In project management, getting an early indication of problems is the silver bullet that allows the project manager to correct the problems before they start. The Cost Performance Index, usually abbreviated as CPI, is one of the fundamental outputs of the Earned Value Management System. It tells the project manager how far ahead or behind the project is at … [Read more...]
In project management, getting an early indication of problems is the silver bullet that allows the project manager to correct the problems before they start. Cost Variance, usually abbreviated as CV, is one of the fundamental outputs of the Earned Value Management System. It tells the project manager how far ahead or behind the projects is at the point of … [Read more...]
I think someone needs to pay closer attention to road! In order to make sure that disasters like this never happen, the project manager should institute a strong system of project monitoring. Fortunately, there is plenty of information within the Project Management Body of Knowledge (PMBOK) for this. If done right, it can save your project from disaster. In fact, … [Read more...]
Putting out fires is practically part of the job description for some project managers. Every project has changes throughout its life span, sure, but how do you control them, or better yet, how do you stop them from popping up? Project controls are where the project manager earns their wages. Assigning work is relatively easy, but how do you ensure the quality of the … [Read more...]
In project management, getting an early indication of problems is the silver bullet that allows the project manager to correct the problems before they start. The Schedule Performance Index, usually abbreviated as SPI, is one of the fundamental outputs of the Earned Value Management System. It tells the project manager how far ahead or behind the project is at the … [Read more...]
Earned value analysis is used to calculate the project status on two fronts: Schedule. Is the project ahead of or behind schedule? Cost. Is the project over or under budget? Let's say you are the project manager for the renovation of 3 hotel rooms. The tasks are as follows: Preparation. Jan. 1 - Jan. 10, $5,000. Room #1: Jan. 10 - 20, $15,000. Room … [Read more...]
Not too long ago I was presiding over the tender opening for a small bridge replacement project. I had recently heard of some stories from another, unrelated, government contact that a certain contractor had ended up in court with them, and it turned out that after opening several tenders that this particular contractor was the low bidder (so far). I was holding my … [Read more...]
Present value calculations are an essential part of almost every industry. I see projects every day whose economic basis depend on knowing the present value of a stream of cash flow. Unfortunately most of the time projects are justified simply on the basis of having money in the budget and choosing the next project in the priority list. A … [Read more...]
Hopefully your projects never have this type of variance! A variance is defined as a schedule, technical, or cost deviation from the project plan. Variances should be tracked and reported, as well as mitigated through corrective actions. There are two types of variance which normally receive most of the attention: Cost Variance Schedule Variance Calculating … [Read more...]
We engineers exist, by definition, on the interface between the economic and sub-economic. It is often our job to try and define the boundary, and it is often defined by technological factors that have to be developed to a new point. Most colleges and universities give engineering students a course on engineering economics, but this does not translate to widespread use … [Read more...]
