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Unformatted text preview: . For instance, you could select the Cost Comparison Report from the Main Menu of the Modern Project toolset by clicking on its control button. 6.3.2— New Progress Transactions At the end of Chapter 5, there were only ten progress transactions in the example database. These are the progress transactions that were listed in Figure 3-6 and entered during the reading of Chapter 3. The new progress transactions that have been added to the Chapter 6 version of the example database are shown in Figure 6 -6. With these new progress transactions it is now possible to produce more realistic performance charts, such as those shown in Figures 6-7, 6-8, and 6-9. Figure 6-7 is the new Earned Value (EV) chart we get from all of these new transactions. The new expenditure transactions and progress transactions that we entered were calculated to give the performance measurement charts a more realistic look. They do not necessarily represent realistic cost and progress values for a project of this size and duration. The reader will notice that in the new EV chart, the cost curve (expended man-hour curve) tracks the budget curve (project baseline curve) fairly closely. This indicates that the rate of expenditure of resources throughout the project lifetime is close to what was estimated. Page 146 Figure 6-6. Additional progress transactions for example project. Page 147 Figure 6-7. New earned value chart based on new transactions. However, in this new EV chart, the earned value curve (earned man-hours curve) trails the other two curves somewhat throughout the project lifetime. This indicates that the project has been running somewhat behind schedule during the duration of project execution. So, all in all, the example project is not doing too badly, but then we calculated the cost and progress transactions so it would come out this way. Figure 6-8 shows the new Cost Performance Ratio (CPR) trend chart. Notice that on this chart the total (cumulative) CPR curve approaches the value of 1 quickly and then stays fairly near this value. In contrast, the period (monthly) CPR curve oscillates dramatically. One month it is substantially above 1 and the next month substantially below 1, and then the following month it is substantially above 1 again, and so forth. The oscillatory behavior of the period Cost Performance Ratio from month to month should not alarm the project manager. It often has as much to do with delays in getting expenditure and progress data into the database as it does with the Figure 6-8. New Cost Performance Trend Chart based on new transactions. actual cost performance on a project. On very large projects, there can be thousands of expenditure and progress transactions a month. Some months the timing of the logging of these transactions causes work done in one month to be reported the following month. If, during the following month, all the work gets reported on time, it can cause the previous month to show a very low cost performance ratio and the following month to show a very high cost performance ratio. Consequently, it is the total (cumulative) Cost P...
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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