Cost Mgmt

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KaurP
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Joined: Wed Apr 04, 2018 4:08 am

Cost Mgmt

Postby KaurP Mon Aug 06, 2018 11:12 am

Hi Manish,

I need your assistance in reference to this question-

_______ are not necessarily used to establish the cost baseline of a project.

o Schedule activity or work package cost estimates
o The work breakdown structure and WBS dictionary
o The project schedule and resource calendars.
o The risk breakdown structure and the risk register. Correct Answer

This question is from one of the only mock tests with no explanation.

We do perform Risk Mgmt activities (look for risks associated with activities) during cost estimate, thats how we add up contingency reveres in the estimates. Isn't it?

Can you please explain this answer why it says RBS and risk register are NOT necessarily used to establish the cost baseline of a project.


One more thing I am curios to know Estimate Resource duration process has been moved from Project Schedule management to Project Resource management in PMBOK6 edition. However if I check the sequence of activities in planning process group (refer to Rita chart as well) we see that 'Estimate Resource Requirement-type and quantity (Estimate Resource Duration process) is still performed before 'Estimate Activity Duration and Cost' process. With this change, only the Knowledge Area in which it falls in have been changed, its ITTO's and the way it was being performed remains the same. Isn't it?
Or Is there any other difference which the moving of this process made?

Thanks!
manishpn
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Posts: 2509
Joined: Sat Jan 04, 2014 3:55 pm

Re: Cost Mgmt

Postby manishpn Tue Aug 07, 2018 6:23 pm

KaurP wrote:Hi Manish,

I need your assistance in reference to this question-

_______ are not necessarily used to establish the cost baseline of a project.

o Schedule activity or work package cost estimates
o The work breakdown structure and WBS dictionary
o The project schedule and resource calendars.
o The risk breakdown structure and the risk register. Correct Answer

This question is from one of the only mock tests with no explanation.

We do perform Risk Mgmt activities (look for risks associated with activities) during cost estimate, thats how we add up contingency reveres in the estimates. Isn't it?

Can you please explain this answer why it says RBS and risk register are NOT necessarily used to establish the cost baseline of a project.


Not sure why are you referring to such Mocks, Risks should always be considered while finalizing project cost baselines.

One more thing I am curios to know Estimate Resource duration process has been moved from Project Schedule management to Project Resource management in PMBOK6 edition. However if I check the sequence of activities in planning process group (refer to Rita chart as well) we see that 'Estimate Resource Requirement-type and quantity (Estimate Resource Duration process) is still performed before 'Estimate Activity Duration and Cost' process. With this change, only the Knowledge Area in which it falls in have been changed, its ITTO's and the way it was being performed remains the same. Isn't it?
Or Is there any other difference which the moving of this process made?

Thanks!
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
manishpn
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Expert
Posts: 2509
Joined: Sat Jan 04, 2014 3:55 pm

Re: Cost Mgmt

Postby manishpn Tue Aug 07, 2018 6:31 pm

manishpn wrote:
KaurP wrote:Hi Manish,

I need your assistance in reference to this question-

_______ are not necessarily used to establish the cost baseline of a project.

o Schedule activity or work package cost estimates
o The work breakdown structure and WBS dictionary
o The project schedule and resource calendars.
o The risk breakdown structure and the risk register. Correct Answer

This question is from one of the only mock tests with no explanation.

We do perform Risk Mgmt activities (look for risks associated with activities) during cost estimate, thats how we add up contingency reveres in the estimates. Isn't it?

Can you please explain this answer why it says RBS and risk register are NOT necessarily used to establish the cost baseline of a project.


Not sure why are you referring to such Mocks, Risks should always be considered while finalizing project cost baselines.

One more thing I am curios to know Estimate Resource duration process has been moved from Project Schedule management to Project Resource management in PMBOK6 edition. However if I check the sequence of activities in planning process group (refer to Rita chart as well) we see that 'Estimate Resource Requirement-type and quantity (Estimate Resource Duration process) is still performed before 'Estimate Activity Duration and Cost' process. With this change, only the Knowledge Area in which it falls in have been changed, its ITTO's and the way it was being performed remains the same. Isn't it?
Or Is there any other difference which the moving of this process made?
the rationale behind the change in KA name from Human resources to resources was that Project needs to plan for all resources and not just human resources,
in general I agree with your observation, its a change in KA , so process has a new home and with that, some minor changes to ITTO as compared to PMBOK5, but PM still needs to know the resources needed in project to be able to address availability/dependencies of such resources to finalize schedule and cost of acquiring resources.

Thanks!
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/

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