- Cost is one of 3 Triple constraints of the project. Managing costs of the project is very crucial and hardest part of the project. It spans across all phases of the project right from conception to closure of the project.
- Cost Management is not just controlling “Costs”; it involves definitive planning and preparing budgets. Collecting cost associated data. Comparing the data to prepared budgets and taking appropriate actions when needed.
- The process involved in estimating, budgeting, and controlling cost so that the project can be completed within approved budget.
- Value analysis (value engineering)
• Looking at less costly way to do the same work within the same scope
for the subject offered in GTU in the final year (8th semester), construction management
final year
Module:- 5 project scheduling and resource leveling
Project cost management ,cost estimation cost control and evm for large epc projects and is essential for knowing the cost parameters for all construction engineers.
Construction Delay Analysis, SimplifiedMichael Pink
Learn how to perform a delay analysis in the construction industry. Capture and study your impacts to determine why a project was late. Use this proven method to ensure that you get paid for delays caused by others.
for the subject offered in GTU in the final year (8th semester), construction management
final year
Module:- 5 project scheduling and resource leveling
Project cost management ,cost estimation cost control and evm for large epc projects and is essential for knowing the cost parameters for all construction engineers.
Construction Delay Analysis, SimplifiedMichael Pink
Learn how to perform a delay analysis in the construction industry. Capture and study your impacts to determine why a project was late. Use this proven method to ensure that you get paid for delays caused by others.
The concepts and processes on how to perform project cost management according to PMBOK Guide 6th edition. You'll find key concepts and terms, plan cost management, estimate costs, determine budget, and control cost.
Chapter 09 of ICT Project Management based on IOE Engineering syllabus. This chapter mainly focuses on cost and project, cost management, cost estimating and more related to cost and project. Provided by Project Management Sir of KU
In this presentation we have done earlier a project for Phillip Morris (Pakistan) for the access control system and canteen management system. It is the project presentation for our subject Planning and Scheduling. i hope it is the best for the understanding Project planning and scheduling.
This material is intended to provide project leaders with a foundational understanding of leading practice project management processes, activities, tools, techniques, and deliverables as prescribed the Project Management Institute (PMI).
A risk is defined as “an uncertain event or condition that, if it occurs, has a positive and negative effect on a project’s objectives.” Risk is inherent with any project, and project managers should assess risk continually and develop plan to address them. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Most critical, risk management plans include a risk strategy.
This module on Managing Risk discusses different type of risk that needs to be taken into account by the management while implementing a project. The other topics converged in this module include probability-impact matrix, Risk Quantification; Mitigating/Transferring risk; Risk audits/Review; Sample Risk plan and how to initiate Risk Management Planning.
Project Controls are the data gathering, data management and analytical processes used to predict, understand and constructively influence the time and cost outcomes of a project or programme; through the communication of information in formats that assist effective management and decision making."
This is the part of the presentation done by a PMP Workgroup which includes the project managers from NashTech, Trobz and Besco to study the Project Management and get the PMP certification. This part describes the process of Sequencing Activities in the Project Schedule Management knowledge area.
The project management monitoring and controlling starts as soon as a project begins. Project monitoring and controlling processes are where the performance of the project is measured and action is taken based on an analysis of this data.
This lecture provides a short but comprehensive review of earned value analysis and how this technique helps us to determined the project financial and schedule situation.
The concepts and processes on how to perform project cost management according to PMBOK Guide 6th edition. You'll find key concepts and terms, plan cost management, estimate costs, determine budget, and control cost.
Chapter 09 of ICT Project Management based on IOE Engineering syllabus. This chapter mainly focuses on cost and project, cost management, cost estimating and more related to cost and project. Provided by Project Management Sir of KU
In this presentation we have done earlier a project for Phillip Morris (Pakistan) for the access control system and canteen management system. It is the project presentation for our subject Planning and Scheduling. i hope it is the best for the understanding Project planning and scheduling.
