Budgeted Cost of Work Scheduled (BCWS), also called the Planned Value (PV), is the sum of the budget for all work scheduled to be accomplished within a given time period. It also includes the cost of previous work completed and can address a specific period of performance or a date in time. Definition: Budgeted Cost […]
The Budgeted Cost of Work Performed (BCWP) is the budgeted cost (Dollars) of the value of work that has actually been accomplished or completed to date. It can be used to address the entire project, individual task, or work packages. It’s compared against the Actual Cost of Work Performed (ACWP). BCWP is a tool used
Budget at Completion (BAC) is established early in the contract for every given level of the Work Breakdown Structure (WBS). They represent the total budget from which individual period Budgeted Cost of Work Scheduled (BCWS) values are derived and they are the benchmarks for computing overruns and underruns at the end of the contract. The
Actual Cost of Work Performed (ACWP) is the cost incurred and recorded for work completed within a given time period. The ACWP is reported by the contractor’s accounting system in accordance with generally accepted accounting procedures and is simply stated actuals are actuals. ACWP also called Actual Cost. Definition: The realized cost incurred for the
The National Defense Industrial Association (NDIA) / Electronic Industries Alliance (EIA) standard EIA-748, Earned Value Management Systems (EVMS), is the standard for DoD Earned Value Management programs. The DoD formally adopted EIA-748 in August 1998 for application to Major Defense Acquisition Programs (MDAP). Note: Earned Value Management Surveillance is required for all contract efforts that
The DoD Earned Value Management Interpretation Guide (EVMIG) provides guidance to be used during the implementation and surveillance of Earned Value Management Systems (EVMS) established in compliance with DoD Guidelines. Part I of this guide provides guidance for understanding EVMS concepts describes objective guidelines for EVMS, and provides guidance in interpreting those guidelines for use
Note: The Integrated Program Management Report (IPMR) has replaced the Contractor Performance Report (CPR) for new contracts as of July 1, 2012. The Contractor Performance Report (CPR) provides contract cost and schedule performance data that is used to identify problems early on an acquisition contract and forecast future contract performance in Earned Value Management (EVM).
Schedule Variance (SV) indicates how much a project is ahead or behind schedule. It measures whether a project is on track by calculating actual progress against expected progress. SV is used by the Program Manager (PM) and program personnel to determine how best to utilize their remaining resources. Monitoring SV will keep you apprised of
Cost Variance (CV) determines how much a project has spent in relation to its budget and the difference between what was planned to be spent and what was actually spent at a certain time. It’s the difference between the Budgeted Cost of Work Performed (BCWP) and the Actual Cost of Work Performed (ACWP). Definition: Cost
Earned Value Management (EVM) is a project management technique for objectively measuring project performance and progress. EVM has the ability to combine measurements of scope, schedule, and cost in a single integrated system. It’s notable for its ability to provide accurate forecasts of project performance problems. Early EVM research showed that its use significantly impacts
Note: Cost Analysis Improvement Group (CAIG) is now known as Cost Assessment and Program Evaluation (CAPE). The Cost Assessment and Program Evaluation (CAPE) office provides independent analytic advice to the Secretary of Defense on all aspects of the Defense program, including alternative weapon systems and force structures, the development and evaluation of defense program
Earned Value Management (EVM) is a project management technique for objectively measuring project performance and progress. EVM can combine measurements of scope, schedule, and cost in a single integrated system. It’s notable for its ability to forecast project performance problems accurately. Early EVM research showed that its use significantly impacts the areas of planning and
