Project Time Management: Activity or Task

Rolling wave planning is a progressive planning approach where near-term work is detailed, and distant work is kept at a higher Work Breakdown Structure (WBS) level. It allows for flexibility in adapting to changes and uncertainties in project scope and requirements.

An activity list should include the activity name, an activity identifier or number, and a brief description of the activity.

Activity attributes provide more information about each activity, such as predecessors, successors, logical relationships, leads and lags, resource requirements, constraints, imposed dates, and assumptions related to the activity.

<p>A milestone is a significant event in a project that normally has no duration. It serves as a tool for setting schedule goals and monitoring progress.</p> Signup and view all the answers

<p>The inputs for sequencing activities include the Project Scope Statement, while the tools &amp; techniques include Activity List and Precedence Diagramming Method (PDM) and Activity Attributes.</p> Signup and view all the answers

<p>Opportunity cost refers to the benefits that could have been received by choosing an alternative action. An example related to project cost management could be the decision to allocate resources to one project, resulting in the potential benefits foregone from not allocating those resources to another project with higher returns.</p> Signup and view all the answers

<p>Direct costs are expenses that can be directly attributed to a specific project or product, such as the costs of materials, labor, and equipment in construction. Indirect costs, on the other hand, are not directly traceable to a specific cost object and are typically incurred for multiple projects or activities.</p> Signup and view all the answers

<p>Sunk costs are costs that have already been incurred and cannot be recovered. They are not considered in decision-making processes because they are irrelevant to future costs and benefits. Project decisions should be based on future costs and potential benefits, not past expenses.</p> Signup and view all the answers

<p>Cost budgeting involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. It helps in tracking and controlling costs at a more granular level within the project.</p> Signup and view all the answers

<p>Variable costs are expenses that change with activity or production volume. In project cost management, understanding and monitoring variable costs is crucial for assessing the impact of changes in project scope or scale. An example of a variable cost in a project context could be the cost of goods sold, which fluctuates based on the quantity of products manufactured or sold.</p> Signup and view all the answers

<p>Fixed costs are costs that remain constant regardless of activity or production volume, such as rent or salaries. Variable costs are costs that change with activity or production volume, such as the costs of goods sold or phone calls. An example of a fixed cost in a project setting could be the monthly rent for office space, while an example of a variable cost could be the cost of materials that increases as the project progresses.</p> Signup and view all the answers

<p>The key processes involved in project cost management are: 1- Plan Cost Management: This process involves defining how the project costs will be estimated, budgeted, managed, and controlled. 2- Estimate Costs: This process involves developing an approximation or estimate of the costs of the resources needed to complete a project. 3- Determine Budget: This process involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. 4- Control Costs: This process involves controlling changes to the project budget to ensure that the project remains on track financially.</p> Signup and view all the answers

<p>Cost estimating is significant in project cost management as it provides an approximation of the costs of the resources needed to complete a project. It contributes to project success by helping in the planning and decision-making process, enabling project managers to allocate resources effectively, and providing a basis for establishing the project budget and measuring performance.</p> Signup and view all the answers

<p>Opportunity cost is the benefits that could have been received by taking an alternative action. In project cost management, it is relevant in decision-making processes, as it helps in evaluating the value of choosing one project or resource allocation over another. For example, if a company decides to invest in Project A, the opportunity cost could be the potential benefits that could have been gained by investing in Project B instead.</p> Signup and view all the answers

<p>Indirect costs are costs that are not directly accountable to a cost object, such as a particular project or product. They differ from direct costs in that direct costs are directly attributable to the cost object, while indirect costs are not directly traceable to a specific project or product. Indirect costs may include items such as administrative expenses or overhead costs.</p> Signup and view all the answers