6th Edition PMBOK® Guide–Process 7.3 Determine Budget: Outputs


The scope of the project was broken down to the level of work packages with the scope management knowledge area, and each work package was then broken down into a series of activities in the schedule management knowledge area.   In the last process 7.2 Estimate Costs, the cost of each of those activities was estimated.   Now in this process, the cost of each work package is going to be aggregated from the cost of the activities it comprises, and then the total cost of the entire project is going to be aggregated from the cost of the work packages, and this will be the cost baseline against which the performance of the project will be measured going forward.

Let’s discuss the inputs to this process.

7.3.1 Project Management Plan

The components of the overall project management plan that will be inputs to this process are:

  • Cost management plan–an output of process 7.1 Plan Cost Management, this gives guidelines on bow to do all of the other planning processes, including this one.
  • Resources management plan–this provides information on the cost of resources which are needed to estimate the overall project budget.
  • Scope baseline–this consists of three documents:
    • Project scope statement–breaks down the scope from the level of requirements discussed at the initiating process phase of the project, to the level of deliverables that fulfill those requirements
    • WBS (Work Breakdown Structure)–breaks down the scope from the level of deliverables (found in the project scope statement) to the level of work packages
    • WBS Dictionary–this contains information about the work packages related to other constraints (this will be updated with cost estimates as a result of this process)

7.3.1.2 Project Documents

7.2.1.2 Project Documents

Schedule Knowledge Area

  • Basis of estimates–output of process 6.4 Estimate Activity Durations, this may contain assumptions related to the activities which may have a bearing on whether these costs should be included in the budget, particularly if they are indirect costs (costs not necessarily associated solely with the current project)
  • Project schedule–output of process 6.5 Develop Schedule, contains planned start and finish dates for the activities and work packages, which may have a bearing on which calendar period these project costs are to be incurred in.

Cost Knowledge Area

  • Cost estimates–As a result of process 7.2 Estimate Costs, cost estimates for each activity within a work package are aggregated to obtain a cost estimate for each work package,

Risk Knowledge Area

  • Risk register–the risk register (an output of process 11.2 Identify Risks, and updated in every risk management planning process that follows it) contains information on costs for risk responses.

7.3.1.3 Business Documents

These are documents created in the initiating process phase, which are the outputs of processes done by business analysts.

  • Business case–includes the financial success factors for the project
  • Benefits management–what are the benefits of the project on an ongoing basis to the firm?   The benefits management plan may include the target benefits, measured by net present value or return on investment, to give two examples.

7.3.1.4 Agreements

Agreements is the PMI code word for “contracts” between the company and vendors who are contributing resources to be used by the company to do the project, or products which will be incorporated as components of the project.

7.3.1.5 Enterprise Environmental Factors

For large-scale projects that extend multiple years with multiple currencies, it may be necessary to refer to exchange rates, so that any fluctuations in those rates and be considered in the upcoming process 7.3 Develop Budget.

7.3.1.6 Organizational Process Assets

  • Historical information and lessons learned repository from previous similar projects.
  • Existing cost budgeting-related policies and guidelines.
  • Cost budgeting tools
  • Reporting methods (which stakeholders get reports, in what format, and how often)

The next post will cover the tools and techniques of this process.

 

 

6th Edition PMBOK® Guide–Process 7.3 Determine Budget: Tools and Techniques


The scope of the project was broken down to the level of work packages with the scope management knowledge area, and each work package was then broken down into a series of activities in the schedule management knowledge area.   In the last process 7.2 Estimate Costs, the cost of each of those activities was estimated.   Now in this process, the cost of each work package is going to be aggregated from the cost of the activities it comprises, and then the total cost of the entire project is going to be aggregated from the cost of the work packages, and this will be the cost baseline against which the performance of the project will be measured going forward.

Let’s discuss the inputs to this process.

