Lecture 4B - Earned value management Flashcards

1
Q

What is EVM?

A

Earned value management
- Integrates project scope, cost and schedule to assess a project’s performance and progress.
- Measures performance of a project at any point in time or duration

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2
Q

What is the cost schedule plan?

A
  • Plot of a project’s planned cumulative costs that serves as basis for comparison with actual cost of work performed.
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3
Q

What is cost control

A
  • Done to detect cost overrun
  • it allowed for timely corrective actions to minimize or eliminate impacts of cost overrun.
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4
Q

What is productivity

A
  • Measure of the profres of work done against a strandard such as project schedule.
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5
Q

What is an s-curve

A

Used as a means of predicting project cash flow requirements.
- Provides an idea as to how the project budget will be spent if the work is constructed exactly as estimated and scheduled.
- Constructed from cumulatively adding the costs from the WBS.

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6
Q

What is planned value (PV)

A
  • Authorized budget assigned to the work to be accomplished for an activity.
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7
Q

What is Earned value (EV)

A
  • how much of the budget should have been spent based on the actual amount of work performed.
    = % complete x total budgeted cost.
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8
Q

Actual cost (AC)

A

Actual cost incurred in accomplishing the cost.

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9
Q

Budget at completion (BAC)

A

Total PV (planned value) of a project.

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10
Q

Cost variance (CV)

A

is a measure of the cost performance on a project
CV = Earned value (EV) - Acutal cost (AC)
if + -> underbudget -> good
if - -> overbudget

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11
Q

Schedule variance (SV):

A

Measure of the schedule performance of a project
SV = Earned Value (EV) - Planned value (PV)
+ -> ahead of schedule -> good

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12
Q

What is cost performance index (CPI)

A

Alternative to CV, efficiency indicator that mesures cost efficiency for work completed.
CPI = EV / AC
- CPI value greater than 1 -> cost underrun of performance to date.

Inneficiency = 1 / CPI

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13
Q

Schedule performance index (SPI)

A

alternative to schedule variance SV, measures progress achieved compared to progress planned on a project.
SPI = earned value / planned value
if greater than 1 -> more work was completed than was planned.

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14
Q

Estimated remaning cost to completion (ETC)

A

remaining till completion
ETC = (BAC - EV) / CPI
- Assumed that project will be completed at the same level of efficiency or inefficiency.

ETC = BAC - EV
- assuming CPI in future = 1
- variances in future will not be the same as current variances

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15
Q

Estimated at completion cost ( EAC)

A

= ETC + AC

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16
Q

Estimated duration of the project

A

= expected duration of the project / SPI