Telecommunications Certificate Program · CSU Project Management Certificate Program. 2 ... •Team...

1

Project Time and Cost Management

Instructor: Lee Varra-Nelson

[email protected]

970-407-9744 or 970-215-4949

CSU Project Management

Certificate Program

2

Agenda• Objectives / Syllabus

• Time Management Processes

• Project Time Management

• Project Cost Management

• Summary

Project Time & Cost Management

3

Time Management Objectives

• Understand basic building blocks of project time management according to PMI and real world.

• Understand the function of the project manager in managing time and schedule on your project.

• Create a Network Diagram from your WBS.

• Know how to calculate critical path.

4

Syllabus – Section 3 (four weeks)

Week

1

• Introductions, course objectives

• Where Time mgmt. processes fit into the process groups

• Time Management processes (PMBOK p.125)

• Activity Definition, Sequencing,

• Activity Resource Estimating and team exercises

• Instructor to hand out assessment - open book & return last night

of class

• Read PMBOK Chapter 6, Time

Mgmt.

Week

2

• Activity Duration Estimating

• Schedule Development

• Schedule Control

• Team Exercises

• Read PMBOK Chapter 7 – Cost

Mgmt.

• Complete Time exercise homework

Week

3

• Finish Schedule Development

• Project Cost Management (PMBOK - Chapter 7)

• Cost Estimating (types of estimating)

• Cost Budgeting (Reserve Analysis and Contingency)

• Team Exercises

• Complete Cost homework before

week 4 of class

Week

4

• Monitoring and Controlling the Project work

• Cost Control (Performance Measurements / Earned Value)

• Project Cost Management Summary

• Turn in final assessment email

answers to [email protected]

• Results will be provided within 2

weeks after completion.

Description Homework

5





• Summary

Project Time Management

6

How Time Management Processes Map to

PMI Process Groups (PMBOK p.70)

Knowledge Area Initiating Planning (21) Execution Controlling Closing

Integration 4.1, 4.2 4.3 4.4 4.5, 4.6 4.7

Scope 5.1, 5.2, 5.3 5.4, 5.5

* Time Mgmt. 6.1, 6.2, 6.3,

6.4, 6.5

6.6

Cost 7.1, 7.2 7.3

Quality 8.1 8.2 8.3

HR 9.1 9.2, 9.3 9.4

Communications 10.1 10.2 10.3, 10.4

Risk 11.1, 11.2, 11.3,

11.4, 11.5

11.6

Procurement 12.1, 12.2 12.3, 12.4 12.5 12.6

* Notice Time Management falls in planning and controlling process groups

7

Where Time Management Processes

fit in?

INITIATING

PLANNING

CONTROLLING EXECUTING

CLOSING

Arrows represent flow of information

(6.1, 6.2, 6.3, 6.4, 6.5)

(6.6)

PMBOK Sections

PMBOK Section

8

Project Management Knowledge Areas

Project

Integration

Mgmt

COMMUNICATIONS

SCOPE

PROJECT

SUCCESS

STAKEHOLDER SATISFACTION

TIME COST QUALITY

Procurement HR RISK

We are here

9





• Summary


10

Project Time Management

“includes the processes required to

ensure timely completion of the

project.”

11

Project Time Management Processes

PMBOK Section 6 (p.123-156)

1. Activity Definition

2. Activity Sequencing

3. Activity Resource Estimating

4. Activity Duration Estimating

5. Schedule Development

6. Schedule Control

12

Activity Definition (6.1, p.127)

• Process to identify the deliverable at the lowest level of the WBS, i.e., “work packages”.

– Includes schedule activities and milestones required to complete deliverables on the project.

– Use “eight to 80 hour rule of thumb” for better management of work packages (when appropriate).

• Work packages are planned (decomposed) into smaller components called schedule activities.

• Provides bases for estimating, scheduling, executing, monitoring/controlling project work.

13

Hierarchy

PROGRAM

PROJECT A PROJECT B

SUB PROJECT SUB PROJECT SUB PROJECT

SUMMARY TASKS

(WORK ITEMS)

SUMMARYTASKS

(WORK ITEMS)

SUMMARY TASKS

(WORK ITEMS)

* WORK

PACKAGES

* WORK

PACKAGES

* WORK

PACKAGES (8-80 hour rule)

- Activities

Note: Activities are also known as Schedule Activities

- Activities - Activities

14

Activity Definition (p.127-129)

• Inputs

• Enterprise Environmental Factors

• Organizational Process Assets

• Project Scope Statement

• Work Breakdown Structure (WBS)

• WBS Dictionary

• Project Management Plan

15

Activity Definition (p.127-129)

•Tools and Techniques• Decomposition

• Rolling Wave Planning

• Templates

• Expert Judgment

• Planning Component

Outputs• Activity List

• Milestone List

• Activity Attributes

• Requested Changes

16

Activity Definition Format

• Suggested format (Post-it note):

Early Start

Late Finish

Early Finish

Late Start Duration

Activity

Id #

17

Team Exercise – Activity Definition

• Break into your teams (take 20 minutes.)

