Business Project Management – Chap 13 pt.2 – Flashcards

Actual cost of the work completed. The sum of the costs incurred in accomplishing the work to date. [ACWP—actual cost of the work performed]

X tells us if the work accomplished costs more or less than was planned at any point over the life of the project. X: difference between the earned value and the actual costs for the work completed to date . [X = EV - AC]

X: difference between the earned value and the baseline line to date. [X = EV - PV]

Budgeted cost at completion. Total budgeted cost of the baseline or project direct cost accounts.

Estimated cost at completion.

Estimated cost to complete remaining work.

Estimated cost to complete remaining work.

Indicates if the work accomplished using labor and materials costs more or less than was planned at any point in the project.

Presents an overall assessment in dollar terms of the progress of all work packages in the project scheduled to date.

An anchor point for measuring performance. The X is the sum of the cost accounts, and each cost account is the sum of the work packages in the cost account. Three direct costs are typically included in Xs: Labor, equipment and materials (and project direct overhead costs). Costs the PM can control. Overhead costs and profits are typically added later.

X index: Measures the cost efficiency of work accomplished to date. (Earned Value) / (Actual cost)

X index: Measures scheduling efficiency (Earned Value) / (Planned Value)

Percent complete index, which compare the to-date progress to the end of the project Percent complete X: Looks at percent complete in terms of budget amounts X = (Earned Value) / (Budgeted cost at completion) X = EV / BAC

Percent complete index, which compare the to-date progress to the end of the project Percent complete X: Views percent complete in terms of actual dollars spent to accomplish the work to date and the actual expected dollars for the completed project. X = (Actual Cost) / (Estimated cost at completion) X = AC / EAC

Method for revising estimates of future project cost: We use X to represent revisions made by experts and practitioners associated with the project (usually done in smaller projects). X = (Actual Cost) / (Revised estiated cost to complete ramaining work) X = AC / ETCre

Method for revising estimates of future project cost: This method uses the actual cost to date plus and efficiency index (CPI). I.e., estimated total cost at completion. X = ETC + AC ETC = (BAC-EV)/(EV/AC) (BAC-EV)->Work remaining (EV/AC)-> CPI ETC: Estimated cost to complete remaining work AC: Cumulative actual cost of work completed to date CPI: Cumulative cost index to date BAC: Total budget of the baseline EV: Cumulative budgeted cost of work completed to date

This ratio measures the amount of value each remaining dollar in the budget must earn to stay within the budget X = (BAC-EV) / (BAC-AC) BAC: Total budget of the baseline AC: Cumulative actual cost of work completed to date EV: Cumulative budgeted cost of work completed to date X < 1: Complete project without using the whole budget. Opens possibilities to improve quality and increase scope (Increase profit).