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Unformatted text preview: in Chapter 4. Finally, the forecast for a work package is the control budget for the work package plus all productivity variances that affect the package. Similarly, the project forecast is the sum of the forecasts for all work packages that constitute the project. In summary, these budgets are defined by the following simple formulas: • client budget = original budget + change orders • control budget = client budget + quantification variances • forecast = control budget + productivity variances Figure 3-9 shows the comparison of the budgets and the forecast for a hypothetical project. Comparing the client budget to the original budget yields a summarization of the impact of Figure 3-9. Comparison of original, client, control, and forecast budgets. all change orders on the project budget. Comparing the control budget to the client budget gives a measure of how well the project was quantified. Poor productivity will show up in a comparison of the forecast to the control budget, but this comparison may also include the effect of forces beyond the control of project management. Figures 3-10a, 3-10b, and 3-10c show the variances to be entered for the example project. Figure 3- 10a shows the descriptions of the variances. Figure 3-10b shows the quantity and labor- hour line items for each of the variances and Figure 3- 10c shows the cost line items for each of the variances. These three categories of information about a variance require three different data entry tools for their input as will be described in what follows. Figure 3-10a. Variance descriptions for the example project. Figure 3-l0b. Variance quantity and labor- hour line items. Page 93 Figure 3-10c. Variance cost line items. Notice from Figure 3-10a that there are only three different variances to enter in this example. One of them is a change order (denoted COR) in the Variance Type column, one of them is a quantity variance (denoted QTY), and one of them is a productivity variance (denoted PRO). So there is one variance of each type discussed earlier. But from Figures 3-10b and 3-10c it can be seen that there are several variance line items for each of these variances. The data entry tool for entering variance descriptions is the Variance Descriptions Entry/Edit tool shown in Figure 3-11a. This tool is used to describe the variances to the Modern Project system. The other tools are used to enter the variance line items. If Page 94 Figure 3-1 la. Variance Descriptions Entry/Edit form. you are entering the example project data into Modern Project, you should use the Variance Desciptions Entry/Edit tool to enter the three variances shown in Figure 3-10a into the example project database now. To activate this tool, click on the Variance Descriptions Entry/Edit button on the Modern Project Main Menu. The first variance to be entered (shown in Figure 3-10a) is a change order. Unlike the Cost/Labor and Progress Transaction data entry tools, the Variance Description data entry tool does not automatically assign numbers. The reason for this has to do with the design of the Modern Project system. For technica...
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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