7.3.1 Project Management Plan

The components of the overall project management plan that will be inputs to this process are:

  • Cost management plan–an output of process 7.1 Plan Cost Management, this gives guidelines on bow to do all of the other planning processes, including this one.
  • Resources management plan–this provides information on the cost of resources which are needed to estimate the overall project budget.
  • Scope baseline–this consists of three documents:
    • Project scope statement–breaks down the scope from the level of requirements discussed at the initiating process phase of the project, to the level of deliverables that fulfill those requirements
    • WBS (Work Breakdown Structure)–breaks down the scope from the level of deliverables (found in the project scope statement) to the level of work packages
    • WBS Dictionary–this contains information about the work packages related to other constraints (this will be updated with cost estimates as a result of this process)

7.3.1.2 Project Documents

7.2.1.2 Project Documents

Schedule Knowledge Area

  • Basis of estimates–output of process 6.4 Estimate Activity Durations, this may contain assumptions related to the activities which may have a bearing on whether these costs should be included in the budget, particularly if they are indirect costs (costs not necessarily associated solely with the current project)
  • Project schedule–output of process 6.5 Develop Schedule, contains planned start and finish dates for the activities and work packages, which may have a bearing on which calendar period these project costs are to be incurred in.

Cost Knowledge Area

  • Cost estimates–As a result of process 7.2 Estimate Costs, cost estimates for each activity within a work package are aggregated to obtain a cost estimate for each work package,

Risk Knowledge Area

  • Risk register–the risk register (an output of process 11.2 Identify Risks, and updated in every risk management planning process that follows it) contains information on costs for risk responses.

7.3.1.3 Business Documents

These are documents created in the initiating process phase, which are the outputs of processes done by business analysts.

  • Business case–includes the financial success factors for the project
  • Benefits management–what are the benefits of the project on an ongoing basis to the firm?   The benefits management plan may include the target benefits, measured by net present value or return on investment, to give two examples.

7.3.1.4 Agreements

Agreements is the PMI code word for “contracts” between the company and vendors who are contributing resources to be used by the company to do the project, or products which will be incorporated as components of the project.

7.3.1.5 Enterprise Environmental Factors

For large-scale projects that extend multiple years with multiple currencies, it may be necessary to refer to exchange rates, so that any fluctuations in those rates and be considered in the upcoming process 7.3 Develop Budget.

7.3.1.6 Organizational Process Assets

  • Historical information and lessons learned repository from previous similar projects.
  • Existing cost budgeting-related policies and guidelines.
  • Cost budgeting tools
  • Reporting methods (which stakeholders get reports, in what format, and how often)

The next post will cover the tools and techniques of this process.

 

 

6th Edition PMBOK® Guide–Process 7.3 Determine Budget: Inputs


The scope of the project was broken down to the level of work packages with the scope management knowledge area, and each work package was then broken down into a series of activities in the schedule management knowledge area.   In the last process 7.2 Estimate Costs, the cost of each of those activities was estimated.   Now in this process, the cost of each work package is going to be aggregated from the cost of the activities it comprises, and then the total cost of the entire project is going to be aggregated from the cost of the work packages, and this will be the cost baseline against which the performance of the project will be measured going forward.

Let’s discuss the inputs to this process.

7.3.1 Project Management Plan

The components of the overall project management plan that will be inputs to this process are:

  • Cost management plan–an output of process 7.1 Plan Cost Management, this gives guidelines on bow to do all of the other planning processes, including this one.
  • Resources management plan–this provides information on the cost of resources which are needed to estimate the overall project budget.
  • Scope baseline–this consists of three documents:
    • Project scope statement–breaks down the scope from the level of requirements discussed at the initiating process phase of the project, to the level of deliverables that fulfill those requirements
    • WBS (Work Breakdown Structure)–breaks down the scope from the level of deliverables (found in the project scope statement) to the level of work packages
    • WBS Dictionary–this contains information about the work packages related to other constraints (this will be updated with cost estimates as a result of this process)

7.3.1.2 Project Documents

7.2.1.2 Project Documents

Schedule Knowledge Area

  • Basis of estimates–output of process 6.4 Estimate Activity Durations, this may contain assumptions related to the activities which may have a bearing on whether these costs should be included in the budget, particularly if they are indirect costs (costs not necessarily associated solely with the current project)
  • Project schedule–output of process 6.5 Develop Schedule, contains planned start and finish dates for the activities and work packages, which may have a bearing on which calendar period these project costs are to be incurred in.

Cost Knowledge Area

  • Cost estimates–As a result of process 7.2 Estimate Costs, cost estimates for each activity within a work package are aggregated to obtain a cost estimate for each work package,

Risk Knowledge Area

  • Risk register–the risk register (an output of process 11.2 Identify Risks, and updated in every risk management planning process that follows it) contains information on costs for risk responses.

