SlideShare una empresa de Scribd logo
1 de 17
Cost Management

How are you using the Budget ?
Cost Management Process
   Cost Estimation
        How much each activity is going to cost
        me and how long it is going to take

   Budgeting Process
        Estimates are added-up and base lined


    Control Process
        How you are doing compared to how
        you thought you would do
http://www.radiantminds.co.in
Planned Value
    Budget At Completion (BAC)

        This is the total budget you have for
        your project

       How much you planned to spend on
        your project

       To tell the sponsor the total amount of
        value needed for the project
http://www.radiantminds.co.in
Planned Value
    Planned % Complete

        Your team should have done 300 Hrs of
        work so far out of 1000 Hrs, so planned
        % complete is 30%




http://www.radiantminds.co.in
Planned Value (PV)
    Planned Value (PV)

        How much of budget you planned on
        using so far

       BAC is $200,000
       Planned % complete is 30%

       PV = $60,000

http://www.radiantminds.co.in
Earned Value (EV)
    How much work you have been able to
    accomplish with the money you have
    been given

    You can determine how far off-track
    your project actually is




http://www.radiantminds.co.in
Earned Value (EV)
    Write down your BAC

    EV = BAC X Actual % completion

    BAC = $ 200,000
   Actual % completed is 35%

    EV = $200,000 X .35 = $ 70,000


http://www.radiantminds.co.in
How Is your project doing?
    Schedule Performance Index (SPI)

        SPI = EV / PV


    Schedule Variance (SV)

        SV = EV - PV




http://www.radiantminds.co.in
Are you over budget
    Actual Cost (AC) – Amount of money
    you spent so far on the project

    Cost Performance Index (CPI)

        CPI = EV / AC


    Cost Variance (CV)

        CV = EV - AC

http://www.radiantminds.co.in
Diff. between EV and AC
    EV – measures the work that has been
    done

    AC – Tells how much you have spent
    so far

    When CPI is less than 1 and CV is
    negative that means your sponsor is
    not getting his money’s worth of value
    from the project
http://www.radiantminds.co.in
Summary
BAC         How much money you will spent on your project


PV          What your schedule says you should have spent


EV          How much of the project value you really earned


AC          How much you have actually spent so far


SPI         Whether you are behind or ahead of schedule


SV          How much behind or ahead of schedule you are


CPI         Whether you are within your budget or not


CV          How much above or below your budget you are
http://www.radiantminds.co.in
Forecasting
    Estimate at Completion (EAC)

        EAC = BAC / CPI


    Estimate to Complete (ETC)

        ETC = EAC - AC




http://www.radiantminds.co.in
Forecasting
    Variance at Completion

        VAC =         BAC - EAC




http://www.radiantminds.co.in
Pm 8 cost_management
Pm 8 cost_management
Pm 8 cost_management
Pm 8 cost_management

Más contenido relacionado

Similar a Pm 8 cost_management

Earned Value AnalysisTracking Project ProgressWh.docx
Earned Value AnalysisTracking Project ProgressWh.docxEarned Value AnalysisTracking Project ProgressWh.docx
Earned Value AnalysisTracking Project ProgressWh.docxsagarlesley
 
5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt
5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt
5. PAE AcFn621 Ch-5 Execution and Monitoring.pptProfDrAnbalaganChinn
 
09 05 control costs tools and techniques
09 05 control costs tools and techniques09 05 control costs tools and techniques
09 05 control costs tools and techniquesRafayelAlaverdyan
 
PMP Key Exam Concepts - Formulas
PMP Key Exam Concepts - FormulasPMP Key Exam Concepts - Formulas
PMP Key Exam Concepts - FormulasAnand Bobade
 
projectcostcontrol-130625012804-phpapp02 (1)
projectcostcontrol-130625012804-phpapp02 (1)projectcostcontrol-130625012804-phpapp02 (1)
projectcostcontrol-130625012804-phpapp02 (1)Nita Cristian
 
Project cost & control
Project cost & controlProject cost & control
Project cost & controlAMARAYYA
 
Earned Value Management Project Analysis
Earned Value Management Project Analysis Earned Value Management Project Analysis
Earned Value Management Project Analysis Roger H. Mandel
 
Earned value analysis - presentation
Earned value analysis  -  presentationEarned value analysis  -  presentation
Earned value analysis - presentationProPM Academy
 
Sample - PMP - Earned-Value-Questions.pdf
Sample - PMP - Earned-Value-Questions.pdfSample - PMP - Earned-Value-Questions.pdf
Sample - PMP - Earned-Value-Questions.pdfRobinsonDimaculangan1
 
Earned value Project Management (evpm)
Earned value Project Management (evpm)Earned value Project Management (evpm)
Earned value Project Management (evpm)Ejaz Bhatti
 
