PMP Trainingcost management

1、7-1source: pmbok guide 1996 1999 robbins-gioia, inc. pmp preparation training cost management chapter7 7-2source: pmbok guide 1996 1999 robbins-gioia, inc. project cost management resource planning cost estimating cost budgeting cost control processes required to ensure the project is completed with

2、in the approved budget 7-3source: pmbok guide 1996 1999 robbins-gioia, inc. cost management 7.1 resource planning planning 7.3 cost budgeting 7.4 cost control controlling 7.2 cost estimating 7-4source: pmbok guide 1996 1999 robbins-gioia, inc. resource planning determining physical resources needed

3、(i.e., material, equipment, and people) and number of resources required to perform the project activities 7-5source: pmbok guide 1996 1999 robbins-gioia, inc. resource planning inputs scope statement wbs resource pool description organizational policies historical information tools always scheduled

4、 to occur in the future task 1 task 2 task 4 task 5 task 3 work packages planning packages work packages detailed, short-span tasks or material items; required to accomplish the ca objectives; typically for the near term control account elements cost control 7-34source: pmbok guide 1996 1999 robbins

5、-gioia, inc. performance measurement baseline (pmb) the plan against which actual performance can be compared based on budgets assigned to scheduled segments of work build pmb by summing the bcws for all control accounts, by reporting period budget at completion (bac) equal to the cumulative bcws fo

6、r the total project cost control 7-35source: pmbok guide 1996 1999 robbins-gioia, inc. time-phased budget performance measurement baseline (pmb) 0 500 1000 1500 2000 2500 3000 3500 4000 4500 janfebmaraprmayjun reporting period bcws $k bac cost control 7-36source: pmbok guide 1996 1999 robbins-gioia,

7、 inc. work schedule to be accomplished budgeted cost of work scheduled (bcws) performance measurement baseline 0 10000 20000 30000 40000 50000 6000 0 70000 80000 januaryfebruarymarchaprilmayjunejuly current bcws bac cost control bcws january0 february2500 march8000 april13000 may42000 june62000 july

8、70700 7-37source: pmbok guide 1996 1999 robbins-gioia, inc. budgeted value of completed or in-process work performance measurement baseline 0 10000 20000 30000 40000 50000 60000 70000 80000 januaryfebruarymarchaprilmayjunejuly current bcwp bcws bcwsbcwp january00 february25003600 march80008000 april

9、1300010000 may4200038000 june62000 july70700 budgeted cost of work performed (bcwp) cost control 7-38source: pmbok guide 1996 1999 robbins-gioia, inc. actual cost of work performed (acwp) actual value of completed or in-process work performance measurement baseline 0 10000 20000 30000 40000 50000 60

10、000 70000 80000 januaryfebruarymarchaprilmayjunejuly current bcwp bcws acwp cost control bcwsbcwpacwp january000 february250036006000 march800080008000 april13000100008000 may420003800048000 june62000 july70700 7-39source: pmbok guide 1996 1999 robbins-gioia, inc. schedule variance comparing the bcw

11、p, the amount originally budgeted for the work that has been completed or is in-process, to the bcws, the amount budgeted for the work that was planned to have been accomplished sv = bcwp bcws a negative result means less work has been performed than was planned cost control 7-40source: pmbok guide

12、1996 1999 robbins-gioia, inc. sv example bcws = $42,000 bcwp = $38,000 acwp = $48,000 sv = bcwp bcws = $38,000 $42,000 = - $4,000 sv% = sv / bcws =- $4000 / $42,000 = - 0.095 = - 9.5% cost control 7-41source: pmbok guide 1996 1999 robbins-gioia, inc. cost variance comparing the amount originally bud

13、geted for the work completed or in-process, the bcwp, to the actual costs of that work, the acwp cv = bcwp acwp a negative cv means more dollars were spent to accomplish the work than was planned cost control 7-42source: pmbok guide 1996 1999 robbins-gioia, inc. cost variance example bcws = $42,000

14、bcwp = $38,000 acwp = $48,000 cv = bcwp - acwp = $38,000 $48,000 = - $10,000 cv% = cv / bcwp = - $10,000 / $38,000 = - 26% cost control 7-43source: pmbok guide 1996 1999 robbins-gioia, inc. performance indices dfn: cost- and schedule-performance efficiency calculations; expressed in $ cost performan

15、ce index (cpi) cpi = bcwp/acwp schedule performance index (spi) spi = bcwp/bcws cost control 7-44source: pmbok guide 1996 1999 robbins-gioia, inc. cpi example bcws = $42,000 bcwp = $38,000 acwp = $48,000 cpi = bcwp / acwp = $38,000 / $48,000 = 0.79 $0.79 worth of work was actually done for each $1.0