7.3.1.3 Business Documents

These are documents created in the initiating process phase, which are the outputs of processes done by business analysts.

  • Business case–includes the financial success factors for the project
  • Benefits management–what are the benefits of the project on an ongoing basis to the firm?   The benefits management plan may include the target benefits, measured by net present value or return on investment, to give two examples.

7.3.1.4 Agreements

Agreements is the PMI code word for “contracts” between the company and vendors who are contributing resources to be used by the company to do the project, or products which will be incorporated as components of the project.

7.3.1.5 Enterprise Environmental Factors

For large-scale projects that extend multiple years with multiple currencies, it may be necessary to refer to exchange rates, so that any fluctuations in those rates and be considered in the upcoming process 7.3 Develop Budget.

7.3.1.6 Organizational Process Assets

  • Historical information and lessons learned repository from previous similar projects.
  • Existing cost budgeting-related policies and guidelines.
  • Cost budgeting tools
  • Reporting methods (which stakeholders get reports, in what format, and how often)

The next post will cover the tools and techniques of this process.

 

 

6th Edition PMBOK® Guide–Process 7.2 Estimate Costs: Outputs


The cost management planning processes are fewer in number than the schedule planning processes because the schedule planning processes first require the scope developed in the scope management process group to be translated into action in the form of activities.   This is done in the “Define Activities” and “Sequence Activities” processes, which have as a by-product the Activities List and Activity Attributes.

This is the starting point for the Estimate Costs process whose main purpose is to take those activities in the Activities List and estimate their costs.   Once this is done, the totals of all the activities in each work package, and then each work package in the WBS, can be done in the following process “Determine Budget.”

Let’s discuss the inputs to this process before we go into specifics on the tools and techniques of the process itself.

7.2.1.1 Project Management Plan

  • Cost management plan–the output of process 7.1 Plan Cost Management.   The specific guidelines that affect this process are:
    • Units of measure–this will be in dollars or the base currency of whatever country the project is being done in
    • Level of precision–how will the cost estimates be rounded up or down
    • Level of accuracy–what is the acceptable range, usually expressed in terms of plus or minus percentage, for determining realistic cost estimates.
  • Scope baseline–there are three separate documents that comprise the scope baseline, which are
    • Project scope statement–breaks down the scope from the requirements to the deliverables needed to fulfill those requirements; may contain some overall financial assumptions and constraints that will affect the budget
    • WBS (Work Breakdown Structure)–the scope is broken down further from the deliverables to the level of work packages, which then are broken down to the level of the activities needed to complete each work package.
    • WBS Dictionary–contains information on the work packages, and will be updated with the cost estimate of the work package during the course of this process
  • Quality management plan–information on cost of quality contained in this management plan may be used to evaluate the cost impact of quality-related activities on the project.

7.2.1.2 Project Documents

These are listed according to the knowledge area they pertain to.

Integration Knowledge Area

  • Lessons learned register–this will be updated as a result of this process if there are any lessons learned during the cost estimating process that will be helpful to improve the accuracy and precision of the cost estimates

Schedule Knowledge Area

  • Project schedule–this is the output of process 6.5 Develop Schedule.   The duration estimates of each work package or activity (an output of process 6.4 Estimate Activity Durations), combined with the information on the resources needed (see resource requirements document below), will be used to create the cost estimates, especially if those resources are charged per unit of time.

Resource Knowledge Area

  • Resource requirements–this identifies the types and quantities of resources required for each work package or activity.   This, combined with the information contained in the project schedule of the duration estimates of each work package or activity (an output of process 6.4 Estimate Activity Durations), will be used to create the cost estimates during this process.

Risk Knowledge Area

  • Risk register–the risk register (an output of process 11.2 Identify Risks, and updated in every risk management planning process that follows it) contains information that can be used to estimate costs, especially when obtaining three-point estimates that include optimistic and pessimistic assumptions.

7.2.1.3  Enterprise Environmental Factors

  • Market conditions–these will determine the standard costs for resources that may be used on the project
  • Published commercial information–for any particular application area, there may be databases that contain standard human resource costs and standard costs for material and equipment that may be used on the project.

