Week 8 Flashcards
Good or bad? When a project is under budget and ahead of schedule?
Good
Good or bad? When a project is under budget and behind schedule?
Hard to tell
What are the three components that make up a Direct Cost?
Equipment, Material and Labour
What is the industry term for a document that breaks down the contract into billable values for work?
Schedule of Values. SOV.
- SOV is the decomposition of the contract into tasks or groups of tasks that have a dollar value assigned to them.
-The
SOV is used in the measurement process for determining what work has been accomplished or earned.
-The total of the
SOV must equal the contract price including the fee (contractor’s profit).
What are the two parameters for Baseline Values?
Time and dollars earned
What is BCWS?
Budget Cost of Work Scheduled.
- The value of the work planned or scheduled to
be accomplished within a specific time period
as illustrated in the schedule. - The value of the work planned or scheduled to
be accomplished within a specific time period
as illustrated in the schedule.
What is PV?
Planned Value.
Planned Value = (dollars earned / total LF) x (no.days x daily output LF value)
What is EV?
Earned Value which is determined when project was actually ahead or behind schedule.
EV=(Actual value of LF/anticipated LF) x PV
-When it is measured in terms of the planned value, it is also called the
Budgeted Cost of Work Performed (BCWP)
How to calculate Variance?
Variance = PV - EV
What are the three categories of basic values?
•Planned Value (PV):
The value
of the work planned or scheduled to be accomplished within a specific time period as illustrated in the schedule. This is
also known as the Budgeted Cost for Work Scheduled (BCWS)
•Earned Value (EV):
The value
of the work completed measured in terms of the planned value of the work. It is the earned value for a task and a principle
measurement in the Earned Value Management process. This is also known as the Budgeted Cost for Work Performed (BCWP).
•Actual Cost (AC):
The actual cost incurred in the performance of the work for a given time period. It is one of the principle measurement tools
of project
control. This is also known as the Actual Cost of Work Performed (ACWP)
What does EV tell you?
-EV is the quantification of the “worth” of the work done to date.
-EV tells you, in physical terms,
what (the sum of the budget) the project has accomplished.
What does AC tell you?
Actual Cost (AC), also called actual expenditures, is the cost incurred for executing work on a project.
What is Schedule Variance?
What do the positive and negative values represent?
SV = EV - PV SV = BCWP - BCWS
- Positive values means ahead of schedule.
- Negative values means behind schedule.
-Schedule Variance status does indicate the dollar value difference between work that is ahead or behind
the plan and reflects a given measurement method.
Schedule Variance status
does not:
•address impact of work sequence
•address importance of work
•reflect critical path assessment
•indicate amount of time it will slip
•identify source ( labor & material) of difference
•indicate the time ahead/behind (or regain) schedule
•indicate the cost needed to regain schedule
What is Schedule Performance Index? What determines if it is ahead or behind schedule?
SPI = BCWP/BCWS SPI = EV/PV
> 1.0 is ahead of schedule.
<1.0 is behind schedule.
What is Cost Variance? What do the positive and negative values represent?
CV = EV - AC CV = BCWP - ACWP
- Positive values means it is under budget.
- Negative values means it is over budget.