16、0 spent cost control 7-45source: pmbok guide 1996 1999 robbins-gioia, inc. spi example bcws = $42,000 bcwp = $38,000 acwp = $48,000 spi = bcwp / bcws = $38,000 / $42,000 = 0.90 $0.90 worth of work has been done for each $1.00 worth of work that was planned to be done cost control 7-46source: pmbok g

17、uide 1996 1999 robbins-gioia, inc. estimate at completion (eac) dfn: the managements assessment of the cost of the project at completion after variance analysis, the estimated cost at completion is determined cost control 7-47source: pmbok guide 1996 1999 robbins-gioia, inc. eac example one methodol

18、ogy: eac = bac / cpi bac = $80,000 cpi = 0.79 eac = $80,000 / 0.79 = $101,265 cost control 7-48source: pmbok guide 1996 1999 robbins-gioia, inc. variance at completion bac = $80,000 eac = $101,265 vac = bac eac = $80,000 $101,265 = $21,265 based on past performance, project will exceed planned budge

19、t by $21,265 cost control 7-49source: pmbok guide 1996 1999 robbins-gioia, inc. to complete performance index (tcpi) work remaining / cost remaining tcpi = (bac bcwp) / (eac acwp) = ($ 80,000 $ 38,000) / ($ 101,265 $ 48,000) = $ 42,000 / $ 53,265 = 1.4 cost control 7-50source: pmbok guide 1996 1999

20、robbins-gioia, inc. earned value examples bcwsbcwpacwp $1$1$1on scheduleon cost $2$2$1on scheduleunder cost $1$1$2on scheduleover cost $1$2$2ahead of scheduleon cost $1$2$3ahead of scheduleover cost $1$2$1ahead of scheduleunder cost $3$2$1behind scheduleunder cost $2$1$3behind scheduleover cost $2$1

21、$1behind scheduleon cost cost control 7-51source: pmbok guide 1996 1999 robbins-gioia, inc. example bcwsbcwp acwpeac bac 100125 75600 560 125100 100850 800 75 75 75700560 100 75 100570 600 cost control 7-52source: pmbok guide 1996 1999 robbins-gioia, inc. sample cost problem bac = $ 40k bcwp = $ 20k

22、 bcws = $ 28k acwp = $ 26k calculate % of work scheduled % of budget spent % of work accomplished cost variance schedule variance cost control 7-53source: pmbok guide 1996 1999 robbins-gioia, inc. sample solution calculate % of work scheduledbcws / bac = $ 28k / $ 40k = 70 % % of budget spentacwp /

23、bac = $ 26k / $ 40k = 65 % % of work accomplished bcwp / bac = $ 20k / $ 40k = 50 % cost variancebcwp acwp = $ 20k $ 26k = - $ 6k schedule variance bcwp bcws = $ 20k $ 28k = - $ 8k cost control 7-54source: pmbok guide 1996 1999 robbins-gioia, inc. summary review questions 7-55source: pmbok guide 199

24、6 1999 robbins-gioia, inc. case 1 bcws = $ 1,860 bcwp = $ 1,860 acwp = $ 1,860 this is the ideal situation, where everything goes according to plan. 7-56source: pmbok guide 1996 1999 robbins-gioia, inc. case 2 bcws = $ 1,900 acwp = $ 1,700 in this case, without earned value measurements, it appears

25、were in good shape. expenditures are less than planned. spending variance = - $ 200 7-57source: pmbok guide 1996 1999 robbins-gioia, inc. case 2 bcws = $ 1,900 bcwp = $ 1,500 acwp = $ 1,700 but with ev measurements, we see.$400 worth of work is behind schedule in being completed; i.e., we are 21 per

26、cent behind where we planned to be. sv = bcwp bcws = - $ 400 sv % = sv / bcws x 100 = - 21 % 7-58source: pmbok guide 1996 1999 robbins-gioia, inc. case 2 bcws = $ 1,900 bcwp = $ 1,500 acwp = $ 1,700 in addition, we can see. “actuals” exceed “value earned” (bcwp), i.e., $1,500 worth of work was accom

27、plished but it cost $1,700 to do so. we have a $200 cost overrun (i.e., 13% over budget) . cv = bcwp acwp = - $ 200 cv % = cv / bcwp x 100 = - 13 % 7-59source: pmbok guide 1996 1999 robbins-gioia, inc. case 2 bcws = $ 1,900 bcwp = $ 1,500 acwp = $ 1,700 this means only 79 cents worth of work was don