• Pick a new PM for the exercise

• Review your WBS and further define

activities as needed (at least 15 activities)

– Put your project activities on Post-it notes and use action

words (verbs).

– Use “code of accounts” (numbering system).

18

Activity Sequencing (6.2, p.130-135)

“Involves identifying and documenting

logical relationships among schedule

activities.”

• INPUTS

• Project scope statement

• Activity list

• Activity attributes (p.130)

• Milestone list

• Approved change requests

19

Activity Sequencing Tools and Techniques

• Precedence Diagramming Method (PDM)

• Arrow Diagramming Method (ADM)

• Schedule Network Templates

• Dependency Determination

• Mandatory Dependency (i.e., foundation before building)

• Discretionary (preferred logic or “soft” logic)

• External (i.e., building permit before begin building)

• Applying leads and lags

• Lead is negative lag

20

Activity Sequencing Tools

• PDM (aka Activity on Node) •Nodes are activities

•Events are node ends (in the box)•Relationships are node to node pairs

•Four relationships are possible

A B

D

C

End

Start

21

Logical Activity Relationships

Finish to Start (FS) – activity B

can’t start until activity A is

finished (only relationship used in AOA)

Finish to Finish (FF) – B can’t

finish until A finishes (PDM)

Start to Start (SS) – B can start

when A has started (PDM)

Start to Finish (SF) – B can’t

finish until A starts (PDM)

A B

A B

A

B

A B

22

Example - Activity On Node (AON)

Start End

Also known as the Precedence Diagram Method (PDM)

Critical Path

Toast bread t=2 Butter toast t=.5

Boil water t=7 Boil egg t=3

Set table t=2 Pour cereal t=1

23

Relationship of Activities

• Predecessor: An activity that exists on a common logic path with

activity “A” occurring before activity “B”

• Successor: An activity that exists on a common logic path with

the activity “B” occurring after activity “A”

A BActivity “B” is a successor to

activity “A”

Activity “A” is a predecessor to

activity “B”

FS

FS = Finish to Start

24

Activity Sequencing

A BFS +1d

LAG

• Finish-to-Start with lag timeThe successor of the relationship cannot start

until the predecessor finishes and some

passage of time determined by the lag

occurs

Paint the wall Hang the pictures

1d = One Day

25

Activity Sequencing

• Start-to-Start with lag time

The successor of the relationship cannot start

until the predecessor is started and some

passage of time determined by the lag occurs

A

BSS +1d

Lag

Build forms

Pour Cement

26

Activity Sequencing

• Finish-to-Finish

The successor of the relationship cannot finish until

the predecessor is finished

A

B

FFCook

TurkeyCook

Rolls

Dinner is

served

Milestone

27

Activity Sequencing

• ADM (Arrow Diagramming Method

(aka Activity on Arrow (AOA)

– Arrows are events

– Activities are pairs of events

– Relationships are nodes & dummies

– Uses only finish to start dependencies

A BC

DDummies are shown as dotted

lines and have no resources

assigned FE

Start

End

G

28

Example - Activity On Arrow (AOA)

1 3

2

4

5

EndStartBoil water t=7 Boil egg t=3

Also known as Arrow Diagram Method (ADM)

Critical Path

29

Activity Sequencing

• Outputs

- Project schedule network diagram- Diagram of activities & logic relationships

- Activity list (updates)

- Activity attributes (updates)

- Requested change

30

Team Exercise - Activity Sequencing

• Break into your teams (take 20 minutes)

• Lay out your network diagram

• Get flip chart paper and tape the sheets together as needed

• Put your activities in the sequence your team feels is

appropriate

• Add lines (in pencil) between your activities (in relationships)

• PM to present your diagram

31

Activity Resource Estimating (6.3)

• Determining what resources (people,

equip., material) and what quantities

will be needed to perform project

activities.

