# Definition 定义
# Cost 成本
…the price paid to acquire, produce, accomplish, or maintain anything
# Profit 利润
…a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something
# Direct Cost 直接成本
A direct cost is a price that can be directly tied to the production of specific goods or services.
A direct cost can be traced to the cost object, which can be a service, product, or department.
Direct and indirect costs are the two major types of expenses or costs that companies can incur.
Direct costs are often variable costs, meaning they fluctuate with production levels such as inventory.
# Indirect Costs 间接成本
Indirect costs are costs used by multiple activities, and which cannot therefore be assigned to specific cost objects.
Examples of cost objects are products, services, geographical regions, distribution channels, and customers.
Instead, indirect costs are needed to operate the business as a whole.
It is useful to identify indirect costs, so that they can be excluded from short-term pricing decisions where management wants to set prices just above the variable costs of products.
# Capital Expense 资本支出
“A capital expenditure is an amount spent to acquire or significantly improve the capacity or capabilities of a long-term asset such as equipment or buildings. … The asset's cost (except for the cost of land) will then be (depreciated) over the ‘useful life’ of the asset. “
…… 资产的成本（土地成本除外）将在资产的 “使用寿命” 内折旧（折旧）。
Tax regulations determine the “useful life”.
# Revenue Expenditure 收入支出
A revenue expenditure is an amount that is spent for an expense that will be matched immediately with the revenues reported on the current period's income statement.
…. and deducted immediately, for full value on taxes. Contrast to Capital Expense.
Capital Expense vs. Revenue expenditure
Always have your knowledgeable accountant help you with this as people can go to jail over stating a capital expense incorrectly as a revenue expenditure.
# Project cost management 项目成本管理
# includes the processes involved in… 涉及的流程
….Planning, estimating, budgeting, financing, funding, managing, and controlling costs to that the project can be completed within the approved budget.
# is primarily concerned with… 主要关注
“the cost of the resources needed to compete project activities.”
# Considerations include… 考虑因素包括
Maintaining & supporting the product or service
# In Agile… 在敏捷中
Detail estimates, when needed, are typically created just in time (at the last minute.)
# Plan cost management 计划成本管理
p. 235 - 236
- What it is 它是什么
- the “definition (as to) how project costs will be estimated, budgeted, monitored, and controlled.
- The Benefit is 好处是
- guidance as to how cost will be managed throughout the project.
- “The project charter provides the pre-approved financial resources from which the detailed costs are developed.”
# Factors 因素
- Organizational culture
- Market conditions
- Currency exchange rates
- Productivity differences in different parts of the world
# Expert judgment in cost 成本方面的专家判断
- Previous or similar projects
- Information in the industry, discipline, and application area
- Cost estimating and budgeting
- Earned value management
# Data Analysis 数据分析
# funding options 资金选择
- Funding with equity
- Funding with debt
- Borrow $ from the bank
- Issue bonds
- Borrow $ from the bank
# ways to acquire project resources 获取项目资源的方式
- Making 制作
- Purchasing 购买
- Renting/leasing 出租 / 租赁
# Accuracy 准确性
Acceptable range of estimates (e.g. +/- 10%)
可接受的估算范围（例如 +/- 10％）
# Cost estimate 成本估算
# defined 定义
“A quantitative assessment of the likely costs for resources required to complete the activity. It is a prediction that is based on the information that is available at a given point in time.”
# should consider
Generally expressed in currency amount (USD, rupees, yen, euros, etc.)
- Typically improve as the project continues (-25% to +75% => -5% to +10%)
通常随着项目的进行而改善（-25％至 + 75％=> -5％至 + 10％）
- The expectation of the level of accuracy will tend to become more exacting
# types include … 类型包括……
- Labor 劳动
- Materials 材料
- Equipment 设备
- Services 服务
- Facilities 设施
- Inflation allowance 通货膨胀津贴
- Cost of financing 融资成本
- Contingency costs 应急费用
# Some inputs to a cost estimate 成本估算的一些输入
- Project scope document
- WBS dictionary
- Risk register
# Types of estimates 估算类型
- Analogous estimating (just like something else)
- Parametric estimating (using statistical software tools)
- Bottom-up estimating (totaling the estimates from the work package or activities)
# Three Point Estimating 三点估计
Most likely “cM”
# Contingency Reserves 应急准备金
(p. 702)… identified risks with active responses identified.
(p. 710) management reserves are for work that is unforeseen, but within the scope of the project.
# Cost of Quality (huge) 质量成本（巨大）
- Investment to achieve conformance
- Cost of nonconformance (clean up etc.)
- Cost of more problems later by making more defective products now.
# Basis of Estimates – supporting detail 估计依据–辅助说明
- Basis of the estimates
- Known constraints
- Risks included in estimates
- Accuracy range
- General confidence level
# Determine Budget 确定预算
- What it is 这是什么
- The process of aggregating the estimated costs of individual activities or work packages to establish and authorized cost baseline.
- The Benefit is 好处是
- determines the cost baseline against which project performance can be monitored and controlled.
# Control Costs
- What it is 这是什么
- The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.
- The Benefit is 好处是
- the cost baseline is maintained throughout the project.
