L14 - Earned Value Concept Flashcards
What are the three responsibilities of Project Management?
Performance Cost Schedule
What does Schedule Control include?
• Major Milestones • Program Milestones • Payment Milestones • Bar Charts • Network Plans • Critical Path Analysis
What does Cost Control include?
• Manpower • Cost Plans • Actual Costs • CTC & CAC Agreement • POC & P&L (A) • Payment Plan
What does Performance Control include?
• Objectives • SOW and WPDs • Specifications • Risk Assessment • R&D Plan • MFG&AIVPlan • Operations Plan
What are regular progress control methods?
Based on well defined Project Milestones Identification of Problem Areas Prediction of Potential Delays
What are regular cost control methods?
Actual versus Budget Identification of Overruns
What are integrated schedule control methods?
Budgeted Cost Work Scheduled (BCWS), Actual Costs Work Performed (ACWP) and Budgeted Costs Work Performed (BCWP)
How to perform clear and realistic project planning?
Overall Project Requirements Statement of Work (SOW) System/Subsystem/Interface Specification Subsystem Requirements Project Work Breakdown Structure (P/WBS) Work Package Definitions (WPDs) Milestone Definitions
A project status review includes?
•Comparison between “actual” and “budget” values. • Analysis of “cost” and “schedule” variances. • Forecasts and trend analyses .
A financial status review includes?
Budgeted Cost at Completion ‐ BCAC Additional Costs for Changes Actual Costs Commitments Actuals Costs versus Budget Remaining Budget Cost to Completion ‐ CTC Actual Cost at Completion ‐ ACAC
Typical Graph for Earned Value Analysis? (Simplified)
How do you calculate the cost variance?
Cost Variance [CV] = BCWS/ACWP
BCWS: Budget Cost Work Scheduled
ACWP: Actual Cost Work Performed
What does it mean if Cost Variance (CV) is inferior or superior to 1?
If < 1: Negative Trend
If > 1: Positive Trend
How do you calculate the Schedule Variance? (SV)
Schedule Variance (SV) = BCWP/ACWP