• INPUTS– Enterprise Environmental Factors

– Organizational Process Assets

– Activity List

– Activity Attributes

– Resource Availability

– Project Management Plan

32

Activity Resource Estimating

• Tools and Techniques– Expert Judgment

– Alternatives Analysis

– Published Estimating Data

– Project Management Software

– Bottoms-Up Estimating

• Outputs– Activity Resource Requirements

– Activity Attributes (updates)

– RBS (Resource Breakdown Structure)

– Resource Calendar (updates)

– Requested Changes

33

Assigning Activities – Example of RAM

Responsibility Assignment Matrix

(RAM)

Sue Don Jose

1.1.3 Revise Plan

1.1.4 Fix the Fence

1.2.3 Get Equipment

1.2.4 Pay for Equipment

Note: should be closely tied to cost estimating process

i.e., per hour rates, overtime rates, etc.

34

Activity Duration Estimating (6.4)

Process of estimating activity duration

• Inputs (p.139)- Enterprise Environmental Factors

- Organizational Process Assets

- Project Scope Statement

- Activity List

- Activity Attributes

- Activity Resource Requirements

- Resource Calendar

- Project Management Plan

- Risk register and Activity cost estimates

35

Activity Duration Estimating

• Tools and Techniques- Expert Judgment

- Analogous Estimating (Top Down, early in the

life cycle, using historical information on

similar projects)

- Parametric Estimating (math model)

- Three-Point Estimates ((P+4M+0)/6)

- Reserve Analysis (Contingency)

• Outputs- Activity Durations Estimates (work periods

usually in days)

- Activity Attributes (updates

36

Team Exercise

Activity Duration Estimating

• Break into your teams (take 30 minutes.)

• Determine the appropriate (best guess) duration estimate for

each project activity • Assumptions (for purposes of this exercise only):

1. Focus on activity estimates for labor only (round hours up to

whole days) and mark in pencil on your post it notes.

2. Estimates for your team members only (subcontractors will

provide bids with their cost estimates separately).

• PM to present total number of days for your project.

37

Schedule Development (6.5)

• Once the network diagram and estimates are complete, it is time to build a schedule (calendar based timeline of when activities need to be completed).

• Inputs– Organizational Process Assets

– Project Scope Statement

– Activity List

– Activity Attributes

– Project Schedule Network Diagrams

– Activity Resource Requirements

– Resource Calendars

– Activity Duration Estimates


- Risk Register

38

Schedule Development

• Tools and Techniques– Schedule Network Analysis

– Critical Path Method

– Schedule Compression (crashing & fast-tracking)

– What-If Scenario Analysis

– Resource Leveling

– Critical Chain Method

– Project Management Software

– Applying Calendars

– Adjusting Leads and Lags

– Schedule Model

39

Duration Compression

• Fast-track the plan – doing activities in

parallel (adds risk to the project)

• Crashing the plan – how to obtain the

greatest amount of compression for the

least in incremental cost (always adds cost

to the project).

• Ways to Crash the project schedule:

• Adding Resources (People)

• Working Overtime or Adding Shifts

• Subcontract Work / Activities

• Expedite Material Deliveries

40


• Tools (continued):

- Critical Path

– The longest activity sequence in the network

(represents the longest path)

– Has zero total float

– Controls the project finish date

– Can be shortened through parallel activity

sequencing

41


• Tools (continued):

- Forward Pass – Network calculations

which determine the earliest dates an

activity can occur

– Early Start –The earliest an activity may

begin as logically constrained by the network

– Early Finish – The earliest date an activity

may finish as logically constrained by the

network

42

Example Schedule Development

Activity Predecessor Duration

Start -- 0

A Start 4

B Start 8

C A 4

D B 1

End C,D 0

Note: Milestone activities always = Zero (0) Duration

Dummy activities are only used on AOA and = 0 Duration

fill in diagram on slide 42

43


44


Start

0 days

D

1 day

End

O days

C

4 days

A

4 days

B

8 days

45

Forward Pass – helps determine

overall length of the project

• Doing the Forward Pass will determine the Early

Start and Early Finish times for each activity

• Early Start for the first activity “A” is usually Zero

• The Early Finish of “A” is calculated by adding the

duration of the “A” to its Early Start (Early Start +

Duration = Early Finish)

• The Early Finish of “A” then becomes the Early

Start for the next activity, and so on…

• Complete the Forward Pass for the entire project

to determine the total project duration

46

Forward Pass

Start

0 days

D

1 day

End

O days

C

4 days

A

4 days

B

8 days

ES EF4 8

8 90 8

9 9

Note: start with 0

0 4

EF = Early start, EF = Early Finish

ES EF

47

Forward Pass - CPM (Critical Path Method)

