Tuesday, July 30, 2013

Project Management Question of the Week


A simple and fast way of calculating the estimate at completion for the project, would be to take the budget at completion and divide by:
  • Cost variance
  • Cost performance index
  • To-complete performance index
  • Schedule performance index
The basics of the Earned Value Management Process - - link.

Bonus points -

A project for the transfer and distribution of electric power is reporting a cost performance index of 0.72.  We could say that:
  • The project gets $0.72 for every spent dollar
  • Is is expected that the total project cost be 72% higher than planned
  • The project is 28% under the planned value
  • The project has completed only 72% of what was planned

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