5th Edition PMBOK Guide–Chapter 7: Outputs of Control Costs process


1.  Introduction When all of the tools & techniques of process 7.4 Control Costs are applied, then the outputs are then used for several purposes: a) to communicate information about the performance of the project to the project team and relevant stakeholders, b)  to recommend changes to the project if the performance of the project is […]

5th Edition PMBOK Guide–Chapter 7: Reserve Analysis


1.  Introduction The last tool & technique listed for process 7.4 Control Costs is Reserve Analysis.   Why is this used as a technique for monitoring and controlling costs?   This post will discuss this issue. 2.  Contingency reserve and management reserves Risks that are identified and put in the risk register should have risk responses prepared.   The […]

5th Edition PMBOK® Guide–Chapter 7: Performance Reviews


1.  Introduction In previous posts, we have talked about earned value management, forecasting, and the to-complete performance index or TCPI.   These can show the variances in the present, and the variances that will exist by the time the project is finished if the cost and/or schedule performance continue on in the same way that […]

5th Edition PMBOK Guide–Chapter 7: Earned Value Management (part 4)


1.  Introduction The last formula to be discussed is that relating to the 3rd technique listed for process 7.4 Control Costs, namely, the To-Complete Performance Index or TCPI. What does index do for you?   Well, let’s say you are driving downtown and your GPS system tells you it will take 30 minutes to get […]

5th Edition PMBOK® Guide—Earned Value Management (part 3)


  1.  Introduction In the previous posts, I covered the basic formulas having to do with the three quantities of Planned Value (PV), Earned Value (EV), and Actual Cost (AC), and Budget at Completion (BAC).  Then I covered the variances Cost Variance (CV), Schedule Variance (SV), and Variance at Completion (VAC), as well as the […]

5th Edition PMBOK® Guide Chapter 7: Earned Value Management (part 2)


The most powerful of the tool & techniques of process 7.4 Control Costs is Earned Value Management or EVM. The whole point of earned value management is to find out how the project is performing as compared to the cost and schedule performance baselines. The last post discussed the quantities PV, EV, AC, which are […]

5th Edition PMBOK® Guide—Chapter 7: Earned Value Management (Part 1)


1. Introduction Earned Value Management is the first technique listed in the 5th Edition PMBOK® Guide for the only time management knowledge area process in the Monitoring & Controlling Process Group, 7.4 Control Costs. It is also the most powerful in the extent of its use and implications for the proper management of a project. […]

5th Edition PMBOK® Guide—Chapter 7: Process 7.4 Control Costs


1. Introduction The three of the four processes devoted to cost management are in the Planning Process Group. The fourth process, 7.4 Control Costs, is in the Monitoring & Controlling Process Group. The performance baseline for costs, the cost baseline, which was determined in the last process, 7.3 Determine Budget, is what the performance of […]

5th Edition PMBOK® GUIDE—Chapter 7: Contingency Reserves and Management Reserves


1. Contingency Reserves and Management Reserves Every project faces risks that some event may occur which may impact the project’s schedule. That is why it is necessary to list the known or predictable risks before the start of a project and list them in the risk register. The next step in dealing with the risks […]

5th Edition PMBOK® Guide—Chapter 7: Process 7.3 Determine Budget


After all the estimation done in process 7.2, it is now time to determine the budget, and that’s what this process does. The purpose of this post is to give a general overview of the inputs, tools & techniques, and outputs associated with this process. 1. Inputs Obviously the most important inputs to the process […]