Start

0 days

D

1 day

End

O days

C

4 days

A

4 days

B

8 days

0 4 4 8

8 90 8

9 9

Note: always start with 0

Critical Path = longest path: Start, B, D, End (=9 days)

48

Forward Pass (add dependency)

Start

0 days

D

1 day

End

O days

C

4 days

A

4 days

B

8 days

0 days

0 4 8 12

8 90 8

12 12Note:

always start with 0

• Now add a dependency from B to C

• Use a dependency line (with 0 duration)

Note: how does this changes impact the Critical Path?

49

Schedule Development Tools

• TOOLS

- Backward Pass – Network calculations

which determine the latest dates each

activity must occur

• Late Start –The latest date an activity may

begin as logically constrained by the network

• Late Finish – The latest date an activity may

finish as logically constrained by the network

50

Backward Pass (Next Step)

• Doing the Backward Pass will determine the Late Start and Late Finish times for each activity in the project.

• Starting with the final activity and working backward, subtract the duration of the last activity from its Late Finish to arrive at its Late Start time (Late Finish - Duration = Late Start) – note: always take the lowest # going back.

• When more than one activity succeeds a given task, the earliest of the Late Start dates of the successor activities is selected to become the Late Finish date.

• The Late Finish is the latest that a given activity may finish without delaying the completion of the project.

• Complete the Backward Pass for the entire project to determine the Critical Path.

51

Backward Pass

Start

0 days

D

1 day

End

O days

C

4 daysA

4 days

B

8 days

Note: start with 05 9

9 9

8 90 8

1 5

LS LF LS LF

LS = Late state, LF = Late finish

LF minus task Duration = LS

52

Schedule Development Tools

(continued)

• Float (Synonymous with Slack)

• Total Float (slack) is the amount of time an activity can be delayed

without delaying the project end date or an intermediary milestone.

• Activities on Critical Path have Zero (0) Float

• To calculate an task or activities float;

• (Late Start - Early Start or Late Finish - Early Finish = Float)

• Free Float (slack) is the amount of time an activity can be delayed

without the early start date of its successor.

• (Early Start B – Early Finish A = Free Float of A)

• Project Float (slack) is the amount of time a project can be delayed

without delaying the externally imposed project completion date

required by the customer, management or date committed by the PM.

53

Calculating Float

Start

D

A

E

F

B

G

H

C

Finish

2

7

6

5

3

1

5

8

15 15

7

0

0

15

9

10

7

7

821

20

15

14

20

20

7

7 15

21

2120

20

1512

129

15

149

10

I

9

21

21

30

30

54


• Outputs (p.149-152)– Project Schedule

– Schedule Model Data

– Schedule Baseline

– Resource Requirements (updates)

– Activity Attributes (updates)

– Project Calendar (updates)

– Requested Changes


– Schedule management plan

Note: see PMBOK figure 6-10 p.150 for good example of project schedule graphic

55

Critical Path Team Exercise

• Break into your teams (take 30 minutes)

• Pick a new PM to manage the team exercise

• Do a forward pass on your activities

• Do a backward pass on your activities

• Calculate float on your activities

• Determine critical path and highlight it

56

Schedule Control (6.6 p.152)

• Concerned with determining current status of project schedule and managing schedule changes.

• Inputs- Schedule Management Plan

- Schedule Baseline (slide 56)

- Performance Reports (slide 57)

- Approved Change Requests

57

Schedule Control

• Schedule Baseline

• Baseline (target) Schedule –

Contains the

approved work scope prior to

progress reporting

• Working Schedule – The

baseline schedule after

progress reporting

58

Schedule Control

• Performance Reports

• Data Date – The starting date of all remaining

work

or “Time Now”

Actual Start – The calendar date that work

actually began

on an activity

Actual Finish – The calendar date that all work

was completed

on an activity

Percent Complete – Derived from and

assessment of the

work in progress

Remaining Duration – Work periods left

59

Schedule Control

• Tools and Techniques

- Progress Reporting- Schedule Change Control System- Performance Measurement- Project Management Software- Variance Analysis- Schedule Comparison Bar Charts

60

Schedule Control

• Schedule Change Control System

• Includes paperwork, tracking systems, and

appropriate

levels of approval

• Is integrated with the overall project change

control system

• Progress Reporting

• Trending, Forecasting, and “What-Ifs"

• Target Variance Analysis

• Schedule Variance Analysis

61

Schedule Control

• Outputs

- Schedule Model Data (updates)- Schedule Baseline (updates)- Performance Measurements- Requested Changes- Recommended Corrective Action- Organizational Process Assets (updates)- Activity List (updates)- Activity Attributes (updates)- Project Management Plan (updates)

62

Schedule Control

• Schedule Baseline updates• Keep stakeholders apprised of schedule updates on a

regular basis.

