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Schedule Performance

This document discusses earned value analysis, which is used to measure project performance and progress. It defines three key terms: 1) Budgeted cost of work scheduled (BCWS) is the planned budget and work hours. 2) Budgeted cost of work performed (BCWP) is the budgeted cost of work actually completed. 3) Actual cost of work performed (ACWP) is the actual cost incurred. Comparing BCWP to BCWS and ACWP gives insights into if a project is on budget and on schedule. Earned value allows measuring progress across multiple tasks.

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Sucher Eolas
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19 views1 page

Schedule Performance

This document discusses earned value analysis, which is used to measure project performance and progress. It defines three key terms: 1) Budgeted cost of work scheduled (BCWS) is the planned budget and work hours. 2) Budgeted cost of work performed (BCWP) is the budgeted cost of work actually completed. 3) Actual cost of work performed (ACWP) is the actual cost incurred. Comparing BCWP to BCWS and ACWP gives insights into if a project is on budget and on schedule. Earned value allows measuring progress across multiple tasks.

Uploaded by

Sucher Eolas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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AACE INTERNATIONAL PROGRESS MEASUREMENT AND EARNED VALUE

GLOSSARY TERMS IN THIS CHAPTER


As can be seen from this equation, a portion of the budgeted
amount is earned as a task is completed, up to the total earned value ◆ fixed cost ◆ productivity
amount in that account. One cannot earn more than has been
budgeted. For example, assume that $10,000 and 60 work-
hours have been budgeted for a given account and that
account is now 25 percent complete, as measured by one of to plan. Fortunately, the earned value system lends itself very
the methods previously described. In other words, $2,500 well to such an analysis.
and 15 workhours have been earned to date.
The System—Budgeted and earned workhours or dollars
Since progress in all accounts can be reduced to earned work- have been the earned value factors considered to this point,
hours and dollars, this provides a way to summarize multi- but to these must be added actual workhours or dollars, since
ple accounts and calculating overall progress. The formula it is a combination of the three measures that are needed for
for this is: the analysis. The earned value system defines these terms as
follows:
percent complete = (earned workhours or dollars all accounts)
/(budgeted workhours or dollars all accounts) Budgeted workhours or $ to date represent what is
(equation 4) planned to be done. This is called budgeted cost for
work scheduled (BCWS).

COST AND SCHEDULE PERFORMANCE Earned workhours or $ to date represent what was done.
This is called budgeted cost for work performed
The concepts discussed thus far provide a system for deter- (BCWP).
mining the percent complete of single work tasks or combi-
nations of tasks. The next challenge is to analyze the results Actual workhours or $ to date represent the cost incurred.
and to determine how well things are proceeding according This is called actual cost of work performed (ACWP).

earned quantity = (allowed credit) * (summary quantity) *(quantity to date)


(total quantity)
earned tons beams = (0.11) * (520 tons) * (45 each) = 3.0 tons
(859 each)
percent complete = 83.5 tons = 16.1%
520 tons (equation 2)

A variation of this approach uses equivalent units for each subtask. In the example above, each subtask item would be given a unit
of measure that is an equivalent ton. For example, each beam would have an equivalent ton value determined as follows:

beam equivalent ton = (0.11 allowed credit) (520 tons) = 0.666 tons/beam
(859 beams)

Table 14.2—Rules of Credit Example for Structural Steel

Allowed Total Total To-Date Earned


Credit Subtask U/M Quantity Quantity Tons
0.02 run foundation bolts each 200 200 10.4
0.02 shim % 100 100 10.4
0.05 shakeout % 100 100 26.0
0.06 columns each 87 74 26.5
0.11 beams each 859 45 3.0
0.10 cross braces each 837 0 0.0
0.20 girts and sag rods bay 38 0 0.0
0.09 plumb and align % 100 5 2.3
0.30 connection each 2,977 74 3.9
0.05 punch list % 100 0 0.0
1.00 Steel Totals ton 520 82.5

14.3

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