Three levels of cost planning, baseline versus forecast dates, and planning for people and materials.
Contents
Planning establishes the baseline against which execution is measured. Without it, an actual figure cannot be judged high or low.
Three levels of cost planning
Planning methods
Method
Granularity
Precision
When
Structure planning
Total per WBS element
Coarse
Concept stage, rough estimates
Detailed planning
WBS element by cost element by period
Medium
Execution planning
Network costing
Derived from activities
Fine
After detailed design
Dates
Three sets of dates
Kind
Meaning
Basic dates
The original plan; the baseline
Forecast dates
The current expectation, updated as work proceeds
Actual dates
When work actually started and finished
Material planning
How material is procured
Method
Content
From stock
Consume ordinary inventory
Project stock
Procured for the project and reserved to it
Direct procurement
Ordered straight to the project, bypassing stock
Third-party
Shipped from vendor to customer
Check your understanding
Test what you just read.
Quiz 1
Which scheduling method calculates the start date backward from the end date?
Quiz 2
Project cost plans can be distributed across fiscal years and periods.
Quiz 3
Which is NOT an element of project planning?
Quiz 4
Which statement correctly describes forward scheduling?
Quiz 5
Overall Planning is a method for entering total costs at the WBS element level in one step.
Quiz 6
Arrange the typical project planning steps in order.
Click items in the correct order
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