• What if Scope changes?

• What if Schedule isn’t performing to plan?

63




• Project Cost Management• Summary

Project Cost Management

64

Cost Management Objectives

• Understand basic building blocks of project cost management according to PMI and real world.

• Understand the function of the project manager in managing cost and budget on your project.

• Know the purpose of Earned Value and how to calculate using the key formulas.

65

Project Cost Management

(PMBOK - Chapter 7, p.157-178)

“Includes the Processes Required to

Ensure That The Project Is Completed

Within The Approved Budget”

66

How Cost Management Processes Map to PMI

Process Groups (PMBOK p.70)

Knowledge Area Initia

ting

Planning (21) Execution Controlling Closing

Integration 4.1,

4.2

4.3 4.4 4.5, 4.6 4.7

Scope 5.1, 5.2, 5.3 5.4, 5.5

Time Mgmt. 6.1, 6.2, 6.3, 6.4,

6.5

6.6

* Cost Mgmt. 7.1, 7.2 7.3

Quality 8.1 8.2 8.3

HR 9.1 9.2, 9.3 9.4

Communications 10.1 10.2 10.3, 10.4

Risk 11.1, 11.2, 11.3,

11.4, 11.5

11.6

Procurement 12.1, 12.2 12.3, 12.4 12.5 12.6

•Notice Cost Management falls in planning

and controlling process groups

67

Cost Management Processes

PMBOK Section 7 (p.157-178)

1. Cost Estimating

2. Cost Budgeting

3. Cost Control

68

Cost Estimating (7.1, p.161)

• Involves developing an estimate of the cost of

the resources needed to complete each schedule

activity and looking at alternatives.

• Inputs• Enterprise Environmental Factors

• Organizational Process Assets

• Project Scope Statement

• WBS/WBS Dictionary

• Project Management Plan

-schedule management plan

-staffing management plan

-risk register

69

Cost Estimating

• Tools and Techniques (section 7.1.2)• Analogous Estimating

• Determine Resource Cost Rates

• Bottom-Up Estimating

• Parametric Estimating

• Project Management Software

• Vendor Bid Analysis

• Reserve Analysis

• Cost of Quality

70

Cost Estimating Tools Descriptions

• Tools & Techniques for cost estimating:• Analogous estimating – “Top-Down” estimating, means

using actual cost of previous similar projects as basis for

estimating the current project.

• Parametric modeling – involves using project characteristics

(parameters) in a mathematical model to predict project costs;

e.g., using cost per square foot for residential home

construction.

• Bottom-up estimating – involves estimating the cost of

individual work items and then summarizing (rolling up) the

individual estimates to get a project total.

• Computerized tools – such as project management software

and spreadsheets are widely used to assist with cost

estimating.

71

Cost Estimating

• Outputs- Activity Cost Estimates

- Activity Cost Estimates and

Supporting Detail

- Requested Changes

- Cost Management Plan (updates)

72

Cost Estimating

• Types of Cost Estimates and Ranges of Accuracy

• Order of Magnitude Estimate

(-25% to +75%)

• Budget or Preliminary Estimate

(-10% to +25%)

• Definitive Estimate

(-5% to +10%)

73

Team Exercise - Cost Estimating

• Break into your teams

• Pick a new PM to report findings

• Pick the type of estimating you will use, i.e.,

ROM, Bottom Up, etc.

• Re-estimate your project using work effort

estimates instead of duration.

74

Cost Budgeting (7.2)

• Inputs• Activity Cost Estimates

• WBS / WBS Dictionary

• Project Schedule

• Resource Calendars

• Contract

• Cost Management Plan

75

Cost Budgeting

• Tools and Techniques• Cost Estimating Tools and Techniques

• Outputs• Cost Baseline

76

Contingency Reserves

• Reserve Analysis

• Provides for unforeseeable elements of cost within

the defined project scope (“Known Unknowns”)

• Held inside the project budget

• Reserve does not cover:

• Inflation or cost escalation

• Change in scope

• Change in quality

• Cost overruns due to poor estimates

77

Managerial Reserve

• Allocates and maintains funds for

future situations which are

impossible to predict (“Unknown

Unknowns”)

• NOT to be used to fund bad cost

estimates

• Controlled by upper management

and held outside the project

budget.