Earned value management
Earned value managementEarned value management
Earned value managementwhizkris
 

Similar a Pm 8 cost_management (20)

Project Management EVM & SCBA
Project Management EVM & SCBAProject Management EVM & SCBA
Project Management EVM & SCBA
 
Earned Value Analysis
Earned Value AnalysisEarned Value Analysis
Earned Value Analysis
 
Earned Value AnalysisTracking Project ProgressWh.docx
Earned Value AnalysisTracking Project ProgressWh.docxEarned Value AnalysisTracking Project ProgressWh.docx
Earned Value AnalysisTracking Project ProgressWh.docx
 
Basics of EVM.pdf
Basics of  EVM.pdfBasics of  EVM.pdf
Basics of EVM.pdf
 
5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt
5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt
5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt
 
EVA - Metrics.ppt
EVA - Metrics.pptEVA - Metrics.ppt
EVA - Metrics.ppt
 
EVM+Formulas+for+Exam.pdf
EVM+Formulas+for+Exam.pdfEVM+Formulas+for+Exam.pdf
EVM+Formulas+for+Exam.pdf
 
09 05 control costs tools and techniques
09 05 control costs tools and techniques09 05 control costs tools and techniques
09 05 control costs tools and techniques
 
PMP Key Exam Concepts - Formulas
PMP Key Exam Concepts - FormulasPMP Key Exam Concepts - Formulas
PMP Key Exam Concepts - Formulas
 
projectcostcontrol-130625012804-phpapp02 (1)
projectcostcontrol-130625012804-phpapp02 (1)projectcostcontrol-130625012804-phpapp02 (1)
projectcostcontrol-130625012804-phpapp02 (1)
 
Project cost & control
Project cost & controlProject cost & control
Project cost & control
 
Earned Value Management Project Analysis
Earned Value Management Project Analysis Earned Value Management Project Analysis
Earned Value Management Project Analysis
 
Earned value analysis - presentation
Earned value analysis  -  presentationEarned value analysis  -  presentation
Earned value analysis - presentation
 
Sample - PMP - Earned-Value-Questions.pdf
Sample - PMP - Earned-Value-Questions.pdfSample - PMP - Earned-Value-Questions.pdf
Sample - PMP - Earned-Value-Questions.pdf
 
Earned value analysis
Earned value analysisEarned value analysis
Earned value analysis
 
PMP COST FORMULAE
PMP COST FORMULAEPMP COST FORMULAE
PMP COST FORMULAE
 
COST MANAGEMENT REPORT
COST MANAGEMENT REPORT COST MANAGEMENT REPORT
COST MANAGEMENT REPORT
 
Earned value Project Management (evpm)
Earned value Project Management (evpm)Earned value Project Management (evpm)
Earned value Project Management (evpm)
 
Earned value management
Earned value managementEarned value management
Earned value management
 
Pmp cost chapter 7
Pmp cost chapter 7Pmp cost chapter 7
Pmp cost chapter 7
 

Más de Radiant Minds (20)

Corona virus and mental health
Corona virus and mental healthCorona virus and mental health
Corona virus and mental health
 
Campus 2 Corporate
Campus 2 CorporateCampus 2 Corporate
Campus 2 Corporate
 
E business cms
E business cmsE business cms
E business cms
 
E business scm_crm
E business scm_crmE business scm_crm
E business scm_crm
 
E business n_tier_arch
E business n_tier_archE business n_tier_arch
E business n_tier_arch
 
E business edi_vads
E business edi_vadsE business edi_vads
E business edi_vads
 
E business edi_messaging
E business edi_messagingE business edi_messaging
E business edi_messaging
 
E business edi_basics
E business edi_basicsE business edi_basics
E business edi_basics
 
E business internet fraud
E business internet fraudE business internet fraud
E business internet fraud
 
E business intro_toseo
E business intro_toseoE business intro_toseo
E business intro_toseo
 
E business internet_basics
E business internet_basicsE business internet_basics
E business internet_basics
 
E business case-studies
E business case-studiesE business case-studies
E business case-studies
 
Ism 4
Ism 4Ism 4
Ism 4
 
Ism 3
Ism 3Ism 3
Ism 3
 
ISM 2
ISM 2ISM 2
ISM 2
 
ISM-1
ISM-1ISM-1
ISM-1
 
Pm 2 planning
Pm 2 planningPm 2 planning
Pm 2 planning
 
Pm 3 approach
Pm 3 approachPm 3 approach
Pm 3 approach
 
Pm 4 scope
Pm 4 scopePm 4 scope
Pm 4 scope
 
Pm 5 time
Pm 5 timePm 5 time
Pm 5 time
 

Último

How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17Celine George
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsEugene Lysak
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxraviapr7
 
