Monitoring Project Costs

Use one or more of the following techniques to monitor and adjust costs so you can continue to work within your budget:

• Display specialized views and tables to review project costs.

• Adjust the schedule to reduce costs.

• Adjust assignments to reduce costs.

For more information about monitoring and adjusting costs to achieve a specific budget, see "Reducing Project Costs" on page 267.

Using baseline information you saved, you can review your current costs and compare them with baseline costs. For example, you can see baseline costs for tasks (including their resource costs) next to their scheduled costs, based on actuals you entered. Then, you can review the variances between the baseline and scheduled cost. The cost variance is calculated as follows:

(Scheduled/Current) Cost - Baseline Cost = Cost Variance

Tip Evaluate your cost variances and performance with earned value analysis

You can use earned value calculations, such as the Budgeted Cost of Work Scheduled (BCWS) and Cost Variance (CV) earned value fields to analyze your project performance against the budget so far.

For more information, see "Analyzing Progress and Costs Using Earned Value" on page 401.

Reviewing Overall Cost Totals

There are two ways to review your overall cost totals, as follows:

• Review project statistics. Click Project, Project Information and then click the Statistics button. Under Cost, review the current, baseline, actual, and remaining cost for the project. You can also click Project Statistics on the Tracking toolbar.

• Add the project summary task row. In the Gantt Chart or other task sheet, click Tools, h Options and then click the View tab. Select the Show Project Summary Task check box. -2 Summary totals for task information in the current table are displayed in the project J: summary task row at the top of the sheet. If a table containing cost information is applied, the project summary task row shows project cost totals.

Microsoft Office Project 2003 Inside Out Reviewing Cost Variances

Use the Cost table to review the differences between your original baseline costs and your currently scheduled costs. The Cost table includes fields containing baseline costs, total scheduled costs, actual costs, remaining costs, and cost variances. To apply the Cost table:

1 Display the Gantt Chart or other task sheet.

2 Click View, Table, Cost.

The Cost table is applied to the current view (see Figure 11-11).

Rolled up summary costs

Figure 11-11. Apply the Cost table to a task sheet to see the most important cost data for tasks.

With the project summary task row applied, you can also review rolled up cost totals.

There's also a cost table for resources, which includes cost information for all the resource's assignments. With the Resource Sheet or Resource Usage view displayed, apply the Cost table. The Resource Cost table includes the baseline cost, scheduled cost, actual cost, remaining cost, and cost variance for all the resource's assignments (see Figure 11-12).

Resource Name

Cost

Baseline Cost

Variance

Actual Cost

Remaining

1

Eva Corets

$3,360.00

$2,640.00

$720.00

$2,880.00

$480.00

2

Clair Hector

$5,280.00

$5,060.00

$220.00

$1,595.00

$3,685.00

3

I do Ben-Sachar

$8,820.00

$7,380.00

$1,440.00

$7,065.00

$1,755.00

4

David Darber

$20,640.00

$15,840.00

$4,800.00

$3,600.00

$17,040.00

5

Testers

$8,400.00

$8,400.00

$0.00

$0.00

$8,400.00

6

Trainers

$8,960.00

$8,960.00

$0.00

$0.00

$8,960.00

7

Technical communicators

$12,768.00

$12,768.00

$0.00

$0.00

$12,768.00

8

Deployment team

$3,840.00

$3,840.00

$0.00

$0.00

$3,840.00

Figure 11-12. Apply the Cost table to a resource sheet to see the most important cost data for resources.

Reviewing Overbudget Costs

You can apply a filter to a task or resource sheet to see only those tasks or resources associated with overbudget costs, as follows:

1 Display the view and apply the table that contains the information you want to review in the context of overbudget costs.

2 Click Project, Filtered For, More Filters.

3 In the More Filters dialog box, click Cost Overbudget and then click Apply.

Cost fields

Task Name

Fixed Cost

Fixed Cost Accrual

Total Cost

Baseline

Variance

Actual

Remaining

0

0 Software Development

$0.00

Prorated

$72,068.00

$64,888.00

$7,180.00

$15,140.00

$56,928.00

1

El Scope

$0.00

Prorated

$1,380.00

$1,600.00

($220.00)

$1,160.00

$220.00

2

Determine project scope

$0.00

Prorated

$480.00

$240.00

$240.00

$480.00

$0.00

3

Secure project sponsorship

$0.00

Prorated

$240.00

$480.00

($240.00)

$240.00

$0.00

4

Define preliminary resources

$0.00

Prorated

$220.00

$440.00

($220.00)

$110.00

$110.00

5

Secure core resources

$0.00

Prorated

$440.00

$440.00

$0.00

$330.00

$110.00

6

Scope complete

$0.00

Prorated

$0.00

$0.00

$0.00

$0.00

$0.00

7

E Analysis/Software Requirement

$0.00

Prorated

$7,620.00

$5,860.00

$1,760.00

$3,240.00

$4,380.00

8

Conduct needs analysis

$0.00

Prorated

$2,520.00

$1,800.00

$720.00

$1,890.00

$630.00

9

Draft preliminary software specif

$0.00

Prorated

$1,440.00

$1,080.00

$360.00

$720.00

$720.00

10

Develop preliminary budget

$0.00

Prorated

$880.00

$880.00

$0.00

$440.00

$440.00

Rolled up summary costs

If you prefer to see all tasks or resources, but have the overbudget tasks or resources highlighted, click Highlight instead.

