tracking tools upon which to base forecasts Integrates scope, schedule & cost Answers many questions stakeholders need Performance can be shown as ◦ Past ◦ Current ◦ Predictive Promises to reduce over-runs
financial analysis specialty from United States Government programs in the 1960s, Now significant branch of project management. In the late 1980s and early 1990s, EVM emerged as a project management methodology EVM has become an essential part of every project tracking.
Planned Value ◦ (PV) = PV or Budgeted cost of work scheduled BCWS = Hourly Rate * Total Hours Planned or Scheduled Actual Cost ◦ (AC) = hourly rate x total hours spent Earned Value ◦ (EV)= Baselined costs x % complete % Completed Planned ◦ % Completed planning =PV/BAC
Cost Variance (CV) indicates how much over or under budget the project is. Why is under cost a problem? (CV) = Earned Value (EV) – Actual Cost (AC) Also CV = BCWP – ACWP ◦ Positive Cost Variance Indicates the project is under budget ◦ Negative Cost Variance Indicates the project is over budget
Cost Variance % - how much over or under budget the project is in terms of percentage CV% = CV/EV ◦ Or CV% = CV/Budgeted Cost of Work
CPI = EV/AC Shows how efficient we are Above 1 good efficiency Below 1 project not using resources efficiently
TCPI = Total Budget – EV/Total Budget – AC Another measure of efficiency – ◦ The correct people do the correct things within a clear process ◦ Above 1 utilization must be stringent ◦ Below 1 lenient.
Schedule Variance (SV) = Earned Value (EV) - Planned Value (PV) How much is yet to be completed as per schedule +ve Schedule variances = we are ahead of time -ve Schedule variance = we are behind schedule Then same % as for Costs
Budget at Completion = total budget BAC = Baselined effort hours x hourly rate Estimate to complete – just what it says. Estimate hours required x hourly rate
Why important? What can go wrong? Relationship to other aspects of project management?
The establishes an orderly and effective procedure for ◦ tracking the submission, ◦ coordination, review, evaluation, ◦ categorization, and ◦ approval for release of all changes to the project’s baselines.
Element Description Date The date the CR was created CR# Assigned by the Change Manager Title A brief description of the change requestDescription Description of the desired change, the impact, or benefits of a change should also be describedSubmitter Name of the person completing the CR Form and who can answer questions regarding the suggested change Phone Phone number of the submitter E-Mail Email of the submitter Product The product that the suggested change is for Version The product version that the suggested change is for Priority A code that provides a recommended categorization of the urgency of the requested change (High, Medium, Low)
Priority Description High <Insert the definition the project assigns to a high priority CR>Medium <Insert the definition the project assigns to a medium priority CR> Low <Insert the definition the project assigns to a low priority CR><priority> <Insert the definition the project assigns to this level of priority CR>
Change requests are evaluated and assigned one ormore of the following change types: Type Description Scope Change affecting scope Time Change affecting time Duration Change affecting duration Cost Change affecting cost Resources Change affecting resources Deliverables Change affecting deliverables Product Change affecting product Processes Change affecting process Quality Change affecting quality
Any more examples to choose from the internet.
Presentation – Cost management techniques –some detail as requestedChanges or variationsCheck everyone has completed Activity 1 – discuss this afternoon Activity 3 – discuss this afternoon Written/Oral – tomorrow? SB CMP started last week & finish tomorrowEveryone continues with Cost Today & Friday – completing cost Friday 24 August
Master of Ceremonies suddenly taken ill two weeks before event and will not be available for the event. A strong suggestion from Councillors to get a professional. The Council access officer wants to know how the event is to cater meet council’s Universal access policy.