Diploma Project Management       Captain Cook College                Sharon Boyle
   Presentation – Cost management techniques    – some detail as requested   Changes or variations   Check everyone has...
   As per last week’s email   Case studies – we can take through most of    the course    ◦ Building/construction    ◦ C...
1.   EVM an overview2.   Basic Elements3.   Cost Variances4.   Schedule Variances
   tracking tools upon which to base forecasts   Integrates scope, schedule & cost   Answers many questions stakeholder...
   financial analysis specialty from United States    Government programs in the 1960s,   Now significant branch of proj...
   Planned Value    ◦ (PV) = PV or Budgeted cost of work scheduled BCWS      = Hourly Rate * Total Hours Planned or Sched...
   Cost Variance (CV) indicates how much over    or under budget the project is.   Why is under cost a problem?   (CV) ...
   Cost Variance % - how much over or under    budget the project is in terms of percentage   CV% = CV/EV    ◦ Or   CV%...
   CPI = EV/AC   Shows how efficient we are   Above 1 good efficiency   Below 1 project not using resources    efficie...
   TCPI = Total Budget – EV/Total Budget – AC   Another measure of efficiency –    ◦ The correct people do the correct t...
    Schedule Variance (SV) = Earned Value (EV) -    Planned Value (PV)   How much is yet to be completed as per    sched...
   Budget at Completion = total budget   BAC = Baselined effort hours x hourly rate   Estimate to complete – just what ...
   http://www.youtube.com/watch?v=7WsfuvHe    gxE&feature=related
   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,...
Element                                           Description   Date       The date the CR was created   CR#        Assign...
Priority                                            Description  High       <Insert the definition the project assigns to ...
Change requests are evaluated and assigned one ormore of the following change types:        Type                          ...
   Any more examples to choose from the    internet.
Presentation – Cost management techniques –some detail as requestedChanges or variationsCheck everyone has completed   Act...
   Master of Ceremonies suddenly taken ill two    weeks before event and will not be available    for the event. A strong...
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Cost unit 2012 part 2

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Cost unit 2012 part 2

  1. 1. Diploma Project Management Captain Cook College Sharon Boyle
  2. 2.  Presentation – Cost management techniques – some detail as requested Changes or variations Check everyone has completed ◦ Activity 1 – discuss this afternoon ◦ Activity 3 – discuss this afternoon ◦ Written/Oral – tomorrow? ◦ SB CMP started last week & finish tomorrow Everyone continues with Cost ◦ Today & Friday – completing cost Friday 23 August
  3. 3.  As per last week’s email Case studies – we can take through most of the course ◦ Building/construction ◦ Community/event based ◦ Personal – seems Ok with me
  4. 4. 1. EVM an overview2. Basic Elements3. Cost Variances4. Schedule Variances
  5. 5.  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
  6. 6.  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.
  7. 7.  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
  8. 8.  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
  9. 9.  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
  10. 10.  CPI = EV/AC Shows how efficient we are Above 1 good efficiency Below 1 project not using resources efficiently
  11. 11.  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.
  12. 12.  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
  13. 13.  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
  14. 14.  http://www.youtube.com/watch?v=7WsfuvHe gxE&feature=related
  15. 15.  Why important? What can go wrong? Relationship to other aspects of project management?
  16. 16.  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.
  17. 17. 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)
  18. 18. 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>
  19. 19. 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
  20. 20.  Any more examples to choose from the internet.
  21. 21. 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
  22. 22.  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.

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