78

Cost Baseline

• Establishes a Budget Baseline of costs relative to

time

• Allows comparison, analysis and forecasts of costs• Typically shown graphically comparing budget costs relative to time• Equivalent to Planned Value (budgeted cost of work scheduled) (PV or BCWS) • Excludes:

• Managerial reserves• Fees

79

Team Exercise - Create a Budget

• Break into your teams

• Create your project budget using

your definitive estimates,

contingency reserve and managerial

reserve.

• Pick a new PM to report out to the

class

80

Cost Control (7.3)

• Includes managing the actual changes and influencing

factors that create changes to the cost baseline.

• Inputs

• Cost baseline

• Project funding requirements

• Performance reports

• Work Performance Information

• Approved Change requests

• Project management plan

81

Cost Control

• Tools and Techniques• Cost change control system

• Performance measurement analysis

• Forecasting

• Project performance reviews

• Project management software

• Variance management

82

Cost Control

• Outputs

• Cost estimate (updates)

• Cost baseline (updates)

• Performance measurements

• Forecasted completion

• Requested changes

• Recommended corrective actions

• Organizational process assets (updates)

• Project management plan

83

• Earned Value Technique is a method used to

measure project performance against the project

baseline. Results from an earned value analysis indicate

potential deviation of the project from cost and schedule

baselines.

Cost Control Using Earned Value

84

Who Needs Earned Value?

Project Managers

Team Supervisors

Project Sponsors

Project

Stakeholders

85

Earned Value Terms:

PV = estimated value of work scheduled or planned to be done

EV = estimated value of work accomplished or performed

AC = actual cost of work accomplished or performed

BAC = budget at completion, sum of the total budgets for a project

EAC = estimate at completion, anticipated total cost at project completion

ETC = estimate to completion, expected additional cost needed to complete the project

VAC = variance @ completion, how much over / under budget project is @ completion.

Cost Control Using Earned Value

86

CV = EV-AC negative is over, positive is under budget

SV = EV-PV negative is behind, positive is ahead of schedule

CPI = EV/AC we are getting $____ for every dollar spent

SPI = EV/PV we are progressing at ____% of rate originally planned

EAC = BAC/CPI as of now, how much do we expect the total project to cost (note: there are several formulas to calculate EAC this one is most often asked on the exam. It would be best to memorize all formulas on page 207 of Rita’s exam prep book)

EAC = AC+ (BAC - EV) actual to date plus remaining budget

EAC = AC+ (BAC - EV) / CPI actual to date plus remaining budget modified by performance

ETC = EAC-AC how much more will the project cost

VAR = BAC-EAC how much over or under budget will we be at the end of the project

Formulas to Memorize

Source – Rita’s book page 207

87

Estimate At Completion (EAC)

• Estimate At Completion (EAC) is a forecast of total

project cost based on project performance. EAC

formulas to use:

EAC = AC + ETC (If original estimates were flawed)

EAC = AC+BAC - EV ( If current variances are not typical and are not

projected to continue)

EAC = (AC+(BAC-EV/CPI)) (If current variances are typical of future

variances)

88

Sample Earned Value Performance

Measurement Analysis Chart

EAC

BACVAC

SLIPPAGE

COST

VARIANCE

SCHEDULE

VARIANCE

PV

AC

EV

$

NOW

Time

Cumulative Cost Curve

• Point in time check point

89

Tips to Help Remember EV Formulas

EARNED VALUE CALCULATIONSKEY FORMULAS

CV = EV - AC

CPI = EV / AC

SV = EV - PV

SPI = EV / PV

Percent Complete = EV / BAC * 100

• EV usually always first in the formula

• Variance is always minus (EV – x)

• Indexes always divide (EV / x)

TIPS:

90





• Summary


91

Time & Cost Management Summary

• Know the six time management processes

• And the three cost management processes

• Know that schedule variance is the highest

source of conflict on a project

• Know how to calculate the critical path

• Know that milestones carry zero duration

• Know earned value formulas and

estimating types and ranges of estimates

• Managing the cost and schedule is

essential to the success of the project.

92

Congratulations!

• You have

completed another

section. . .

Telecommunications Certificate Program · CSU Project Management Certificate Program. 2 ... •Team...

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