beese cherger Flashcards
Progress Curves
Cumulative estimated job costs VS construction time
a) One Early Start Curve
b) One Late Start Curve
Total Cost & Budgeted cost Plotted Monthly
Cost Envelop is created from present to end of job
Earned Value Management System (EVMS)
Compared the physical work accomplished to date with the actual cost expenditure and planned work
yet to be accomplished. This 3-Dimensional comparison determines the earned value on a project and
forms the basis for a more accurate projection of final project cost.
Benefit
An Earned Value Management System combines the actual cost of work completed with the planned
value of that work to generate a projection and determine whether a project is on track and on budget.
This provides project managers with a more accurate and comprehensive view of the project’s progress
over using a simple progress curve, which only shows the amount of work completed over time.
The Three Variables BCWP, BCWS, and ACWP
Budgeted Cost of Work Performed (BCWP)
Cumulative budgeted value of all work activities performed to date.
Budget Cost of Work Scheduled (BCWS)
Cumulative planned value of all the work activities to be accomplished in the baseline
schedule to date.
Actual Cost of Work Performed (ACWP)
Cumulative cost for work completed to date OR current cost of work
Cost Variance (CV)
CV = BCWP - ACWP
Schedule Variance (S)
SV = BCWP - BCWS
Cost Performance Index (CPI)
CPI = BCWP / ACWP
Schedule Performance Index (SPI)
SPI = BCWP / BCWS
CPI of 0.8 Means
20% Cost overrun (only 80 cents of every dollar value achieved)
SPI of 1.2 Means
120% work done per budgeted dollar
The Three Variables BAC, EAC, and TCPI
Budget at Completion BAC
Estimate at Completion EAC
Total Completed Performance Index TCPI
EAC1 =
ACWP + (BAC – BCWP) / CPI
EAC2 =
ACWP + (BAC – BCWP) / (CPI * SPI)
TCPI =
(BAC – BCWP) / (EAC – ACWP)
