This preview shows page 1. Sign up to view the full content.
Unformatted text preview: s capability, since in this age of personal computers and workstations it is possible to share copies of Modern Project databases (e.g., via diskettes, via e- mail attachments, or directly over a network). In this way individual project team members are able to scan these reports on-line rather than print them out, or they can selectively print only the pages they need. As previously mentioned, the Cost and Schedule Variance Report is tailored for management-byexception. Each control package manager can use it to see how his or her control packages are performing. If their performance is acceptable, the manager can elect to look no further; if not, the manager can observe the cost and schedule variances at the next lower level Page 119 Figure 4-4. Cost and schedule variance report for example project. in the WBS hierarchy in search of the offending control package (s). This process can be repeated recursively until all the offending work packages are isolated. With the help of this information, the control package manager can begin the process of planning how to recover from this situation. 4.3.4— The Cost Performance Ratio In addition to the Earned Value Chart and the Cost and Schedule Variance Report, project management also uses the Cost Per- formance Trend Chart and the Schedule Performance Trend Chart to measure cost and schedule performance. These two reports are based on the concepts of the cost performance ratio and the schedule performance ratio . While the cost variance for the project at time t is defined to be the difference between the earned man and the actual man- hours expended, the Cost Performance Ratio (CPR) is defined to be the ratio of the earned man- hours to the actual man-hours expended at time t : where CPR(t) is the cost performance ratio for the project at time t , E(t) is the earned man-hours at time and A(t) is the actual man -hours expended at time t , as depicted in Figure 4- 1. Figure 4-5 shows the Cost Performance Trend Chart for the example project. It consists of two curves, the total or cumulative cost performance ratio curve for the total project and the period Figure 4-5. Cost Performance Trend Chart (early data) for example project. Page 121 cost performance ratio curve for the project. The curve with the diamond-shaped markings is the cumulative cost performance ratio curve, and the curve with the square marks is the period cost performance ratio curve for the project. Both of these curves are plotted with respect to time t . This chart can be produced by clicking on the Cost Performance Chart button on the Main Menu. At any time t the cumulative cost performance ratio is just CPR(t) . The so-called period cost performance trend curve is the cost performance ratio for each period (e.g., each week or month). If t represents time at the end of some month m and t-1 represents time at the end of the previous month, then the period cost performance ratio at time t, denoted PCPR(t) , is defined by: It is common for the period cost performance ratio curve to be somewhat erratic, especially a...
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