Which Capability Area involves creating a work plan, schedule, and budget based on estimates?

The capability area that involves creating a work plan, schedule, and budget based on estimates is indeed Planning and Managing Work. This area is focused on establishing structured processes for planning projects effectively. It encompasses defining project scopes, developing detailed work plans, and estimating necessary resources, timeframes, and costs, which are essential for successful project completion.

In this capability area, the emphasis is on creating a roadmap that outlines how to achieve project objectives. It ensures that all project activities are aligned, tracked, and managed according to the established plan. Proper planning and management of work help mitigate risks and optimize resource allocation, ultimately leading to more efficient processes and successful project outcomes.

This aligns well with the principles of CMMI, where effective planning is critical for project success and contributes significantly to the overall maturity of an organization's processes.