This material is intended to provide project leaders with a foundational understanding of leading practice project management processes, activities, tools, techniques, and deliverables as prescribed the Project Management Institute (PMI).
A risk is defined as “an uncertain event or condition that, if it occurs, has a positive and negative effect on a project’s objectives.” Risk is inherent with any project, and project managers should assess risk continually and develop plan to address them. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Most critical, risk management plans include a risk strategy.
This module on Managing Risk discusses different type of risk that needs to be taken into account by the management while implementing a project. The other topics converged in this module include probability-impact matrix, Risk Quantification; Mitigating/Transferring risk; Risk audits/Review; Sample Risk plan and how to initiate Risk Management Planning.
Project Controls are the data gathering, data management and analytical processes used to predict, understand and constructively influence the time and cost outcomes of a project or programme; through the communication of information in formats that assist effective management and decision making."
This is the part of the presentation done by a PMP Workgroup which includes the project managers from NashTech, Trobz and Besco to study the Project Management and get the PMP certification. This part describes the process of Sequencing Activities in the Project Schedule Management knowledge area.
The project management monitoring and controlling starts as soon as a project begins. Project monitoring and controlling processes are where the performance of the project is measured and action is taken based on an analysis of this data.
This lecture provides a short but comprehensive review of earned value analysis and how this technique helps us to determined the project financial and schedule situation.
Project Cost Management includes the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.
Most Popular 20 Evergreen Project Management TermsSHAZEBALIKHAN1
Project management requires a deep understanding of the jargon and terminology for effective implementation of practices. The article presents 20 popular and common terms of project management
Project Procurement Management (PPM) includes the processes necessary to purchase or acquire products, services, or results needed from outside the project teams. It also includes the contract management and change control processes required to develop and administer contracts or purchase orders issued by authorized project team members.
As per PMBOK - "The whole point of undertaking a project is to achieve or establish something new, to venture, to take chances, to risk. Risk may have positive effects or negative effects on the project “Schedule” and/or “Cost”. Positive risks are Opportunities and negative risks are losses or threats; remember both risks are uncertain “percentage of occurrence less than 80%”. Risk Management purpose is to manage (Plan and implement) these uncertainties.
- This processes group includes processes to organize, manage and lead a project team. It also assigns roles and responsibilities for completing project. Besides, it does resource leveling also.
- IT is very important to understand roles and responsibilities of the team and links to the team and should able to communicate that to all affected people. Few important roles associated with Project are: Sponsor, Management Team, executive/leadership team, Project Team, Project Manager, functional manager.
- The term “Quality” refers to the degree or amount to which a set of inherent or impede characteristics fulfills a number of predetermined stakeholders’ / sponsors’ requirements. Generally, “Quality Drives Productivity”
Project scope can be described as "the work that needs to be accomplished to deliver the End Result (product or service or other project's objectives) with the specified features and functions that includes meetings, reports, analysis and all the other parts of Project Management.
- Project time management start with planning by the project management team (not shown as a discrete process)
- Project Time Management provides a basis to activity definition, sequencing them in an order, Estimate Resource and Duration, Develop and control schedule.
Initiation Planning Execution Monitoring and Controlling Closing
Project Integration Management includes the processes and activities needed to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups.
“A project is a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a definite beginning and end.”
Memorandum Of Association Constitution of Company.pptseri bangash
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
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Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
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According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
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1. 4. Project Cost Management
-
Cost is one of 3 Triple constraints of the project. Managing costs of the project is
very crucial and hardest part of the project. It spans across all phases of the project
right from conception to closure of the project.
-
Cost Management is not just controlling “Costs”; it involves definitive planning and
preparing budgets. Collecting cost associated data. Comparing the data to prepared
budgets and taking appropriate actions when needed.
-
The process involved in estimating, budgeting, and controlling cost so that the
project can be completed within approved budget.
