred thousand that you included. It doesn't also include fee so fee is also known as profit. Your project funding is I am going to need ten percent of this project funding upfront so it's based between the time when you need the money because you don't always get paid everything at once and most times you don't get paid at the very end. So you try to figure out what cycle am going to get paid. Is it monthly, are there milestone that need to be completed. It's your basic over how much you are going to get paid and what I am going to get paid. Your inputs are the cost management plan, scope baseline...scope baseline is your WBS, WBS dictionary and your scope statement that came out of the scope knowledge area. Activity cost estimates which was created in this knowledge area. So that's the basis of estimates. Your project schedule comes out of the time knowledge area. Resource counters come out of the human resources knowledge area. Risk register comes out of the risk knowledge area and any agreements that you have within any of those or prime or quick. Any agreements whatsoever. Your tools are cost aggregation, reserve analysis, expert judgement, historical relationships and funding money reconciliation. In summary, you have all these inputs which are cost management plan, scope baseline, activity cost estimates, basis of estimates, project schedule, resource counters, risk register and agreements. The tools are cost aggregation, reserve analysis, expert judgement, historical relationships and funding money reconciliation. Your outputs is the cost baseline and the project funding requirements. [/toggle_content]

Video Transcription

00:04
The last area under planning for cost management is to determine the budget.
00:09
Determined the budget rules up the cost estimates into a total project budget that creates the cost. Baseline.
00:15
What's includes the time based approach to determine the project cost
00:20
as time passes and the project funding AH,
00:24
requirements are determined.
00:26
So
00:27
your key outputs is the cost baseline and the project's funding requirements.
00:32
Your cost baseline
00:34
is going thio
00:36
be your approved budget
00:38
The one thing for the cost baseline. It doesn't include the management reserve, so any of those risks that included. So the example of the $1 million building doesn't include the extra 100,000 that you included. It doesn't also include fee, so,
00:53
uh, he is also known as profit.
00:56
Your project funding is
00:59
I am going to need 10% of this
01:02
project's funding up front. So it's basically telling
01:07
when you need the money because you don't always get paid everything at once,
01:11
and most times you don't get paid at the very end. So they're trying to figure out what cycles I'm gonna get paid. Is it monthly?
01:18
Um, are there milestones that need to be complete?
01:22
It's your basic of Ah, how am I gonna get paid and what am I gonna get paid?
01:26
Um,
01:27
your inputs are the cost management plan
01:30
scope baseline.
01:33
Uh, scope Baseline
01:34
is your W b s W be extinct dictionary. And you're,
01:40
um, scope statement that came out of the scope knowledge area
01:44
activity cost estimates, which was created in this knowledge area. So what was the basis of estimates?
01:49
Your project's schedule comes out of the time knowledge area
01:53
resource calendars comes out of human resource is knowledge area
01:57
risk. Five Star comes out of your risk knowledge area
02:00
and any agreements that you have with any vendors
02:05
or prime or quiet. Any agreements whatsoever,
02:10
your tools,
02:13
our cost aggregation,
02:15
reserve analysis, expert judgment,
02:19
historical relationships and, ah,
02:23
funding limit reconciliation.
02:27
So in summary, you have all these input which are
02:30
cost pension plan scope, baseline activity, call assessments
02:34
basis, basis of estimates, project schedule, resource calendars, risk register and agreements.
02:42
The tools are costs. I aggregation, reserve analysis, expert judgment, historical relationships and funding limit reconciliation.
02:51
Your outputs is the cost baseline and the project funding requirements

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Project Management Professional (PMP) - PMI

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Instructed By

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Vince McKeown
Senior Program Manager at FGS, LLC
Instructor