7.2.1.4 Organizational Process Assets

  • Historical information and lessons learned repository, especially from similar projects to the one being done at present
  • Cost estimating policies and templates (should be included in the Cost Management Plan)

With these inputs, we are ready to discuss the tools and techniques of this process.   Some of these are “generic” tools and techniques used in any planning process, such as expert judgment, decision making, and the Project Management Information System (the software program such as Microsoft Project).   However, there are some that are specific to the duration and cost estimating processes, such as

  • analogous estimating
  • parametric estimating
  • bottom-up estimating
  • three-point estimating
  • data analysis techniques such as alternatives analysis, reserve analysis, and cost of quality

All of these will be discussed in the following post.

6th Edition PMBOK® Guide–Process 7.2 Estimate Costs: Tools and Techniques


The cost management planning processes are fewer in number than the schedule planning processes because the schedule planning processes first require the scope developed in the scope management process group to be translated into action in the form of activities.   This is done in the “Define Activities” and “Sequence Activities” processes, which have as a by-product the Activities List and Activity Attributes.

This is the starting point for the Estimate Costs process whose main purpose is to take those activities in the Activities List and estimate their costs.   Once this is done, the totals of all the activities in each work package, and then each work package in the WBS, can be done in the following process “Determine Budget.”

Let’s discuss the inputs to this process before we go into specifics on the tools and techniques of the process itself.

7.2.1.1 Project Management Plan

  • Cost management plan–the output of process 7.1 Plan Cost Management.   The specific guidelines that affect this process are:
    • Units of measure–this will be in dollars or the base currency of whatever country the project is being done in
    • Level of precision–how will the cost estimates be rounded up or down
    • Level of accuracy–what is the acceptable range, usually expressed in terms of plus or minus percentage, for determining realistic cost estimates.
  • Scope baseline–there are three separate documents that comprise the scope baseline, which are
    • Project scope statement–breaks down the scope from the requirements to the deliverables needed to fulfill those requirements; may contain some overall financial assumptions and constraints that will affect the budget
    • WBS (Work Breakdown Structure)–the scope is broken down further from the deliverables to the level of work packages, which then are broken down to the level of the activities needed to complete each work package.
    • WBS Dictionary–contains information on the work packages, and will be updated with the cost estimate of the work package during the course of this process
  • Quality management plan–information on cost of quality contained in this management plan may be used to evaluate the cost impact of quality-related activities on the project.

7.2.1.2 Project Documents

These are listed according to the knowledge area they pertain to.

Integration Knowledge Area

  • Lessons learned register–this will be updated as a result of this process if there are any lessons learned during the cost estimating process that will be helpful to improve the accuracy and precision of the cost estimates

Schedule Knowledge Area

  • Project schedule–this is the output of process 6.5 Develop Schedule.   The duration estimates of each work package or activity (an output of process 6.4 Estimate Activity Durations), combined with the information on the resources needed (see resource requirements document below), will be used to create the cost estimates, especially if those resources are charged per unit of time.

Resource Knowledge Area

  • Resource requirements–this identifies the types and quantities of resources required for each work package or activity.   This, combined with the information contained in the project schedule of the duration estimates of each work package or activity (an output of process 6.4 Estimate Activity Durations), will be used to create the cost estimates during this process.

Risk Knowledge Area

  • Risk register–the risk register (an output of process 11.2 Identify Risks, and updated in every risk management planning process that follows it) contains information that can be used to estimate costs, especially when obtaining three-point estimates that include optimistic and pessimistic assumptions.

7.2.1.3  Enterprise Environmental Factors

  • Market conditions–these will determine the standard costs for resources that may be used on the project
  • Published commercial information–for any particular application area, there may be databases that contain standard human resource costs and standard costs for material and equipment that may be used on the project.

7.2.1.4 Organizational Process Assets

  • Historical information and lessons learned repository, especially from similar projects to the one being done at present
  • Cost estimating policies and templates (should be included in the Cost Management Plan)

With these inputs, we are ready to discuss the tools and techniques of this process.   Some of these are “generic” tools and techniques used in any planning process, such as expert judgment, decision making, and the Project Management Information System (the software program such as Microsoft Project).   However, there are some that are specific to the duration and cost estimating processes, such as

  • analogous estimating
  • parametric estimating
  • bottom-up estimating
  • three-point estimating
  • data analysis techniques such as alternatives analysis, reserve analysis, and cost of quality

All of these will be discussed in the following post.