Value analysis (value engineering)
Looking at less costly way to do the same work within the same scope
Following table lists all 3 Processes in this Knowledge Area, spread across '2 out of 5
Process Groups'
-
5 Process
Groups
Initiation
Planning
Executi
on
Monitoring and
control
Closing
4.1. Cost Estimating
Processes
4.3. Cost Control
4.2. Cost Budgeting
4.1 Estimate Cost
- The process of developing approximation of the monetary resources needed to complete
project activities
Cost trade-offs & risk must be considered
Cost estimates should be refined
Inputs
-
-
Scope baseline
Project schedule
Human resource plan
Risk register
Enterprise
environmental
factors
Organizational
process assets
Tools
-
Expert judgment
Analogous estimating
Parametric estimating
Bottom-up estimating
Three-point estimates
Reserve analysis
Cost of quality
Project management
estimating software
Vendor bid analysis
Outputs
- Activity cost estimates
- Basis of estimates
- Project document updates
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
2. There are 3 different types of estimation techniques listed over here under Tools section of Cost
Estimation.
- Analogous Estimation techniques
- Bottom-up approach technique
- Parametric approach technique
Analogous estimation
-It is mainly based on Expert Judgment or based on similar previous Projects. This approach is
very useful in early stages of the project where WBS and work packets are completely defined.
The expert judgment success factor depends on similarity of previous projects too. The main
disadvantage is that it is good for ball-park figures but not for precise project cost.
Parametric Estimation
- It considers different project characteristics to calculate total costs of the project. For example,
in the Telephone wire digging project, if we know cost per meter we can estimate it to whole
project. For a house construction, if we know cost to construct per square feet, we can estimate
total house project. For complex projects there will be multi dimensional parameters involved.
When historic information is available these parametric estimation will be more accurate.
Bottom-up approach
- It is elaborative estimation technique. We start estimating from the bottom most part of WBS
hierarchy which is work package. Work packages are divided into activities. Summing up work
packages to modules or groups, summing up different modules to stages, summing up different
stages to project is the bottom-up approach method. The people who will actually do this work
should create the estimates.
Types of Cost;
-
-
Variable Costs
Change with the amount of production/work
e.g. material, supplies, wages
Fixed Costs
Do not change as production change
-
Direct Costs
Directly attributable to the work of project
-
e.g. set-up, rental
e.g. team travel, recognition, team wages
Indirect Costs
overhead or cost incurred for benefit of more than one project
e.g. taxes, fringe benefit, janitorial services
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
3. -
It is very important to understand “Cost Variability” that focuses on changing of
cost over time as well as over volume;
Inflation; cost of some items increase over time.
Deflation; cost of technology items decrease over time.
Direct Costs vs. Indirect Costs
-
when talking about “a new project team member”, the direct cost will be his salary
while the indirect costs may be the insurance premiums given to him, the paid pill
for his telephone calls, computer internet access cost, his disk or disk space that have
been given to him.
-
When talking about “a specific material needed”, the direct cost will be its price
while the indirect cost will be the transportation cost paid to receive such material as
well as the storing cost...etc.
Fixed Costs vs. Variable Costs
-
A fixed cost is like the cost of a unit has a certain nature which maybe a resource
such as a specific material or equipment used for the project. If you need to buy a
piece of equipment to allow the project to continue, that is simply a fixed cost
regardless it will be used for once or hundreds of times.
-
Variable costs are directly related to the level of work with each and every element
of the WBS. It is like the cost of water needed to drink or Gasoline needed to some
machinery.
Quality/Accuracy of Cost Estimation
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
4. 4.2 Determine Budget
- Process of aggregating the estimated cost of individual activities or work packages to
establish an authorized cost baseline.
Inputs
- Activity cost estimates
- Basis of estimates
- Scope baselines
- Project schedule
- Resource calendars
- Contracts
- Organizational process
assets
Tools
-
Cost aggregation
Reserve analysis
Expert judgment
Historical relationship
Funding limit
reconciliation
Outputs
-
Cost performance
baseline
Project funding
requirements
Project document
updates
- The main goal of this process is to develop Cost Baseline. At the starting point of this Process,
you should have finished Project Cost Estimation and have a complete list of estimates of
individual
activities.
