Welcome to the next session now project budgets and the reserve analysis thing further those are not an additional cost to the project, very important you are not assigned additional cost to the project. So, if something will not happen, you will not get it done you will this amount is not available to you we have discussed this in the part of the cost contingency on every task and then contingency on the work package level. So, this is if you could see cost estimates, contingency reserves on every activity This is what we have discussed in three point estimates. I want to know as a project manager, what could go wrong and then I will question it to avoid the Parkinson's Law or the busy tribe or whatever this could happen. But again, I am not going to push you unnecessarily I need we need we we need to have buffer we need to have this realistic buffer, we need to have a realistic padding calculated padding based on the risks that could happen.

We don't want to push anybody. So, this is we have cost estimates which is a contingency reserve. Then this is activity then you go on a work package level. We have word package is the last level of a breakdown structure word breakdown structure is the visualization of a deliverable orient deliverable oriented visualize a visualization of a project scope statement you have all deliverables here, but package is the last logical component that you want to control your project as a project manager. And below that we have an activity so we identified the contingency three point estimate on every activity all these will be summed up as a cost estimate for work package level. And then you this is where you want to control control account.

So you might want to control account data work package level or a level up that is in your hand. Then you have a project by jargon which is a cost cost baseline, above the cost baseline you have management reserves. So, this is both our project reserves project budget cost baseline including the management reserves, this is the project budget, but cost baseline is done, where you have a control account, because management reserves are not available to you without approval of the management and it is only for unforeseen events and not the events and identification of the impact that you have done. You have activities work package, control account, project, this is a project this is all you have identified, then you have contingency reserves. This is then you have a baseline a planned cost. Then you have management reserves and the budgeted cost of the project.

Because this is cost management reserves is something would happen this is of course, not happen is ideal situation and it should not have And practically should not ideally should not happen, but it happens. So, results are not an additional cost to the project we have discussed this in cost contingency on every task and then continuous in a work package level are required. This will take you to the control account and then the project contingency reserves then you have a cost baseline contingency reserves are allocated for the contingency plan and fallback plans to deal with associated accepted opportunities and threats we will look into the widest call opportunities and threats because the in the risk as PMI said it is future unforeseen events which could positively or negatively impact your project. So, risk are could have a positive impact and a negative impact we will definitely go into the detail of the risks when we will go into the when we will see the risk knowledge area.

Thank you very much. This is where I conclude my discussion or reserve on reserve analysis. If you have any questions, please let me know and I'll try to answer as soon as possible. Thank you very much. So grind off you