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7 - PROJECT COST MANAGEMENT

7.4.2.6 Reserve Analysis

See Section 7.4.2.6 of the PMBOK Guide.
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7.4.2.7 Management Metrics

Earned value graphs, burndown charts, and cumulative flow diagrams provide visual indicators of software cost
measurement for project control. They are based on planned versus actual cost, time, and product features.

• Earned value graphs. An earned value graph for a project displays budgeted and actual costs plus
estimated and actual schedule progress on the vertical axis versus time on the horizontal axis. Cumulative
trend lines based on periodic earned value reports display the deviations of planned versus actual cost 7
and planned versus schedule progress as well as the projections of estimated actual cost and estimated
completion date versus the estimated actual cost and estimated completion date.

• Burnup and Burndown charts. A burndown chart is a graphical representation of remaining work versus
time. The remaining work (i.e., the backlog) is typically displayed on the vertical axis, with time along the
horizontal. A burndown chart can be used to visualize project completion. A set of previous burndown
charts can provide trends for the project. A burnup chart is illustrated in Figure 6-6 of this Software
Extension and a burndown chart is shown in Section 10.2.3.7 of this Software Extension.

• Cumulative flow diagrams. As illustrated in Figure 6-5 of this Software Extension, cumulative flow
diagrams (CFDs) provide a method for tracking the progress of an adaptive life cycle software project.
CFDs communicate progress while indicating the degree of completion because they show the total scope,
work in progress, and work completed. CFD diagrams can be correlated with resource expenditures to
support cost control.

7.4.3 Control Costs: Outputs

The outputs in Section 7.4.3 of the PMBOK Guide are applicable to controlling the costs for software projects.
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7.4.3.1 Work Performance Information

See Section 7.4.3.1 of the PMBOK Guide.
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7.4.3.2 Cost Forecasts

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See Section 7.4.3.2 of the PMBOK Guide.

7.4.3.3 Change Requests

See Section 7.4.3.3 of the PMBOK Guide.
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©2013 Project Management Institute. Software Extension to the PMBOK Guide Fifth Edition 137
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