This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Page 74 base. It is used for correcting cost posting errors. This report can be obtained by clicking on its button on the Modern Project Main Menu. Figure 3-4 shows the Cost Comparison Report . It is used to get a picture of how the project is doing in terms of actual expenditure of resources. It is also useful for discussing the project with the client. It is organized around the WBS in that it lists the control packages in the order in which they appear in the WBS and gives the summary cost (expenditure) data for each control package. For work packages, it breaks out the costs by cost code within the work package. The Cost Comparison Report compares the To Date Cost , the Total Cost , and the Forecast Budget with the Control Budget . The To Date Cost is the total amount that has been expended for a control package. The Percent (%) Budget Expended is the percentage of the control budget that has been spent. In addition to what has been spent is the open commitment (Open Amount) that has already been committed but not yet paid. The Total Cost is just the sum of what has been spent and what has been committed. We have not yet explained how the Forecast Budget is computed. This is done later in this chapter. The Forecast Budget (or simply the forecast) amount shown on the Cost Comparison Report is the amount we expect will be expended (for each control package) by the time the project completes. At this point you may be wondering why this would be different from the control budget. The control budget is the budget that is used to control the project, but productivity variances on the control packages often cause the final costs to differ from the budgeted costs. Nevertheless, it is possible, using the techniques that are explained in this and later chapters, to know fairly accurately in advance what these final costs will be. And it is the computation of these costs that is printed in the Forecast Budget column of the Cost Comparison Report. 3.3— Progress Tracking Progress tracking is fundamental to performance evaluation, variance analysis, and productivity measurement. The calcula- TE
Team-Fly® AM FL Y
Figure 3-4. Cost Comparison Report Page 76 tions used to compute performance, variance, and productivity measures are all based on the percent complete (the final measure of progress) for each work package. It is critical that progress data (for percent complete calculations) accurately reflect the physical progress on the work package and not some ''subjective guess" the work package manager makes. It is the responsibility of project management to ensure that each work package is accurately statused (progress data accurately determined) each period. Consequently, various statusing techniques have been devised to ensure some degree of objectivity in determining progress. All of these methods attempt to reduce statusing to determining if some verifiable component of the work has been completed or not. Some of these statusing methods are: • The Quantity method • The Milestone method...
View Full Document
This note was uploaded on 01/11/2011 for the course ACC 9 taught by Professor Yeetan during the Spring '10 term at Sunway University College.
- Spring '10