{"id":300,"date":"2022-07-25T13:24:13","date_gmt":"2022-07-25T13:24:13","guid":{"rendered":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/chapter\/9-8-key-takeaways\/"},"modified":"2024-12-29T00:02:06","modified_gmt":"2024-12-29T00:02:06","slug":"9-8-key-takeaways","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/chapter\/9-8-key-takeaways\/","title":{"rendered":"9.8 Key Takeaways"},"content":{"raw":"<div class=\"textbox textbox--key-takeaways\"><header class=\"textbox__header\">\r\n<p class=\"textbox__title\">Key Takeaways<\/p>\r\n\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n<ul>\r\n \t<li>Allocation of resources allows the project manager to determine the overall budget, most of which is spent on resources.<\/li>\r\n \t<li>Three types of project costs are direct costs, direct overhead costs, and general administrative costs.<\/li>\r\n \t<li>The project cost management plan is one of the sub-plans of our overall project plan, and it provides guidelines to project managers on how to estimate, budget, manage, monitor, and control project costs.<\/li>\r\n \t<li>The techniques to estimate costs are expert judgment, analogous estimating, parametric estimating, three-point estimating, and bottom-up estimating. Generally, project managers utilize some techniques together to estimate activity costs.<\/li>\r\n \t<li>The process of subtotaling costs by category or activity is called cost aggregation. This process leads to the establishment of a cost baseline which is a time-phased budget that can be used to measure and monitor cost performance after it has been approved by the key project stakeholders.<\/li>\r\n \t<li>Funds allocated to deal with known-unknowns are called contingency reserves. The monetary amount of contingency reserves is determined after the risks are identified, and the strategies to mitigate the impact of the risks are detailed.<\/li>\r\n \t<li>Projects seldom go according to plan in every detail. Baseline budgets often change after they have been approved.<\/li>\r\n \t<li>A project procurement management plan documents project procurement decisions, specify the approach, and identify potential sellers.<\/li>\r\n \t<li>Project teams should determine whether to build a solution for the organization\u2019s or client\u2019s needs or buy one already available in the market.<\/li>\r\n \t<li>The most common contract types are fixed-price, cost reimbursable or cost plus, and time and materials contracts.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n&nbsp;","rendered":"<div class=\"textbox textbox--key-takeaways\">\n<header class=\"textbox__header\">\n<p class=\"textbox__title\">Key Takeaways<\/p>\n<\/header>\n<div class=\"textbox__content\">\n<ul>\n<li>Allocation of resources allows the project manager to determine the overall budget, most of which is spent on resources.<\/li>\n<li>Three types of project costs are direct costs, direct overhead costs, and general administrative costs.<\/li>\n<li>The project cost management plan is one of the sub-plans of our overall project plan, and it provides guidelines to project managers on how to estimate, budget, manage, monitor, and control project costs.<\/li>\n<li>The techniques to estimate costs are expert judgment, analogous estimating, parametric estimating, three-point estimating, and bottom-up estimating. Generally, project managers utilize some techniques together to estimate activity costs.<\/li>\n<li>The process of subtotaling costs by category or activity is called cost aggregation. This process leads to the establishment of a cost baseline which is a time-phased budget that can be used to measure and monitor cost performance after it has been approved by the key project stakeholders.<\/li>\n<li>Funds allocated to deal with known-unknowns are called contingency reserves. The monetary amount of contingency reserves is determined after the risks are identified, and the strategies to mitigate the impact of the risks are detailed.<\/li>\n<li>Projects seldom go according to plan in every detail. Baseline budgets often change after they have been approved.<\/li>\n<li>A project procurement management plan documents project procurement decisions, specify the approach, and identify potential sellers.<\/li>\n<li>Project teams should determine whether to build a solution for the organization\u2019s or client\u2019s needs or buy one already available in the market.<\/li>\n<li>The most common contract types are fixed-price, cost reimbursable or cost plus, and time and materials contracts.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n","protected":false},"author":3,"menu_order":9,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-300","chapter","type-chapter","status-publish","hentry"],"part":274,"_links":{"self":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/pressbooks\/v2\/chapters\/300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":3,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/pressbooks\/v2\/chapters\/300\/revisions"}],"predecessor-version":[{"id":880,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/pressbooks\/v2\/chapters\/300\/revisions\/880"}],"part":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/pressbooks\/v2\/parts\/274"}],"metadata":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/pressbooks\/v2\/chapters\/300\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/wp\/v2\/media?parent=300"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/pressbooks\/v2\/chapter-type?post=300"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/wp\/v2\/contributor?post=300"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/projectmanagement2ndedition\/wp-json\/wp\/v2\/license?post=300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}