BKFosB5CEAE21zq.jpg' alt='Project Management By Rita Mulcahy Pdf' title='Project Management By Rita Mulcahy Pdf' />Point of total assumption Wikipedia. Calculation of Point of Total assumption the case when EAC exceeds PTA that should be treated as a risk trigger, is shownThe point of total assumption PTA is a point on the cost line of the profit cost curve determined by the contract elements associated with a fixed price plus incentive Firm Target FPI contract above which the seller effectively bears all the costs of a cost overrun. The seller bears all of the cost risk at PTA and beyond, due to a dollar for dollar decrease in profit beyond the costs at the PTA. In addition, once the costs on an FPI contract reach PTA, the maximum amount the buyer will pay is the ceiling price. Preparatrio PMP Autor Ronaldo de Jesus uma das poucas referncias nacionais atualizadas para o PMBOK 5. O livro est bem estruturado, bastante. Are You PMP Exam Ready List of Free PMP Mock Exam Questions ww Benchmark PMP Exam Tips and Free Study Resources here is a list of quality PMP mock exams I have. Next, how are they different They are different in far more ways than they are similar. The PMP is focused on you guessed it project management while the CISSP. The PMBOK GuideSixth Edition PMIs flagship publication has been updated to reflect the latest good practices in project management. Note, however, that between the cost at PTA and when the cost equals the ceiling price, the seller is still in a profitable position only after costs exceed the ceiling price is the seller in a loss position. CalculationeditAny FPI contract specifies a target cost, a target profit, a target price, a ceiling price, and one or more share ratios. The PTA is the difference between the ceiling and target prices, divided by the buyers portion of the share ratio for that price range, plus the target cost. PTA Ceiling Price Target Pricebuyers Share Ratio Target Cost. For example, assume Target Cost 2,0. Target Profit 2. Target Price 2,2. Ceiling Price 2,4. Share Ratio 8. 0 buyer2. PTA 2,4. 50,0. If for a moment, PTA is given and you are trying to calculate the ceiling price for the buyer maximum amount that the buyer will have to spend,the calculation will be2,0. This is a term used in project management when managing specific fixed price contracts. The reason to calculate PTA is that when executing the contract, actual cost is the only finance measurement. Compare this measurement with the cost base line to calculate Cost Performance Index CPI. Completion EAC Estimate at Completion according to PMBOK, or FAC Forecast at Completion in Ms Project. If EAC exceeds PTA, the buyer is expected to pay the ceiling price, and any more overruns beyond PTA will cause a dollar for dollar decrease in profit for the seller. The profit decrease rate become higher, and once actual cost exceeds ceiling price the seller will start losing moneyand then might stop working for the contract. Msi Afterburner 2.2.0 Beta 7 here. From the risk management point of view, EAC should be controlled under PTA to keep this risk far away. When EAC exceeds PTA is found in control cost process, it should be treated as a risk trigger. Related termseditFor cost reimbursable contract, the Point of Total Assumption does not exist, since the buyer agrees to cover all costs. However, a similar incentive arrangement with similar components, called a Cost Plus Incentive Fee CPIF contract sometimes is used. The CPIF includes both a minimum fee and a maximum fee. The share line in combination with the Target Fee, Maximum Fee and Minimum Fee can be used to easily calculate the points at which the incentive arrangement affects fee. The range between these points is called the range of incentive effectiveness. History, exampleeditThe idea of a Point of Total Assumption is an extremely recent one. In the governments efforts to cut cost overruns, the PTA is being introduced to FPIF contracts on an increasingly wide basis. Moreover, high level professional examinations for industry certification, such as the Project Management Professional certification, are beginning to test applicants knowledge of this concept and its application. But an example can be given, with the KC 4. KC 4. 6 EMD contract update March 2. RegulationseditFor contracts subject to the Federal Acquisition Regulations, FAR 1. Government description of FPI. The contract type is implemented by calling out FAR Clause 5. Incentive Price Revision Firm Target. This clause captures the Ceiling Price as well as the government share ratios. If multiple line items are identified as FPI type, the individual line item information shall be included here, otherwise final contract costs and price are reconciled at the contract level. Morfologi Bakteri Pdf more. ReferenceseditLangford, John W. Logistics principles and applications. SOLE Press Series 2nd ed. Mc. Graw Hill. pp. ISBN 0 0. 7 1. 47. X.  Project Management Body of Knowledge PMBOK 5th ed. Project Management Institute. Mulcahy, Rita et al. Rita Mulcahys PMP Exam Prep 8th ed. RMC Publications, Inc. ISBN 9. 78 1 9. Singh, Harvinder 2. Point of Total Assumption Interesting facts in Deep Fried Brain PM Certification Exam Prep Blog.