Quick Question about Inputs and Outputs in Cost Management.

Hey Guys,

First time posting on here, and on any forum actually, so here goes....

two things that have been boggling me:

1) Why is the "Budget" not an out put of the determine budget process. Cost baseline is but shouldnt budget which also includes the reserves be an output as well?

2) Why is the Cost baseline not used as an input for Control Costs? wouldnt you need it to do your variance analysis?

thanks

Waël

 

Hi WM_PMP,

I am not an expert, just trying to add my view point.

1) Why is the "Budget" not an out put of the determine budget process. Cost baseline is but shouldnt budget which also includes the reserves be an output as well?

Budget is static concept. Cost baseline is time- phased version of project budget(PMBOK pg.212). Cost estimates are aggregated by work packages in accordance with WBS. The work package cost estimates are then aggregated for the higher component of work levels of the WBS such as control account and ultimately for entire project. Since the cost estimates that make up the cost cost baseline are directly tied to the schedule activities, this enables a time phased view of the cost baseline. and management reserves are added to  to the cost baseline to produce the project budget.

 

2.Why is the Cost baseline not used as an input for Control Costs? wouldnt you need it to do your variance analysis?

Cost baseline is included in as input for control costs. The first input of control cost is Project management plan and  this includes cost baseline and and cost management plan.

Same is with  control scope and control schedule. The project management plan includes scope baseline and schedule baseline.

Hope this expaination might help.

Thanks,

Smart_Charming 

 

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