6th Edition PMBOK® Guide–Process 7.2 Estimate Costs: Inputs


The cost management planning processes are fewer in number than the schedule planning processes because the schedule planning processes first require the scope developed in the scope management process group to be translated into action in the form of activities.   This is done in the “Define Activities” and “Sequence Activities” processes, which have as a by-product the Activities List and Activity Attributes.

This is the starting point for the Estimate Costs process whose main purpose is to take those activities in the Activities List and estimate their costs.   Once this is done, the totals of all the activities in each work package, and then each work package in the WBS, can be done in the following process “Determine Budget.”

Let’s discuss the inputs to this process before we go into specifics on the tools and techniques of the process itself.

7.2.1.1 Project Management Plan

  • Cost management plan–the output of process 7.1 Plan Cost Management.   The specific guidelines that affect this process are:
    • Units of measure–this will be in dollars or the base currency of whatever country the project is being done in
    • Level of precision–how will the cost estimates be rounded up or down
    • Level of accuracy–what is the acceptable range, usually expressed in terms of plus or minus percentage, for determining realistic cost estimates.
  • Scope baseline–there are three separate documents that comprise the scope baseline, which are
    • Project scope statement–breaks down the scope from the requirements to the deliverables needed to fulfill those requirements; may contain some overall financial assumptions and constraints that will affect the budget
    • WBS (Work Breakdown Structure)–the scope is broken down further from the deliverables to the level of work packages, which then are broken down to the level of the activities needed to complete each work package.
    • WBS Dictionary–contains information on the work packages, and will be updated with the cost estimate of the work package during the course of this process
  • Quality management plan–information on cost of quality contained in this management plan may be used to evaluate the cost impact of quality-related activities on the project.

7.2.1.2 Project Documents

These are listed according to the knowledge area they pertain to.

Integration Knowledge Area

  • Lessons learned register–this will be updated as a result of this process if there are any lessons learned during the cost estimating process that will be helpful to improve the accuracy and precision of the cost estimates

Schedule Knowledge Area

  • Project schedule–this is the output of process 6.5 Develop Schedule.   The duration estimates of each work package or activity (an output of process 6.4 Estimate Activity Durations), combined with the information on the resources needed (see resource requirements document below), will be used to create the cost estimates, especially if those resources are charged per unit of time.

Resource Knowledge Area

  • Resource requirements–this identifies the types and quantities of resources required for each work package or activity.   This, combined with the information contained in the project schedule of the duration estimates of each work package or activity (an output of process 6.4 Estimate Activity Durations), will be used to create the cost estimates during this process.

Risk Knowledge Area

  • Risk register–the risk register (an output of process 11.2 Identify Risks, and updated in every risk management planning process that follows it) contains information that can be used to estimate costs, especially when obtaining three-point estimates that include optimistic and pessimistic assumptions.

7.2.1.3  Enterprise Environmental Factors

  • Market conditions–these will determine the standard costs for resources that may be used on the project
  • Published commercial information–for any particular application area, there may be databases that contain standard human resource costs and standard costs for material and equipment that may be used on the project.

7.2.1.4 Organizational Process Assets

  • Historical information and lessons learned repository, especially from similar projects to the one being done at present
  • Cost estimating policies and templates (should be included in the Cost Management Plan)

With these inputs, we are ready to discuss the tools and techniques of this process.   Some of these are “generic” tools and techniques used in any planning process, such as expert judgment, decision making, and the Project Management Information System (the software program such as Microsoft Project).   However, there are some that are specific to the duration and cost estimating processes, such as

  • analogous estimating
  • parametric estimating
  • bottom-up estimating
  • three-point estimating
  • data analysis techniques such as alternatives analysis, reserve analysis, and cost of quality

All of these will be discussed in the following post.

6th Edition PMBOK® Guide–Process 7.1 Plan Cost Management: Outputs


This post covers the outputs of the Plan Cost Management process, namely the Cost Management Plan and what it contains.

7.1.3 Plan Cost Management:  Outputs

7.1.3.1 Cost Management Plan

There is only one output, the Cost Management Plan, which as explained in an earlier post, gives guidelines that help with all of the other cost management practices.   The PMBOK Guide simply lists them in no particular order, but I’m grouping them based on the process they are associated with.

