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BUDGET PLANNING - Coggle Diagram
BUDGET PLANNING
Budget Baseline and Project Cost Chart
- Is usually shown graphically, illustrating the cumulative planned spending
- Typical shape for the budget is s-shaped with less spending at the beginning and end project.
Earned Value
- The progress is compared against the baseline to determine whether project is ahead of or behind plan.
- Percent complete can be difficult to measure use rules.
Cost Variance : CV
- Difference between the earned value and the actual cost is the cost variance
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If positive , it achieving more than predicted for the money
if zero, it right on the plan
If negative, the achieving less than predicted for the money
Schedule Variance : SV
- Difference between planned and actual progress
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Cost Performance Index : CPI
- Compares the budget spent to date with progress to date
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Schedule Performance Index : SPI
- Compared progress on the scope to spending
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- SPI less than one indicates the project is behind schedule
- SPI of the one right on schedule
- SPI greater than one the project is ahead of schedule
Estimated Cost to Complete the project : ETC
- The formula to use depends on what the PM expects with regard to future project costs and whether the original budget assumptions remain valid
If past variances are not expected to continue
If past variances are expected to continue at the same level
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