Cost Aggregation;
-
We use Cost Aggregation tools to sum up those low level activity costs to Work package to
higher levels of WBS hierarchy.
-
Reserves & risk management are important while estimating!
Contingency reserves/Cost Baseline (the cost impacts of the remaining risk)
Management reserves/Cost Budget (extra fund to cover surprising risks or
changes to the project).
The cost baseline
-
It is a reference point for the project to compare time to time. You will monitor and control
project costs comparing to the baseline and report any variations. Costs at work package
level are tied to financial systems using Chart of Accounts. Chart of accounts show cost
allocation categories.
Project manager is allowed to allocate extra resources (time or money) as a buffer for known
unknowns; we call it as Contingency Reserve.
Determines Budget: Other considerations
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
5. - High level parametric estimate as a rule of thumb
E.g. testing cost 50% of development cost
- Funding limit reconciliation = checking cash flow
When the money will be available?
- Reconciliation needed before proposed cost baseline and cost budget become final
Such reconciliation is part of integration management
4.3 Control Cost
- The process of monitoring the status of the project to update the project budget and
managing changes to the cost baseline.
Inputs
- Project management
plan
- Project funding
requirement
- Work performance
information
- Organizational process
assets
Tools
-
Earned value
management
Forecasting
To-complete
performance index
Performance reviews
Variance analysis
Project management
software
Outputs
-
Work performance
measurement
Budget forecast
Organizational process
updates
Change requests
Project management plan
updates
Project document updates
Cost control:
Once you estimate Project costs as well as cost baseline and prepare a Budget, you will
be on cruise mode to control the costs. That doesn’t mean it is easy thereafter. No not at
all. You have to monitor your cost so closely. Your work performance information is key
input for this process. You should have clear set templates to report the work progress.
Otherwise all unwanted junk data might ruin the soup.
How to control cost?
-
Follow the cost management plan
-
Look at any organizational process asset that are available
-
Manage change
Recording all appropriate change
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
6.
Ensuring requested changes are agreed upon
-
Preventing incorrect change
Managing the actual changes when and as they occur
Measure and measure and measure (monitoring)
Project performance review is another Tools & Techniques provided. You will review
project progress with your baseline plans and will provide what you’ve earned against
what you have planned. This is known as Earned Value Analysis and helps you to track
your day to day progress. 3 possible scenarios are: you are progressing ahead of plan that
means you are getting more than what you have planned, or progress is as per the plan or
not getting enough worth for your investment. Based on these 3 scenarios you can take
according corrective actions. Corrective actions are what you are supposed to do in this
process.
You can use Project Management software of your choice to help you in this regard. MS
Project is popular one or even you can simply use well planned out Excel sheets to track
those costs.
First you will find variances and report those using Variance analysis. The terms you use
over here are Cost Variance (CV) and Schedule Variance (SV). From that point you
might required to forecast rest of the project. This involves estimating rest of the work.
You use terms like Estimation to Completion (ETC) and Estimate at Complete (EAC).
Those names are telling what you have to Estimate.
Other terms you use here are Cost Performance Index (CPI) and SPI (Schedule
Performance Index)
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
8. Earned Value Management
-
Method to measure project performance against scope, schedule and cost baseline
(performance measurement baseline).
-
Interpretation of basic EVM performance measures
Cost Performance Index (CPI)
Schedule Performance Index (SPI)
Exercise;
-
You have a project to build a box. The box is six sided. Each side is to take one day to
build and is budgeted for $1000 per side. The sides are planned to be completed one
after the other. Today is the end of day three.
-
Using the following project status chart, calculate PV, EV, AC, BAC, CV, CPI, SV,
SPI, EAC, ETC, VAC.
-
Describe your interpretation based on the calculation!