7.2 Estimate Costs

  • Units of measure–this will be in dollars or the base currency of whatever country the project is being done in
  • Level of precision–how will the cost estimates be rounded up or down
  • Level of accuracy–what is the acceptable range, usually expressed in terms of plus or minus percentage, for determining realistic cost estimates.

7.3 Determine Budget

  • Organizational Procedures links–the Work Breakdown Structure is the framework which can be used to determine the overall budget based on estimates of the costs of individual work packages.

7.4 Control Costs

  • Rules of performance measurement–Earned Value Management or EVM is a tool used in monitoring the performance of a project, including whether it is ahead of, on, or behind schedule.   The rules of how EVM will be used on the project should be specified, usually using one of the two measures Schedule Performance Index (SPI) or Schedule Variance (SV).
  • Control thresholds–once a variance is detected, the threshold should be set (usually in terms of a percentage deviation from the baseline plan as expressed in the SPI) ,so that any amount of variation above that threshold will cause certain actions to be taken.
  • Reporting formats–when the work performance reports are sent to the stakeholders, the formats of those reports, which stakeholders receive them, and the frequency of those reports should be specified

Now let us turn to the next planning process, where we estimate the costs for each work package in the WBS.

6th Edition PMBOK® Guide–Process 7.1 Plan Cost Management: Tools and Techniques


Since this is the first planning process for the knowledge area, with an aim towards creating the Cost Management Plan, the tools and techniques used in this process are the “generic” ones that apply to any knowledge area planning process, namely expert judgmentdata analysis, and meetings.

Let’s discuss some of the specifics of these tools and techniques as they relate to the knowledge area of cost management.

7.1.2  Plan Cost Management:  Tools and Techniques

7.1.2.1  Expert Judgment

Who is going to assist your project team in creating the cost management plan?   Experts with specialized knowledge of:

  • Creating the budget on previous similar projects
  • Cost estimating and budgeting techniques that are used in the application area in general
  • Earned value management

7.1.2.2 Data Analysis

What kind of options will be considered for funding the project?   Will it be self-funding from the organization’s overall budget, funding with equity, or funding with debt?  Alternatives analysis will help decide which option will be best for the organization, as well as how to acquire project resources (should you use your own resources, purchase them, rent or lease them?).

7.1.2.3 Meetings

Meetings should be held by the project team with experts invited (see 7.1.2.1 above) to help the team use the data analysis techniques mentioned above (see 7.1.2.2 above) in order to help put together the cost management plan.

The details of the cost management plan will be covered in the next post.

6th Edition PMBOK® Guide–Process 7.1 Plan Cost Management: Inputs


This is the first process for the cost management knowledge area, and it follows the same pattern as the first planning process for ALL knowledge areas, namely, it is called “Plan X Management”, where “X” is the name of the knowledge area, and it has as its output the “X Management Plan” which outlines any guidelines or procedures for doing all of the other processes in that knowledge area.

So let’s start going over the inputs of this knowledge area.

7.1.1 Plan Cost Management:  Inputs

7.1.1.1 Project Charter

The project charter, the output of process 4.1 Develop Project Charter, may contain pre-approved financial resources from which the detailed project costs are developed, such as a certain budget within the organization.

7.1.1.2 Project Management Plan

The other knowledge area plans that may impact the creation of the cost management plan:

  • Schedule management plan–certain processes and controls may impact cost estimation and management.   For example, crashing a schedule to reduce the estimate of the duration of an activity usually has the impact of increasing the cost estimate for that activity.   This is because “crashing” means adding resources to get an activity done more quickly, and those additional resources will add to the cost of that activity.
  • Risk management plan–there are processes and controls that may impact cost estimation and management.   For example, 11.5 Plan Risk Responses may cause additional costs to the project which are justified by the reduction of risk to the project.   For example, if certain data is critical to a company, then in developing a new system to use that data, the additional cost of a “mirror server” may be incurred to always make sure the original data is never lost or destroyed.   The extra cost is justified because the negative impacts of losing that data would be catastrophic for the project.

