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Project Cost and Quality Management
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Project Cost and Quality Management
PCM 2 - Group 6
Study
1
Question
What is Project Cost Management?
Answer
The dimension of project management which aims to ensure that a project is completed within its approved budget.
2
Question
What are the key focuses of Project Cost Management?
Answer
Planning, estimating, budgeting, financing, funding, managing, and controlling costs.
3
Question
What does Project Cost Management ensure?
Answer
That the project is delivered on time, within scope, and within the financial constraints set by stakeholders.
4
Question
Cost Control
Answer
Managing and regulating costs through taking corrective action.
5
Question
Quality Control
Answer
Monitors outputs to identify and correct defects.
6
Question
Quality Assurance
Answer
Ensures processes are followed to meet quality standards.
7
Question
Cost Estimation
Answer
Projection of costs
8
Question
Cost Budgeting
Answer
Projects financial boundaries based on the initial estimate
9
Question
What is the role of project cost management?
Answer
Ensuring projects are completed within approved budgets by providing accurate cost estimates, monitoring and controlling costs, managing scope changes, contingency planning, managing resources, making data-driven decisions, and mitigating risks.
10
Question
How does cost management impact time and scope?
Answer
Effective cost management balances cost and schedule. Cost overruns can cause delays. Scope defines the work needed, and effective cost management ensures work is completed within budget without compromising quality.
11
Question
How does cost management impact quality and risk management?
Answer
Effective budget management impacts the quality of deliverables. Effective cost management includes risk identification, mitigation strategies, and opportunities to reduce costs without compromising objectives.
12
Question
What are the financial implications of poor cost management?
Answer
Cost overruns, reduced quality, project delays, negative impact on profitability, inability to secure funding, inefficient resource utilization, scope creep and uncontrolled changes, and increased financial risk.
13
Question
What are the key components of project cost management?
Answer
Cost estimation, budgeting, cost control, and monitoring.
14
Question
Explain Cost Estimation in Project Cost Management
Answer
Accurately determine the cost to complete works planned.
15
Question
Explain Cost Control in Project Cost Management
Answer
Monitor and control actual expenditure against planned expenditure in conjunction with project plan and project schedule through the help of WBS and PERT-CPM.
16
Question
What is component cost budgeting?
Answer
Projection of costs for components of a construction project, refined by real-world considerations.
17
Question
What is project cost estimation?
Answer
Setting financial boundaries for a project based on initial estimates, historical data, and market research.
18
Question
What is cost control monitoring?
Answer
Managing and regulating costs through corrective actions when budget deviations occur.
19
Question
What is component cost control monitoring?
Answer
Tracking and assessing project costs against the planned budget, involving continuous observation of expenditures.
20
Question
Name four techniques for cost estimation.
Answer
Analogous Estimating, Parametric Estimating, Bottom-Up Estimating, Expert Judgement
21
Question
Name two techniques for cost budgeting.
Answer
Funding Limit Reconciliation, Reserve Analysis
22
Question
Name three techniques for cost control.
Answer
Earned Value Management (EVM), Variance Analysis, To-Complete Performance Index (TCPI)
23
Question
Name four softwares for cost management.
Answer
Primavera P6, Microsoft Project, Procore, CostX
24
Question
What is a Cost Breakdown Structure (CBS)?
Answer
A hierarchical map of the costs in your project.
25
Question
What were some key issues with the Sydney Opera House project?
Answer
Incomplete plans until 1966, roof construction issues solved in 1961, no finalized design, no defined project budget, and no management and accounting expectations.
26
Question
What was the final cost of the Sydney Opera House compared to the original budget?
Answer
The final cost was $102 million, far exceeding the original budget of $7 million (1400% over budget).
27
Question
What is Project Quality Management?
Answer
A process that considers how a project should proceed to achieve the desired quality for the project's deliverables.
28
Question
How is quality defined in project management?
Answer
Quality can be considered something that measures up to or exceeds the generally accepted standard for deliverables in its category.
29
Question
What are the three elements of Project Quality Management?
Answer
Quality Planning, Quality Control, and Quality Assurance.
30
Question
What is the focus of Quality Assurance?
Answer
Focuses on preventing issues before they occur by following agreed processes.