PROJ586 Course Discussions Week 4

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PROJ586 Course Discussions Week 4
Cost planning starts with the proposal for the project, at which time project costs are…

SKU: PROJ 586 Cost Planning Earned Value Analysis Categories: , Tags: , , ,

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PROJ586 Course Discussions Week 4

PROJ586 Course Discussions Week 4

All Students Posts – 48 Pages 

Cost planning starts with the proposal for the project, at which time project costs are estimated. And for budgeting purposes, it is best to keep the work packages or activities small in terms of scope and duration.  Once your budget is planned and allocated across your work packages, it is critical to monitor and control your project’s cost. What are some of the ways that a project manager can take these budgeting plans and track and compare them to actual data? In what sense is some cost reporting not reflective of the actual work performed? How can a project manager remedy this situation?  Additionally, why is monitoring and controlling the project cost important for the success of the project? What are some key components to monitor the health of the project, as it relates to earned value? How is earned value management different than straight financial accounting?  Please explain the process of performing EVM?  How is it performed?  What is a BCWS, BCWP, and ACWP and how are they used to determine whether or not our project is on track?

Earned Value Management offers project managers the opportunity to find variances in a project based on work that has already been completed. According to pmi.org, “Earned Value is also called Budgeted Cost of Work Performed (BCWP). Planned Value (PV) is determined by the cost and schedule baseline. Actual Cost (AC) is determined by the actual cost incurred on the project. Earned Value (EV) tells you, in physical terms, what the project accomplished.” All of these components work together to ensure that cost planning is accurate that all funds are properly allocated throughout the project…