Download - Project Cost and Schedule Control
![Page 1: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/1.jpg)
Welcome to Project cost and schedule control
Your trainer is
control
Mike Kerrigan
![Page 2: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/2.jpg)
Project Management Basics
The Project manager is responsible for delivering all three
![Page 3: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/3.jpg)
Managing the project
Plan
Do
Check
Act
![Page 4: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/4.jpg)
Completed 1.5 km An example
End of month 2:
Cost?
Schedule?
Completion %?
How is the project doing?Project:
Build 5 km railway
Time allowed: 5 months
Budget: £100,000
![Page 5: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/5.jpg)
Completed 1.5 km An example
End of month 2:
Time passed: 40% of duration
1.5 km of railway completed = 30% of requirement
Spend to date: £38,000 = 38% of budget
How are we doing? 30/38/40% complete?
How is the project doing?
![Page 6: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/6.jpg)
Gantt schedule
![Page 7: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/7.jpg)
Gantt with baseline and Critical Path
![Page 8: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/8.jpg)
Milestone chart
07/01/2011
26/02/2011
17/04/2011
SDR Complete
02/05/2010
21/06/2010
10/08/2010
29/09/2010
18/11/2010
M0 M1 M2 M3 M4 M5 M6
Subsys 1 complete
Subsys 2 complete
Subsys 3 complete
IVV Complete
System Delivered
Acceptance complete
Reference
![Page 9: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/9.jpg)
Traditional monitoring
� Cost:
– What percentage of the budget has been spent?
– What is our estimate to complete?
– How much will it cost at completion?
0
20
40
60
80
100
120
140
1600 2 4 6 8 10
Month
£
Budget
Actual
![Page 10: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/10.jpg)
Back to the example
Km 1 Km 2 Km 3 Km 4 Km 5
BridgeEmbankment
Baseline plan
Project:
Build 5 km of railway
Budgeted cost: £100,000
Delivery timescale: 5 months
Budget £15k
Time 1 mth
Budget £33k
Time 1.5 mth
Budget £15k
Time 0.5 mth
Budget £22k
Time 1.5 mth
Budget £15k
Time 0.5 mth
![Page 11: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/11.jpg)
Where are we?
Embankment
Km 1 Km 2 Km 3 Km 4 Km 5
Bridge
Schedule end of month 2
Value of work planned to be completed:
In month 1 = £15k
In month 2 = (1/1.5 x £33k) = £22k
Planned value = £15k + £22k = £37k
Km 1
Budget £15k
Time 1 mth
Km 2
Budget £33k
Time 1.5 mth
Km 3
Budget £15k
Time 0.5 mth
Km 4
Budget £22k
Time 1.5 mth
Km 5
Budget £15k
Time 0.5 mth
![Page 12: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/12.jpg)
Where are we?
Embankment
Km 1 Km 2 Km 3 Km 4 Km 5
Bridge
Schedule end of month 2
Value of work completed:
Km1 = £15k
Km2 = 50% of £33k = £16.5k
Earned value = £15K + £16.5k = £31.5k (31.5% of total value)
Km 1
Budget £15k
Time 1 mth
Km 2
Budget £33k
Time 1.5 mth
Km 3
Budget £15k
Time 0.5 mth
Km 4
Budget £22k
Time 1.5 mth
Km 5
Budget £15k
Time 0.5 mth
![Page 13: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/13.jpg)
Where are we?
Embankment
Km 1 Km 2 Km 3 Km 4 Km 5
Bridge
Schedule end of month 2
Earned value = £31.5k = 31.5%
Planned value = £37k = 37%
Conclusion: Value of work done is 5.5% less than planned
Behind by £5.5k value of work
Km 1
Budget £15k
Time 1 mth
Km 2
Budget £30k
Time 1.5 mth
Km 3
Budget £15k
Time 0.5 mth
Km 4
Budget £25k
Time 1.5 mth
Km 5
Budget £15k
Time 0.5 mth
![Page 14: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/14.jpg)
Where are we?
Embankment
Km 1 Km 2 Km 3 Km 4 Km 5
Bridge
Costs end of month 2
Earned value = £31.5k = 31.5% of budget
Actual costs = £38k = 38% of budget
Conclusion: Spent 38% of budget doing 31.5% of the work
Overspent by £6.5k
Budget £15k
Time 1 mth
Budget £30k
Time 1.5 mth
Budget £15k
Time 0.5 mth
Budget £25k
Time 1.5 mth
Budget £15k
Time 0.5 mth
![Page 15: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/15.jpg)
How are we doing?
1200
1400
1600
1800
Planned
0
200
400
600
800
1000
0 1 2 3 4 5 6 7 8 9 10 11
Planned
Actual
Earned
![Page 16: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/16.jpg)
How are we doing?
1200
1400
1600
1800
Planned
0
200
400
600
800
1000
0 1 2 3 4 5 6 7 8 9 10 11
Actual
Earned
![Page 17: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/17.jpg)
Estimate at Complete (EAC)
If we continued to perform as we have to date:
EAC = Budget x Actual cost
EarnedEarned
![Page 18: Project Cost and Schedule Control](https://reader034.vdocuments.site/reader034/viewer/2022051412/5496a659b47959654d8b4ff9/html5/thumbnails/18.jpg)
Change
Change in requirements will impact Time and Cost
Impact
Change!