Microsoft Project filters for any tasks or resources whose scheduled or actual costs are higher than the baseline costs.

4 Review the tasks or resources to analyze the extent of the cost overages.

5 When you finish, show all tasks again by clicking the Filter tool on the Formatting toolbar and then clicking All Tasks.

Reviewing Cost Performance Using Earned Value Analysis

If you saved a baseline and are entering actuals, you can evaluate current cost and schedule performance using earned value calculations. To generate most earned value information, you must have the following items in your project plan:

• A saved baseline

• Resources assigned to tasks

• Costs associated with assigned resources

• Actual progress information

To review earned value information, follow these steps:

1 Display the Gantt Chart or other task sheet.

2 Click View, Table, More Tables.

3 Click Earned Value, Earned Value Cost Indicators, or Earned Value Schedule Indicators, depending on the type of earned value information you want to review (see Figure 11-13).

Task Name

BCWS

BCWP

cv

cv%

CPI

BAC

EAC

VAC

TCPI

0

0 Software Development

$4,300.00

$2,915.00

($195.00)

-6%

0.94

$64,000.00

$69,226.71

($4,340.71)

1

1

□ Scope

$1,600.00

$1,430.00

$390.00

27%

1.38

$1,600.00

$1,163.64

$436.36

0.3

2

Determine project scope

$240.00

$180.00

($180.00)

-100%

0.5

$240.00

$480.00

($240.00)

-0.5

3

Secure project sponsorshii

$480.00

$480.00

$240.00

50%

2

$480.00

$240.00

$240.00

0

1

Define preliminary resourci

$440.00

$440.00

$330.00

75%

4

$440.00

$110.00

$330.00

0

5

Secure core resources

$440.00

$330.00

$0.00

0%

1

$440.00

$440.00

$0.00

1

6

Scope complete

$0.00

$0.00

$0.00

0%

0

$0.00

$0.00

$0.00

0

7

E Analysis/Software Require

$2,700.00

$1,485.00

($585.00)

-39%

0.72

$5,860.00

$8,168.48

($2,308.48)

1.15

8

Conduct needs analysis

$1,800.00

$1,350.00

($540.00)

-40%

0.71

$1,800.00

$2,520.00

($720.00)

-5

9

Draft preliminary software

$900.00

$135.00

($45.00)

-33%

0.75

$1,080.00

$1,440.00

($360.00)

1.05

10

Develop preliminary budget

$0.00

$0.00

$0.00

0%

0

$880.00

$880.00

$0.00

1

11

Review software specific?

$0.00

$0.00

$0.00

0%

0

$400.00

$400.00

$0.00

1

Figure 11-13. The Earned Value Cost Indicators table displays earned value fields related to budget performance.

Tip See all available earned value fields

You can see a list of all earned value fields available in Microsoft Project. Click Help, Microsoft Project Help (or press F1). In the Search For box, type fields and then press Enter. Click Earned Value Fields. The list of all available earned value fields appears in a separate Help window.

Click a field name to open a Help topic that gives a description of each field, how it's calculated, its best uses, and an example of its use.

Table 11-1 lists the default contents of each of the three earned value tables.

Table 11-1. Earned Value Tables

Table name

Included fields

Earned Value

BCWS (Budgeted Cost of Work Scheduled)

BCWP (Budgeted Cost of Work Performed)

ACWP (Actual Cost of Work Performed)

SV (Schedule Variance)

CV (Cost Variance)

EAC (Estimate At Completion)

BAC (Budget At Completion)

VAC (Variance At Completion)

Earned Value Cost Indicators

BCWS (Budgeted Cost of Work Scheduled)

BCWP (Budgeted Cost of Work Performed)

CV (Cost Variance)

CV% (Cost Variance Percent)

CPI (Cost Performance Index)

BAC (Budget At Completion)

EAC (Estimate At Completion)

VAC (Variance At Completion)

TCPI (To Complete Performance Index)

Earned Value Schedule Indicators BCWS (Budgeted Cost of Work Scheduled)

BCWP (Budgeted Cost of Work Performed)

SV (Schedule Variance)

SV% (Schedule Variance Percent)

SPI (Schedule Performance Index)

For more information about analyzing project performance with earned value, see "Analyzing Progress and Costs Using Earned Value" on page 401.

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