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- Control Costs process is not only useful in monitoring and reporting performance on project cost objective but also ensuring other project-related objectives, covered in the PM plan, mainly scope and time, are not affected.
- As part of controlling process, Approved Changes can result in updates to PM plan and other project documents, owing to new baselines the project needs to track.
- This process also deals with analyzing current trend and doing a forecast based on current status and factoring in any future impacts.
- Another main objective of the control costs process is to ensure that the periodic project funding requirements, as identified in the determine budget process, are sourced at the right points in the project lifecycle and the funds are not over-used.
- Any Changes, identified as part of monitoring process, is presented before change control board for review.
- Reserve Analysis is done to ensure that the cost baseline is under control, level of contingency reserves used and analyzing if management reserve is needed for any unknown-unknowns.


- Project Management Plan: The main input to this process to check different performance measurement baselines and their current health. Also contains the Cost Management Plan holding the process to report cost performance.
- Work Performance Data: The input as received from the project team used to validate the actuals against the baselines and to report project performance.
- Organizational Process Assets: Holds lessons learnt and cost control processes and procedures followed in prior situations.
- Project Funding Requirements: Main input to check what the periodic funding requirements or mandates are and they are being followed and there is no overrun or breach since this is a vital criteria or might be enforced by agreement and so can have an impact on project cost performance.

Tools & Techniques

- Earned Value Management: Project performance is measured using the performance measurement baseline. Performance measurement baseline includes:
> Scope Baseline
> Schedule Baseline
> Cost Baseline
- EVM develops and monitors three key dimensions for each work package and control account:
> Planned Value (PV)
> Earned Value (EV)
> Actual Cost (AC)
- Schedule Variance:
- Cost Variance
Negative CV is often difficult for the project to recover.
- Schedule Performance Indicator
An SPI greater than 1.0 indicates that more work was completed than was planned.
- Cost Performance Indicator
>CPI = EV / AC (if less than 1 then, cost overrun)
- Forecasting: Based on the current work performance data, what will be the future performance. Estimate at Completion (EAC) is the indicator to provide this forecast.
- To-Complete Performance Index (TCPI): An index used to represent if the remaining resources are enough to complete the project as per the goal. TCPI is calculated using Budget At Completion (BAC) and EAC.
- Project Management Software: Used to calculate Variances and trends based on project work performance data stored.
- Reserve Analysis: Necessary to understand the current reserve and need for utilization of any contingency reserve or management reserve based on current trend.
- Performance Reviews: Analysis of current work performance data and forecasting future performance is necessary to update different stakeholders.


- Work Performance Information: The various indexes and variances are summarized at the work package or control account-level to communicate to the stakeholders.
- Change Requests: Any corrective or preventive actions are documented to be presented before the change control board.
- PM Plan Updates: As part of control process, baselines might be updated.
- Project Document Updates: While baselines get updated, associated documents like schedule or risk register can also get updated.
- Cost Forecasts: EAC details are documented and sent to stakeholders to provide comfort regarding the health of the project.
- Organizational Process Assets Updates: Lessons learnt, other process documentation.

Match the Following

1. VAC – a. Behind Schedule
2. EAC – b. Over Planned Cost
3. CPI < 1 – c. BAC – EAC
4. SPI < 1 – d. BAC/CPI
5. TCPI – e. Under Planned Cost
6. CV > 0 – f. (BAC – EV)/(BAC – AC)

Match the Following (Answers)

1. VAC – c. BAC – EAC
2. EAC – d. BAC/CPI
3. CPI < 1 – b. Over Planned Cost
4. SPI < 1 – a. Behind Schedule
5. TCPI – f. (BAC – EV)/(BAC – AC)
6. CV > 0 – e. Under Planned Cost