Presentation on theme: " Costs are planned, measured, analyzed and controlled in terms of project activities. Expenditure for any activity is incurred evenly over the duration."— Presentation transcript:
Costs are planned, measured, analyzed and controlled in terms of project activities. Expenditure for any activity is incurred evenly over the duration of the activity. Budgeted cost of the activity is earned value. When activity is complete it is assumed to earn value for project equivalent to its budgeted cost. Project progresses track is kept of actual value earned and also actual cost.
It is the % of the total cost budgeted against the total cost incurred
In case Actual Expenditure incurred for completion of an activity exceeds its budgeted cost, the project does not earn any additional benefit since activity parameters are well specified. The variance indicated cost over-run
CV= ACWP – BCWP Cost Variance CPI = BCWP / ACWP Cost Performance Index SV = BCWP – BCWS Schedule Variance SPI = BCWP / BCWS Schedule Performance Index TV = (Date of Review) – (Date on which BCWP = BCWS ) Time Variance ECP Index = BCTW /(ACWP + ACC) Estimated cost of performance index
Cost over – run ->When the cost incurred is more than the value of work done. Cost under – run -> When the cost incurred is less than the value of work done. CV <1 = cost over run Time over-run -> project is behind schedule Time under-run -> project is ahead of schedule SV <1 = time over run