Chapter 1: Controlling Cost and Using Earned Value
Measure project performance, identify and quantify variances, and determine appropriate preventive and corrective actions. Communicate status to stakeholders per the communications management plan.
Ensure baseline integrity by updating the project management plan in response to approved changes and communicating those approved changes to the team.
Like the Control Scope and Control Schedule processes, the exam objectives are concerned with measuring performance, correcting performance, and communicating that information. It also entails implementing only approved change requests.
Estimating, developing, and controlling the project budget is one of the highest-visibility activities that you do as a project manager. All the higher-up people want to know how you’re doing according to budget. Because people often estimate as if everything will work perfectly, staying within the budget can be quite challenging.
When monitoring and controlling the budget, you need to make sure to compare the baseline cost for a deliverable or element of work with the actual cost. Don’t fall into the trap of comparing how much you planned to spend to how much you have spent without taking into consideration what you got for what you spent! ...