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CH 10: Cost control - Coggle Diagram
CH 10: Cost control
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Benefits EVMS
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The EVMS is an early warning system allowing for early identification of trends and variances from the plan. This allows project manager sufficient time to make course corrections in small increments. It is usually easier to correct small variances as
opposed to large variances.
Therefore, the EVMS should be used continuously throughout the project in order
to detect the variances while they are small and possibly easy to correct.
Large variances are more difficult to correct and run the risk that the cost to correct the large variance may displease management to the point where the project may be canceled.
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purpose of control
- A verification process accomplished by the comparison of actual performance to date with the predetermined plans and standards set forth in the planning phase. The comparison serves to verity that:
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➢ The performance standards are, in fact, a reliable
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- Assist in decision-making.
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❑ These reports, supplied to the managers and the doers, provide three
useful results:
Feedback to management, the planners, and the doers
Identification of any major deviations from the current program plan,
schedule, or budget
The opportunity to initiate contingency planning early enough that cost, performance , and time requirements can undergo corrected action without loss of resources.
Define Control
Cost control is equally important to all companies, regardless of size.