Business Project Management – Chap 13 pt.2 – Flashcards

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MathModelLastSlide & MonthlyStatusReport?
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MathModelLastSlide & MonthlyStatusReport?
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Budget=PV=Baseline
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Budget=PV=Baseline
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Earned Value (EV)
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Budgeted cost of the work performance. X for a task = (percent complete) x (original budget). Stated differently, EV is the percent of the original budget that has been earned by actual work completed. [BCWP - budgeted cost of the work performed]
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Planned Value (PV)
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The X starts with the time-phased costs that provide the project budget baseline, which is called the X of the work scheduled. The time-phased baseline. X of the work scheduled. [BCWS—budgeted cost of the work scheduled]
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Actual costs (AC)
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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]
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Cost variance
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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]
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Schedule variance (SV)
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X: difference between the earned value and the baseline line to date. [X = EV - PV]
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BAC
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Budgeted cost at completion. Total budgeted cost of the baseline or project direct cost accounts.
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EAC
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Estimated cost at completion.
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ETC
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Estimated cost to complete remaining work.
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VAC
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Estimated cost to complete remaining work.
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CV (Cost variance)
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Indicates if the work accomplished using labor and materials costs more or less than was planned at any point in the project.
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SV (Schedule Variance)
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Presents an overall assessment in dollar terms of the progress of all work packages in the project scheduled to date.
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Baseline (PV)
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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.
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Cost performance (CPI)
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X index: Measures the cost efficiency of work accomplished to date. (Earned Value) / (Actual cost)
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Scheduling performance (SPI)
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X index: Measures scheduling efficiency (Earned Value) / (Planned Value)
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PCIB
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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
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PCIC
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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
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EACre
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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
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EACf
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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
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To Complete Performance Index (TCPI)
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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).
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