Project Monitoring and Control (EVM) & PERT Notes PDF

## WEEK-8 ### Project Monitoring and Control (EVM) & PERT #### Completion of Project: (Progress) * For determining progress of Project. dep * Actual cost vs Planned cost * Progress depends on work performed, not actual cost * Complete of multiple activity can't be cooked out because work...

## WEEK-8 ### Project Monitoring and Control (EVM) & PERT #### Completion of Project: (Progress) * For determining progress of Project. dep * Actual cost vs Planned cost * Progress depends on work performed, not actual cost * Complete of multiple activity can't be cooked out because work done has diff. unit for total quantity, diff. activity * Money and man-hours. are common units for all activities are used ## Earned Value Method: * It compares scheduled amount of work with what has actually been performed. * It is done to determine if cost, scheduled, and work accomplished are progressing as planned. ### Terminology: 1. **Budgeted Cost of Work Scheduled (BCWS)** * It is budgeted cost of work scheduled. * It indicates how much work is scheduled to be completed in each period. 2. **Budgeted Cost of Work Performed (BCWP) (EV)** * Budgeted value of work actually performed. * Earn value for work actually completed: * = Σ (Unit Rate x Qty work. Performed) * = Σ (C% completed x BCWS) 3. **Actual Cost of Work Performed (ACWP)** * It is actually amount spent on work completed. * It could be less or more than earned value. 4. **Scheduled Variance (SV)** * SV = (BCWP - BCWS) (EV-PV) * SV > 0 --> Ahead of Schedule * SV < 0 --> Behind Schedule * SV = 0 --> On schedule * It compares work completed vs. work performed. * It indicates whether the project is behind or ahead of the project. 5. **Cost Variance (CV)** * CV = (BCWP - ACWP) * CV > 0 --> Under budget * CV < 0 --> Over budget * CV = 0 --> On budget * It compares value of work completed vs how much was actually spent in the project. * It shows that the project is behind or ahead, or above or under budget. ### Schedule Performance Index (SPI) * SPI = BCWP / BCWS * SPI > 1 --> Ahead of Schedule * SPI < 1 --> Behind Schedule * SPI = 1 --> On Schedule * It shows whether the project progress is ahead, behind, or on schedule. ### Cost Performance Index (CPI) * CPI = BCWP / ACWP * CPI > 1 --> Under budget * CPI < 1 --> Over budget * CPI = 1 --> On budget * It shows whether the project is over budget or under budget. ### Project Cost Variance at Completion * ACWP - EAC ### Estimate at Completion (EAC) * EAC = BAC / CPI ### Revised Project Completion Budget based on current CPI ## EVM-Step wise: 1. **Step-1:** Calculate BCWS for each period 2. **Step-2:** For update period, calculate BCWP from field measurement 3. **Step-3:** At update period find ACWP from all accounts. 4. **Step-4:** Compare BCWP and ACWP 5. Forecast EAC ## EVA' * EVA' is a comprehensive approach for monitoring a project at the macro level. * The unit used for EVA is money or man-hours. The image shows a notebook with handwritten notes and calculations. The notes are related to project management. They discuss the concepts of Earned Value Method, Schedule Variance and Cost Variance. The notes also include diagrams and graphs that illustrate the concepts.