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
9. Solution;
Hence, based on the result table;
• Over budget, getting 0.88 dollar for every spent dollar,
• Ahead schedule, progressing 101% of the rate planned,
• Probably will spend $6818 at the end (estimation),
• need $3368 to complete,
• Over budget at the end for about $818 (estimation)
Performance Metrics;
-
Budget At Completion (BAC) “Total cost of the project.”
-
Budgeted Cost for Work Scheduled (BCWS) / Planned Value (PV)
-
The amount expressed in Pounds (or hours) of work to be performed as
per the schedule plan.
PV = BAC * % of planned work.
Budgeted Cost for Work Performed (BCWP) / Earned Value (EV)
-
The amount expressed in Pounds (or hours) on the actual worked
performed.
EV = BAC * % of Actual work
Actual Cost of Work Performed (ACWP) / Actual Cost (AC)
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
10. Cost Forecasting:
-
Estimate At Completion (EAC)
-
The expected TOTAL cost required to finish complete work.
-
EAC = BAC / CPI
= AC + (BAC - EV) (at typical case)
= AC + ((BAC - EV) / CPI) (The same performance will remain)
= AC + (BAC - EV) / (CPI* SPI) (The same performance will remain +
Extra loss due to delay in time)
* Here “typical” means it is assumed that similar variances will not occur in the future.
-
Estimate to complete (ETC)
-
The expected cost required to finish all the Remaining work.
-
ETC
= EAC - AC
= (BAC - EV) / CPI
Variances:
Cost Variances (CV)
Determine “How much under or over budget?”
CV = EV-AC
NEGATIVE is over budget, POSITIVE is under budget.
Schedule Variances (SV)
Determine “How much ahead or behind schedule?”.
SV = EV-PV
NEGATIVE is behind schedule, POSITIVE is ahead of schedule.
Variance At Completion (VAC)
Variance of “TOTAL” cost of the work and expected cost.
VAC = BAC - EAC
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
11. Performance Indices:
Cost Performance Index
CPI = EV / AC
“Over (< 1) or under (> 1) budget”.
Schedule Performance Index
SPI = EV / PV
“Ahead (> 1) or behind (< 1) schedule”.
To-Complete Performance Index (TCPI)
-
Helps the team determine the efficiency that must be achieved on the remaining
work for a project to meet a specified endpoint, such as BAC or the team’s revised
EAC.
TCPI = Remaining Work (BAC – EV) / Funds Remaining (EAC - AC)
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
12. Problem: A project has a budget of £10M and schedule for 10 months. It is assumed that
the total budget will be spent equally each month until the 10th month is reached. After 2
months the project manager finds that only 5% of the work is finished and a total of £1M
spent.
Solution:
PV = £2M
EV = £10M * 0.05 = £0.5M
AV = £1M
CV = EV-AC = 0.5-1 = -0.5M
CV% = 100 * (CV/EV) = 100*(-0.5/0.5) = -100% overrun
SV = EV-PV = 0.5-2 = -1.5 months
SV% = 100 * (SV/PV) = 100*(-1.5/2) = -75% behind
CPI = EV/AC = 0.5/1 = 0.5
SPI = EV/PV = 0.5/2 = 0.25
EAC = BAC/CPI = 10/0.5 = £20M
ETC = (BAC-EV) / CPI = (10-0.5)/0.5 = £19M
Time to compete = (10-0.5)/0.25 = 38 Months
This project will take TOTAL £20M (19+1) and 40 (38+2) Months to complete.
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD
13. Hints to remember;
-
EV comes in most of formulas specially regarding “Variance” & “Index”
-
If it’s variance, the formula is EV – something.
-
If it’s index, EV / something.
-
If it relates to cost, use Actual Cost.
-
If it relates to schedule, use PV.
-
Negative numbers are bad, positive is good.
By: Mohamed Salah ElDien Mohamed Aly, MSc, PMP®, DIT, MCAD