Control

The evaluation of a project is done by focusing on the deviation between the Performance Measurement Baseline and the results, evaluating by means of the Earned Value, and estimating the cost and period upon completion of the project at regular intervals. The evaluation is made based on the following 3 elements, in combination with one or more of the following: variance analysis, performance and trend analysis.

• Budgeted Cost of Work Scheduled (BCWS): Period budget (BCWS)

• Budgeted Cost of Work Performed (BCWP): Earned value (BCWP)

• Actual Cost of Work Performed (ACWP): Result spent cost (ACWP)

In order to evaluate the situation appropriately, it is required that the monitoring of the project should be made by changing the level of evaluation at regular intervals and in stages. With regard to accounting, while the project information is collected, the levels for the purpose of management, such as "each CAP level", "summary level", "project total", etc. are set for each month, to monitor the project.

■ Variance analysis

The differences of the costs, and of the schedules are put into numerical values by means of the earned value (BCWP), to represent them as "Cost Variance (CV)" and "Schedule Variance (SV)*"

■ Performance

The performance of the cost and the schedule is put into numerical values by means of the earned value (BCWP or EV), to represent them as SPI (Schedule Performance Index) and CPI (Cost Performance

Index).

When evaluating performance, the improvement of SPI and the improvement of CPI do not have the same meaning, and it often can be seen that the improvement measures of SPI brings about cost impact, affecting CPI greatly. In devising the improvement measures, the judgment of management is requested.

■ Trend analysis

By representing whether the progress and efficiency of the project is improving or deteriorating on the time axes, trends can be indicated.

• Example of display

In order to grasp the status of the project easily, a combined presentation of the curve of accumulated rate of attainment and the graph of accumulated difference is effective. Table 4-5-32 shows the "Performance Curve & CV/SV Trend Report", and Table 4-5-33 shows the "Performance Curve & CPI/SPI Trend Report".

Unit: Million yen 120

Jan Feb Mar Apr May Jun Jul Aug Sep

Unit: Million yen 120

BC

3WS \

/

,CWf

D

/>

/

\

V

/

/

CWF

3

Jan Feb Mar Apr May Jun Jul Aug Sep

Unit: Million yen

Jan Feb Mar Apr May Jun Jul Aug Sep

Unit: Million yen

SV /

\

\

/

\

c

—c

V

Jan Feb Mar Apr May Jun Jul Aug Sep

Table 4-5-32: Performance Curve & CV/SV Trend Report

Index

Index

SPI

\

V-

/

/

<

^CPI

1

Jan Feb Mar Apr May Jun Jul Aug Sep

Jan Feb Mar Apr May Jun Jul Aug Sep

Table 4-5-33: shows the "Performance Curve & CPI/SPI Trend Report

■ Forecast completion

By means of the cost schedule performance, the estimated cost and estimated period at completion of the project can be obtained.

• Forecast of the final cost

The final estimated cost (EAC: Estimation at Completion) of the project can be obtained from CPI by means of the following equation.

EAC = - + Cost incurred already

BAC-BCWP

= Budget at Completion (BAC)

(Note) Budget at Completion: The amount of budget at the time of completion Estimate to Complete: The amount of estimation hereafter up to the completion

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