28、e for each $1.00 worth of work planned to be done. and, only 88 cents worth of work was actually done for each $1.00 spent spi = bcwp / bcws = $ 0.79 cpi = bcwp / acwp = $ 0.88 7-60source: pmbok guide 1996 1999 robbins-gioia, inc. case 2 bcws = $ 1,900 bcwp = $ 1,500 acwp = $ 1,700 this is the worst

29、 kind of scenario, where all performance indicators are negative. sv = - $ 400; spi = 0.79 cv = - $ 200; cpi = 0.88 7-61source: pmbok guide 1996 1999 robbins-gioia, inc. bcws = $ 2,600 bcwp = $ 2,400 acwp = $ 2,200 in this case there is bad news and good news. case 3 7-62source: pmbok guide 1996 199

30、9 robbins-gioia, inc. bcws = $ 2,600 bcwp = $ 2,400 acwp = $ 2,200 the bad news is that our work efficiency is a bit low; were getting only 92 cents of work done on the dollar. as a result, we are behind schedule. spi = 0.92 sv = - $ 200; sv % = - 8 % case 3 7-63source: pmbok guide 1996 1999 robbins

31、-gioia, inc. bcws = $ 2,600 bcwp = $ 2,400 acwp = $ 2,200 the good news is that were under-running our budget. were getting $1.09 worth of work done for each $1.00 were spending. cv = + $ 200; cv % = + 8 % cpi = 1.09 case 3 7-64source: pmbok guide 1996 1999 robbins-gioia, inc. case 4 bcws = $ 1,700

32、bcwp = $ 1,500 acwp = $ 1,500 in this case, the work is not being accomplished on schedule. sv = - $ 200; sv % = - 12 % spi = 0.88 7-65source: pmbok guide 1996 1999 robbins-gioia, inc. case 4 bcws = $ 1,700 bcwp = $ 1,500 acwp = $ 1,500 .but the cost of the work accomplished is just as we budgeted.

33、cv = $ 0.00 cpi = 1.00 7-66source: pmbok guide 1996 1999 robbins-gioia, inc. case 5 bcws = $ 1,400 bcwp = $ 1,600 acwp = $ 1,400 a positive scenario; right? but is it because we are out-performing our learning-curve standards or because we planned too pessimistically? 7-67source: pmbok guide 1996 19

34、99 robbins-gioia, inc. case 5 bcws = $ 1,400 bcwp = $ 1,600 acwp = $ 1,400 here in this case, we are getting work done at 114 percent efficiency. spi = 1.14 cpi = 1.14 7-68source: pmbok guide 1996 1999 robbins-gioia, inc. case 5 bcws = $ 1,400 bcwp = $ 1,600 acwp = $ 1,400 .work is ahead of schedule

35、 by 14 percent and under-running cost by 12.5%. sv = + $ 200; sv % = + 14 % cv = + $ 200; cv % = + 12.5 % 7-69source: pmbok guide 1996 1999 robbins-gioia, inc. case 6 bcws = $ 2,000 bcwp = $ 2,200 acwp = $ 2,400 in case 6, work is being done efficiently, but a cost overrun is occurring. spi = 1.10 c

36、v = - $ 200; cv % = - 9 % 7-70source: pmbok guide 1996 1999 robbins-gioia, inc. case 7 bcws = $ 2,200 bcwp = $ 2,400 acwp = $ 2,400 in case 7, work is being done efficiently, and costs are right on target. spi = 1.09 cv = $ 0.00 7-71source: pmbok guide 1996 1999 robbins-gioia, inc. case 8 bcws = $ 2

37、,000 bcwp = $ 2,000 acwp = $ 2,200 see if you can analyze this one! sv = bcwp bcws sv % = sv / bcws cv = bcwp acwp cv % = cv / bcwp spi = bcwp / bcws cpi = bcwp / acwp 7-72source: pmbok guide 1996 1999 robbins-gioia, inc. case 8 bcws = $ 2,000 bcwp = $ 2,000 acwp = $ 2,200 were on schedule. but in o

38、rder to be on schedule, its costing us $1.00 to do each 91-cents worth of work. theres a $200 overrun as a result. sv = $ 0.00 cv = - $ 200; cpi = 0.91 7-73source: pmbok guide 1996 1999 robbins-gioia, inc. case 9 bcws = $ 1,700 bcwp = $ 1,500 acwp = $ 1,900 ok, see how you do with this one! sv = bcwp bcws sv % = sv / bcws cv = bcwp acwp cv % = cv / bcwp spi = bcwp / bcws cpi = bcwp / acwp 7-74source: pmbok guide 1