# Project cost controls include 项目成本控制包括
- Influencing the factors that create changes to the authorized cost baseline
- Ensuring that all change requests are acted on in a timely manner
- Managing actual changes as they occur
- Ensuring budget for given time period is not exceeded.
- Preventing unapproved changes
- Preventing people not on your project from charging to your project
- Bringing cost overruns back within tolerance levels.
# Earned Value Management
# EVM General Ideas
- Planned Value (PV) 计划值
- is the authorized budget assigned to the project for an activity. Same as Budget at Completion (BAC)
- Earned Value (EV) 挣值
- is a measure of work performed expressed in terms of the budget authorized for that work. This is the actual completed work.
- Actual Cost (AC) 实际成本
- is the realized cost incurred for the work performed on an activity during a specific time period.
# The Plan
We have been contracted to fix storm damage, on a small part of the great wall of China, in 6 days. The plan is:
- Use 600 bricks
用 600 块砖
- 100 bricks/day
100 块 / 天
- Budgeted cost per brick = $2.90
每块砖的预算成本 = 2.90 美元
- Total budget $1,740 (this is the product of 600 * 1,740（这是 600 * $ 2.90 的乘积）
Comment: PV vs. BAC
“Total planned value (PV) for the project is also known as budget at completion (BAC).” (PMBOK p. 261 6th ed.)
# Assume after day 1…
- 70 bricks were laid
砌了 70 块砖
- Actual cost to date is $350
迄今为止的实际成本是 350 美元
Earned Value (EV) = 70 bricks * $2.90 = $203.00
挣值（EV）= 70 砖 * $ 2.90 = $ 203.00
Planned Value (PV)= 100 bricks per day @ $2.90= 100 * $2.90=$290.00
计划价值（PV）= 每天 100 块砖 @ $ 2.90 = 100 * $ 2.90 = $ 290.00
Actual cost (AC) = $350 (given)
实际费用（AC）= $ 350（给定）
# Variances 差异
Cost variance (CV) = EV – AC = $203 - $350 = -$147
成本差异（CV）= EV – AC = $ 203-$ 350 =-$ 147
Schedule variance (SV)= EV - PV = $203 - $290 = -$87
进度差异（SV）= EV - PV = $ 203-$ 290 =-$87
So, after day 1 we are behind $147 on cost (negative), and behind $87 on schedule (negative). This is bad news on both areas.
因此，在第 1 天之后，我们的费用落后了 147 美元（负值），而时间表则落后了 87 美元（负值）。这对两个方面都是坏消息。
Per PMBOK CV = Budget deficit or surplus at a given point
每个 PMBOK CV = 给定点的预算赤字或盈余
SV = Amount of ahead or behind vs. planned delivery date.
SV = 提前量或滞后量与计划的交付日期之间的差额。
# Performance Indexes… 绩效指标…
- CPI = EV/AC => 203/350 => .58
- SPI = EV/PV => 203/290 => .7
Cost performance index (CPI)= A measure of the cost efficiency of budgeted resources (CPI <1 is bad)
成本绩效指数（CPI）= 预算资源成本效率的度量（CPI <1 不好）
Schedule performance index (SPI)= a measure of schedule efficiency (SPI < 1 = bad)
进度表性能指数（SPI）= 进度表效率的度量标准（SPI <1 = 不良）
# Summary EVM
- Actual cost = cost spent to date (given)
实际费用 = 迄今为止已花费的费用（已给定）
- PV = Budget at Completion (BAC) = The original budget for the entire effort (given)
PV = 完成预算（BAC）= 整个工作的原始预算（已给定）
- Earned value = EV = Actual units of work completed * (cost per unit)
挣值 = EV = 已完成的实际工作量 *（单位成本）
- EV continued “actual units of work completed,” and cost-per-unit are given in the problem
EV 继续提供 “已完成的实际工作单位” 和问题中的单位成本
- EV = Measure of work performed expressed in terms of budget authorized for that work
EV = 用已授权工作预算表示的已完成工作量度
- Planned value = PV = Planned units of work for an activity * (cost/unit)
计划值 = PV = 活动的计划工作单位 *（成本 / 单位）
- PV= How much work should be completed as of today.
PV = 截至今天应完成多少工作。
- Cost Variance (CV)= EV – AC (negative = bad)
成本差异（CV）= EV – AC（负 = 差）
- CV = Budget deficit or surplus at a given point
CV = 给定点的预算赤字或盈余
- Schedule Variance (SV) = EV – PV (negative = bad)
排期差异（SV）= EV – PV（负 = 差）
- SV = A measure of schedule performance
SV = 进度绩效的量度
- Cost Performance Index (CPI) = EV/AC (< 1 = bad)
成本效益指数（CPI）= EV / AC（<1 = 差）
- CPI = A measure of the cost efficiency of budgeted resources
CPI = 预算资源成本效率的一种度量
- Schedule Performance Index (SPI) = EV/PV (< 1 = bad)
进度绩效指数（SPI）= EV / PV（<1 = 不良）
- SPI = a measure of schedule efficiency
SPI = 进度效率的量度
Present Value Video 现值视频
Net Present Value Video (NPV) 净现值视频