Latin American Revolutions, c. 1789-1830
Latin American Revolutions, c. 1789-1830Latin American Revolutions, c. 1789-1830
Latin American Revolutions, c. 1789-1830Dave Phillips
 
Benefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationBenefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationMJDuyan
 
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfP4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfYu Kanazawa / Osaka University
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.EnglishCEIPdeSigeiro
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxSaurabhParmar42
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRATanmoy Mishra
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
Presentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a ParagraphPresentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a ParagraphNetziValdelomar1
 
3.19.24 Urban Uprisings and the Chicago Freedom Movement.pptx
3.19.24 Urban Uprisings and the Chicago Freedom Movement.pptx3.19.24 Urban Uprisings and the Chicago Freedom Movement.pptx
3.19.24 Urban Uprisings and the Chicago Freedom Movement.pptxmary850239
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxiammrhaywood
 
General views of Histopathology and step
General views of Histopathology and stepGeneral views of Histopathology and step
General views of Histopathology and stepobaje godwin sunday
 
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfMaximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfTechSoup
 
Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...raviapr7
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptxraviapr7
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfMohonDas
 

Último (20)

How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17
 
Prelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quizPrelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quiz
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George Wells
 
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdfPersonal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptx
 
Latin American Revolutions, c. 1789-1830
Latin American Revolutions, c. 1789-1830Latin American Revolutions, c. 1789-1830
Latin American Revolutions, c. 1789-1830
 
Benefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationBenefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive Education
 
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfP4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptx
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
Presentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a ParagraphPresentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a Paragraph
 
3.19.24 Urban Uprisings and the Chicago Freedom Movement.pptx
3.19.24 Urban Uprisings and the Chicago Freedom Movement.pptx3.19.24 Urban Uprisings and the Chicago Freedom Movement.pptx
3.19.24 Urban Uprisings and the Chicago Freedom Movement.pptx
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
 
General views of Histopathology and step
General views of Histopathology and stepGeneral views of Histopathology and step
General views of Histopathology and step
 
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfMaximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
 
Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...Patient Counselling. Definition of patient counseling; steps involved in pati...
Patient Counselling. Definition of patient counseling; steps involved in pati...
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdf
 

Pm 8 cost_management

  • 1. Cost Management How are you using the Budget ?
  • 2. Cost Management Process Cost Estimation  How much each activity is going to cost me and how long it is going to take Budgeting Process  Estimates are added-up and base lined  Control Process  How you are doing compared to how you thought you would do http://www.radiantminds.co.in
  • 3. Planned Value  Budget At Completion (BAC)  This is the total budget you have for your project How much you planned to spend on your project To tell the sponsor the total amount of value needed for the project http://www.radiantminds.co.in
  • 4. Planned Value  Planned % Complete  Your team should have done 300 Hrs of work so far out of 1000 Hrs, so planned % complete is 30% http://www.radiantminds.co.in
  • 5. Planned Value (PV)  Planned Value (PV)  How much of budget you planned on using so far BAC is $200,000 Planned % complete is 30% PV = $60,000 http://www.radiantminds.co.in
  • 6. Earned Value (EV)  How much work you have been able to accomplish with the money you have been given  You can determine how far off-track your project actually is http://www.radiantminds.co.in
  • 7. Earned Value (EV)  Write down your BAC  EV = BAC X Actual % completion  BAC = $ 200,000 Actual % completed is 35%  EV = $200,000 X .35 = $ 70,000 http://www.radiantminds.co.in
  • 8. How Is your project doing?  Schedule Performance Index (SPI)  SPI = EV / PV  Schedule Variance (SV)  SV = EV - PV http://www.radiantminds.co.in
  • 9. Are you over budget  Actual Cost (AC) – Amount of money you spent so far on the project  Cost Performance Index (CPI)  CPI = EV / AC  Cost Variance (CV)  CV = EV - AC http://www.radiantminds.co.in
  • 10. Diff. between EV and AC  EV – measures the work that has been done  AC – Tells how much you have spent so far  When CPI is less than 1 and CV is negative that means your sponsor is not getting his money’s worth of value from the project http://www.radiantminds.co.in
  • 11. Summary BAC How much money you will spent on your project PV What your schedule says you should have spent EV How much of the project value you really earned AC How much you have actually spent so far SPI Whether you are behind or ahead of schedule SV How much behind or ahead of schedule you are CPI Whether you are within your budget or not CV How much above or below your budget you are http://www.radiantminds.co.in
  • 12. Forecasting  Estimate at Completion (EAC)  EAC = BAC / CPI  Estimate to Complete (ETC)  ETC = EAC - AC http://www.radiantminds.co.in
  • 13. Forecasting  Variance at Completion  VAC = BAC - EAC http://www.radiantminds.co.in