7.1.1.3 Enterprise Environmental Factors

Among the factors listed in the PMBOK guide, the ones that are most pertinent are:

  • Organizational culture and structure can influence cost management.  For example, whether a project exists in a functional, matrix, or projectized organizational culture environment will have an effect on how decisions are made with regards to the costs of the project.
  • Market conditions will describe the costs of products, services, or results similar to the ones being proposed to be created by the project, and will therefore set a benchmark for their pricing.
  • PMIS (project management information system)-used as a tool to create the project budget, the software is considered an EEF by PMIS.   The data created by the organizational from previous projects using that software, however, are considered Organizational Process Assets (see below)
  • Published commercial information on resource costs provide standard costs for resources commonly used on the project.

7.1.1.4 Organizational Process Assets

  • An organization’s financial control procedures (what accounting codes are to be used when keeping track of expenses on projects, etc.)
  • Historical information and lessons learned repository, especially from projects which are similar to the one being proposed
  • Policies, procedures, and guidelines specifically for cost estimating and budgetin

These are the inputs to the process; the next post will cover the tools and technique  which are the “generic” ones that are used for any planning process for a knowledge area:  namely, expert judgment, data analysis, and meetings.

6th Edition PMBOK® Guide–Process 6.6 Control Schedule: Outputs


This process is the one where you monitor the progress of the project to see if there are any variances between the actual work done and the work that was supposed to be done according to the schedule.   If there are variances, then the output of the process will be change requests that will bring the work back on schedule.

6.6.3 Control Schedule:  Outputs

6.6.3.1 Work Performance Information

The work performance data on the work actual done in the last reporting period is the input to this process.   The process compares that work done to the work that was supposed to be done, and the result of this comparison is work performance information, such as a schedule performance index (SPI) or schedule variance (SV) measurement.

6.6.3.2 Schedule Forecasts

Earned value measurement can forecast the amount of time it will take to finish the project.   For example, let’s say you are halfway done with a project that should take 10 weeks.   If you have a schedule performance index of 0.9, that means your project is being worked at a 90% level of efficiency, which roughly speaking means that your project will take 10/0.9= 11.1 weeks to complete if you work at the same pace.   These schedule forecasts, as well as the work performance information, are inputs to the general integration process 4.6 Perform Integrated Change Control, which will turn them from work performance information that is useful for the project team to work performance reports which distill that information so that it is useful for stakeholders.

6.6.3.3 Change Requests

Every monitor and control process has as a possible output a change request, which can take the following forms:

  • Defect repair (for defects that have already occurred, but are just being detected now in the current reporting period)
  • Corrective action (for defects that have recently occurred in the last reporting period)
  • Prevention action (for defects which may occur in the future if current trends continue)
  • Changes in schedule management plan–rather than changing the work to fit the plan, if you discover that the plan was unrealistic to begin with, it may be necessary to change the plan.

6.6.3.4 Project Management Plan Updates

  • Schedule management plan–the schedule management plan may be updated if there is a change in the way the schedule is managed, discovered as a result of this process.
  • Schedule baseline–if change requests are approved, then the changes will be reflected in the schedule baseline; additional baselines such as cost and performance measurement may also be affected.

6.6.3.5 Project Document Updates

Integration Knowledge Area

  • Lessons learned register–if effective techniques for monitoring the schedule, or discovering the causes of variances, are discovered in doing this process, these lessons are added to the lessons learned register
  • Assumption log–if the cause of variance is discovered, this may change the assumptions in the assumptions log that affect the schedule

Schedule Knowledge Area

  • Basis of estimates–if this process uncovers any revision in any of the schedule estimates, this may need to be reflected in an update to this document
  • Schedule data–if there are modifications to the schedule recommended as a result of this process, the project schedule network diagrams may need to be changed.
  • Project schedule–any alterations in the schedule data, if plugged into the schedule model, may result in changes such as the forecast finish date of the project.

Resource Knowledge Area

  • If some of the techniques of this process such as resource optimization (resource leveling and resource smoothing) and schedule compression (crashing and fast-tracking) cause changes in the resource calendars, these are updated as a result of the process.

Risk Knowledge Area

  • Risk register–fast-tracking is a schedule compression technique which, if used as part of this process, may increase the risks of rework for the activity to which they are applied.   These risks need to be updated in the risk register.

The outputs then feed into the general monitoring and controlling process 4.6 Perform Integrated Change Control.   (All the separate knowledge area monitoring and controlling processes do so, by the way, not just the processes for the schedule knowledge area.)’

This concludes the posts for the schedule management knowledge area.   The next post will start the next knowledge area, that of cost management.