RE: Re: Responsibility

Dale,

> > Dale seems to be saying that the EVMS dollar measurements are an input
> > rather than an output measure. I that it Dale?
> 
> EVMS includes several dollar values.  Earned Value (also known as
> Budgeted Cost of Work Performed, or BCWP) is one of those dollar values.
> 
> Here are some definitions from A Guide to the Project Management Body
> of Knowledge (1996 edition -- I don't have 2000 handy):
> 
> Actual Cost of Work Performed (ACWP): Total costs incurred (direct and
> indirect) in accomplishing the work during a given time period.

OK, an input measure.
 
> Budgeted Cost of Work Performed (BCWP): The sum of the approved cost
> estimates (including any overhead allocations) for activities (or
> portions of activities) completed during a given period (usually
> project-to-date).
> 
> Budgeted Cost of Work Scheduled (BCWS): The sum of the approved cost
> estimates (including any overhead allocations) for activities (or
> portions of activities) scheduled to be performed during a given
> period (usually project-to-date).
> 
> Those are the three basic quantities in EVMS.  From these, you can
> calculate a cost performance index (BCWP/ACWP) and a schedule
> performance (BCWP/BCWS).  Though BCWP doesn't measure value in the
> usual sense of the word, it has the property of normalizing these two
> indices, which allows you to relate cost performance and schedule
> performance.  This makes it easier to see if you're gaining speed at
> the expense of budget, or lowering costs at the expense of the schedule.

I've worked with this sort of measure - but not for a long time.

As you say this isn't value delivered in our sense. The ratio is
useful only if you're working on the right stuff.

Charlie Poole
[email protected]
www.pooleconsulting.com
www.charliepoole.org




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