Professional Documents
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W1 W2 W3 W4 W5 W6 W7 W8 W9 W10
$1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
W1 W2 W3 W4 W5 W6 W7 W8 W9 W10
$1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
Planned Value (PV) : The budgeted value of the work Scheduled so far at a specific date
So , at week 4 , we plan to complete 4 houses ( 40% of total houses) , each house costs $ 1000
W1 W2 W3 W4 W5 W6 W7 W8 W9 W10
$1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000
Earned Value (EV) : The planned value of the work completed so far at a specific date
So , at week 4 , we found only 3 houses only completed ( 30% of total houses) , each house
costs $ 1000
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$1500 $1000 $2000 $1500 $1000 $1000 $1000 $1000 $1000 $1000 Actual Cost
$1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 Planned Cost
Actual Cost (AC) : The total expenditure for the work so far at a specific date
So , at week 4 , our plan was to spend $ 4000 ,but actually we spent more – as shown in figure-
Cost Variance (CV) : the difference between what we expected to spend and what was actually spent.
CV = EV-AC
That is meaning , we lost $3000 due to the difference between planned and actual cost
By . Mohammad Salama
6 . Cost Performance Index (CPI)
Cost Performance Index (CPI) : The rate at which the project (or program) performance is meeting cost
expectations during a given period of time.
CPI = EV ÷ AC
That is meaning if we plan to spend $ 1, actually we spent $ 2 , therefore, we will spend the double of our
planned cost by the end of program if no corrective actions will be taken .
By . Mohammad Salama
7 . Schedule Variance (SV)
Schedule Variance (SV) : The difference between where we planned to be in the schedule , and where
we are .
SV = EV - PV
That is meaning we lost $1000 due to the difference between planned and actual productivity
By . Mohammad Salama
8 . Schedule Performance Index (SPI)
Schedule Performance Index (SPI) : The rate at which the project (or program) performance is meeting
schedule expectations up to a point in time.
SPI = EV ÷ PV
That is meaning for every day , we actually perform 75% of what we planned to do .
By . Mohammad Salama
9 . Estimate at Completion(EAC)
Estimate at Completion(EAC) : Projecting the total cost at completion based on project or program
performance up to a point in time.
If we believe the project will continue to spend at the same rate up to now
OR
EAC= BAC + AC - EV
That is meaning according to actual work the expected cost at the end of our program will be $13.333
By . Mohammad Salama
10 . Estimate to Complete (ETC)
Estimate to Completion(ETC) : Projecting how much more will be spent on the project ( or program )
based on past performance.
ETC= EAC- AC
That is meaning according to actual work the expected remaining cost up to the end of our program
will be $7.333
By . Mohammad Salama
11 . Variance at Completion (VAC)
Variance at Completion (VAC) : The difference between what was budgeted and what will actually be
spent.
That is meaning according to actual work , at the end of the program we will spend $ 3,333 more than
what we planned
By . Mohammad Salama
12 . To-Complete Performance Index (TCPI)
To-Complete Performance Index (TCPI) : Performance that must be achieved in order to meet financial
or schedule goals.
That is meaning according to actual work , cost performance index that is should be achieved on the
remaining work to meet the specified management goal = 1.75%
By . Mohammad Salama
Conclusion
BCWS (PV) The budgeted value of the work Scheduled so far at a specific date
BCWP (EV) The planned value of the work completed so far at a specific date
SV The difference between where we planned to be in the schedule , and where we are .
CV The difference between what we expected to spend and what was actually spent.
The rate at which the project (or program) performance is meeting schedule
SPI
expectations up to a point in time
The rate at which the project (or program) performance is meeting cost
CPI
expectations during a given period of time
By . Mohammad Salama
Important definitions
A resource matrix of the organizational breakdown structure with the WBS, which identifies the resources
associated with the control account levels established for the project
By . Mohammad Salama
Important definitions
A Management control point, at which budgets and actual costs are accumulated and compared to earned
By . Mohammad Salama