PMP 2021 Update – Planning and Managing the Project Budget

Overview/Description Project management requires some financial savvy. Project cost management involves cost estimates, vendor bid analysis, and determining realistic budgets and then keeping them on track. While terms like cost aggregation and baseline, reserve analysis, and earned value management (EVM) are initially daunting, with some background and work, these tasks and tools can be understood and mastered.

In this course, you’ll learn to the basics of creating budgets and estimating and controlling costs. You’ll explore cost forecasts, estimating using methods like estimate to complete (ETC), estimate at completion (EAC), cost performance index, and bottom-up and analogous estimating. This course will assist learners in preparing for PMI’s PMP Exam (2021 Update).

Expected Duration (hours): 1.2 Lesson Objectives

· discover the key concepts covered in this course

· distinguish between the tools and techniques you can use to estimate project costs

· describe how to use the bottom-up estimating technique to estimate project costs

· recognize the tools and techniques you can use to determine your project budget

· recognize the tools and techniques you can use to control project costs

· match earned value management values with their formulas

· recognize the situations in which different estimate at completion (EAC) formulas are used

· calculate the to-complete performance index (TCPI) for a project given earned value management (EVM) figures

· calculate the planned value and earned value, given the budget, percent of time passed, and percent of work completed

· calculate the schedule variance and schedule performance index, given the earned value and planned value

· calculate the cost variance and cost performance index, given the earned value and actual costs

· determine project performance, given a set of raw data points

· utilize work performance data to determine project performance

· determine the estimate at completion, using the formulas for scenarios 1 and 2

· recognize how the choice of EAC formula depends on the project situation

· Knowledge Check: Assessing Your Project Planning and Management Skills

Course Number: bs_apj30_a08_enus

CPE Credit: 2.5