1. By : Ahmed Zein
MBA E-Business
Eng_ahmedzein@yahoo.com

2. 1. Cost Estimation .
2. Determine Budget .
3. Control Costs .

3. Outputs :
Inputs : Techniques 1. Activity cost
1. Scope baseline 1. Expert Judgment estimates
(scope 2. Analogous 2. Basis of
statement+ wbs) estimation estimation
2. Schedule 3. Vendor bid 3. project
analysis document
3.HR plan update
4.
4. Risk register
5,6,7,8,9
5. E E F
6. O P A
1000 $$
50000 $$
1500$
3000 $$
2000 $$

4. Technique: Outputs :
Inputs : 1. Cost 1. Cost baseline
1. Activity cost aggregation 2. Project funding
estimates 2. Reserve analysis requirements
2. Basis of 3. Expert 3. Project
estimation . judgment document
3. Scope baseline 4. Historical Update .
4. schedule information
5. Calendar 5. Funding limit
6. Contracts reconciliation
7. OPA

6. Outputs :
Inputs : Technique: 1. Work performance
measurements
1. Earned Value 2. Budget forecasts .
1. Project Management
Management plan 3. Change request .
2.Forecasting
2. Project funding 4. Project plan update
requirements . 3. Performance
review . 5. Project document
3. Work update
performance 4,5,6
6. Organizational
information
process assets updates
4. OPA

7. Primary Data Points
Budget At Completion (BAC)
PV = BAC * % of planned work.
EV = BAC * % of Actual work
AC is the actual cost

8. Problem: A project has a budget of £10M and schedule for 10 months. It is
assumed that the total budget will be spent equally each month until the 10th
month is reached. After 2 months the project manager finds that only 5% of
the work is finished and a total of £1M spent.
PV = £2M
EV = £10M * 0.05 = £0.5M
AV = £1M
CV = EV-AC = 0.5-1 = -0.5M
SV = EV-PV = 0.5-2 = -1.5 months
CPI = EV/AC = 0.5/1 = 0.5
SPI = EV/PV = 0.5/2 = 0.25
EAC = BAC/CPI = 10/0.5 = £20M
ETC = (BAC-EV) / CPI = (10-0.5)/0.5 = £19M
TTC= (BAC-EV) / SPI= (10-0.5)/0.25 = 38 Months
This project will take TOTAL £20M (19+1) and 40 (38+2) Months to complete.