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Successful Project Management - Applying Best Practices
Successful Project Management - Applying Best Practices
Successful Project Management - Applying Best Practices
$1,400,000
It is about half way through the project. Today Forecast At
we were supposed to have completed exactly Completion
half the deliverables. In fact, we have only (FAC)
$1,200,000
completed 40% of scope originally estimated at
$400,000 (BCWP).
Budget At
We were supposed to have spent $525,000 Completion
$1,000,000 (BCWS) by now, but we’ve spent $675,000 (BAC)
(ACWP) - so are we $150,000 over budget?
$800,000
Actual
$200,000
Plan / Budget
SV Schedule Variance BCWP - BCWS Negative is behind schedule. Positive is ahead of schedule.
EAC Calculation
• This Stage:
o Calculation of performance criteria – indicators of efficiency
o A review of potential future project risks
• Estimating Data Required for EAC and ETC
SPI Schedule Performance Index BCWP / BCWS How efficient is PERFORMANCE of project? Used to predict cost overruns?
3 ACWP + BAC - BCWP Best Case Scenario - using BCWP (which relies upon % complete) $1,275,000
4 ACWP + ((BAC – BCWP) / CPI) Worst Case (includes full project life cycle) $2,161,017
Establishing a New Baseline
Program Original
Budget Budget
$ Resources
New
Baseline
BCWS
ACWP
400
BCWS “Single Point Adjustment”
300 • Eliminates variances
• Establishes new baseline
200
BCWP
100
Revised
▲ Schedule
D A J S D M J S