Chapter 8 : Project Control : introduction to earned value mgmt Flashcards
3 learning objectives, introduction to earned value
- concept of productivity
- S-curve or cumulative cost curve
- concept of earned value
what is EVM
EVM is a project control technique
what does EVM stands for
earned value mgmt
EVM measures the _______ _____ _______ ________ at any point in time during its ______
EVM measures the performance of a project at any point in time over its duration.
What does the EVM integrates to measure the project’s performance and progress?
- cost
- schedule
- scope
The ___ ____ _____ is a plot of a project’s ____ _____ _____ with the actual cost of work performed and ____ ____ ___ ___ _____
The cost schedule plan is a plot of a project’s planned cumulative costs that serve as a basis for comparison with the actual cost of work performed and budgeted cost of work performed.
what does an S-curve refers to?
the plot of a project’s planned cumulative costs
what is BCWS equal to?
PV
what is BCWP equal to?
EV
what is the meaning of BCWS
budgeted cost of work scheduled.
“authorized budget assigned to the work to be accomplished for an activity”
what is the meaning of BCWP
budgeted cost of work performed
“how much of the budget should have been spent based on the actual amount of work performed”
planned expenditures at their actual times
formula for earned value
EV = BCWP = % complete x total budgeted cost
what is ACWP equal to?
AC
what is the meaning of ACWP?
actual of work performed.
“actual cost incurred in accomplishing the work”
what is the meaning of BAC?
budget at completion
“total planned value PV of a project, total estimated cost of the project”
what is the meaning of CV
cost variance.
“measure of the cost performance on a project”
cost variance equation
CV = BCWP - ACWP = EV - AC
what does it mean if the CV is positive?
project cost is currently under the budgeted or baseline amount, actual expenditures are less than budgeted
what does it mean if the CV is negative?
project cost is currently over the budgeted or baseline amount, actual expenditures are greater than budgeted
what is SV
schedule variance.
“measure of schedule performance of a project”
SV equation
SV = BCWP - BCWS = EV - PV
if SV is positive, it means that
project is ahead of schedule in terms of cost
if SV is negative, it means that
project is behind of schedule in terms of cost
what is CPI
cost performance index.
“efficiency indicator that measures cost efficiency for work completed”
CPI formula
CPI = BCWP / ACWP = EV / AC
CPI value greater than 1 means
cost underrun of performance to date
what does SPI means?
schedule performance index.
“measures progress achieved compared to progress planned on a project”
SPI formula
SPI = BCWP / BCWS = EV / PV
SPI greater than 1 means
more work was completed than was planned
what is ETC
estimated (remaining cost) to completion
ETC formula when efficiency is assumed to stay the same
ETC = (BAC - EV) / CPI
ETC formula when efficiency will not stay the same
ETC = BAC - EV
what is EAC
project (total cost) estimated at completion
formula EAC
EAC = ETC + AC
