Tood Value Analysis In Project Management

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1. Overview (use case) The earned value analysis is a methodology that helps the project manager and staff in their decision making by providing the values of scope, time and cost. Thanks to those values the possibility to calculate other values like cost -, schedule variance and performance indices, but also forecasting of the project future cost and schedule at completion becomes possible. More detailed description of those values can be found in the latter chapters. This values also gives an early outlook of the project to the management and its expectation through the performance that the project has made until that moment. This information can help the project manager in his decision and may show the problem areas that need correction…show more content…
Performance measurement baseline is a precondition that allows the project to use earned value analysis. Performance measurement baseline consists of three constraints which are time, cost and scope. Each of those constraints that are entrenched into the project management plan must be taken into consideration during the planning process and must contain all the information about the cost, schedule and scope which are the needs of the customer. [1] Those integrated baselines are usually located in their specified work breakdown structure elements and the needs of the customer must be considered and written down in a control account plan which is also known as CAP. Sub-projects, project teams, or subdivisions are the possible way to interpret control account plans. Those control account plans are also to be placed in the work breakdown structure elements and the measurement of the earned value will be calculated in their specified control account plans. The total project baseline is the sum of the control account plans. [2, p. 18] All of these have to be accepted by the stakeholders and should be written down in a…show more content…
Planned Value (PV)/ Planned Cost(PC) Planned Value also known as Planned Cost is a "time- phased budget baseline" [3, p. 200] and was also known as budgeted cost of work schedule (BCWS) [3, p. 200]. Figure 1: Planned Value and Budget at Completion [4, p. 13] This Value describes as can be seen in figure 1 the budget that is given to a task at a defined time/schedule. To be able to access this value the project tasks, activities or processes which lead to a successful project must be determined first. The scope of the tasks will be determined or estimated which can be converted to a cost value. Cost value shows the value of that task or activity for the project. This cost will occur when the task arises in the project schedule. [4, p. 13] Planned Value is also known as an "s curve" because the curve has some characteristic of a s. [4, p. 13] 2.3. Budget at completion (BAC) Budget at completion is the total expense that the project should cost at the end. It is also the last and the highest point of the cumulative planned value. [4, p. 13] Budget at completion can be found in the figure 1. 2.4. Actual Cost

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