Friday, March 7, 2008

What is Cost Benefit Analysis in PMP

Cost Benefit Analysis is a process of determing the pros and cons of any process, product or activity.

Benefit

  • Completing quality work increases productivity.

Costs

  • Completing quality work may cost more monies than the work is worth.

Gold Plating (or Extra Work)

  • The customer does not need or want more than what was required.



What is the advantage of using Cost Benefit Analysis in Quality Planning?

When work is completed correctly the first time, as expected, the project does not have to spend additional fjunds to redo the work.

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Recommended Books on PMP

Suggested Study Materials

  • PMP-Preparation Recommended Books
  • PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam
  • A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)
  • The PMP Exam: How to Pass On Your First Try (Test Prep series)