P4: Module 3

Earned Value Management

Integrates scope, schedule, and cost to measure the project’s actual performance status vs the estimated result

Planned Value

That portion of the approved cost estimate planned to be spent on the given activity during a given period

Commulative Planned Value

Authorized budget for certain tasks performed within the estimated date (PMB)

Current Planned Value

Authorized budget for completing certain task within schedule dates/ weeks/mos (BCW)

percent planned

Percent of work scheduled for accomplishment

EAC

Budget at completion

Earned Value

The value of work actually completed

Earned Value

The value of performed task in terms of the approved budget, and officially it was known as budget cost of work performed or BCWP

PV=PPxBAC

formula for Planned Value

EV= PCx BAC

Formula for Earned Value

Percent Completed

percent of actual completion of work

Actual Cost

The Total of the cost incurred in accomplishing work on the activity in a given period

PV vs EV

Determine wether the project is moving according to the schedule

EV vs AC

Evaluating whether the project is running within the budget

Schedule Variance

Indicated the difference between actually accomplished works against the amount of scheduled work

Schedule Variance

Shows the actual status of the project

0

if the project is on __, then it is on schedule.

negative

if the variance is ___, then its behind schedule

Positive

if the variance is in __ then is it advance of the schedule.

SV= EV-PV

what is the formula of schedule variance

Cost Variance

Indicates that the project is on budget or not

Cost Variance

Measures the difference between the approved budget amount and the actual cost spent to perform the task

CV= EV-AC

Formula of Cost Variance

Schedule Performance Index

The ratio of earned value to planned value

Schedule Performance Index

calculated by involving the division of earned value by planned value to show the actual completion of a task against the estimated task

Ahead of schedule

SPI greater than 1.0 means the project is_____

projects delayed schedule

SPI below than 1.0 means the project is_____

Cost Perfomance Index

measure the actual completion of work value againes scheduled work

CPI= EV/AC

formula of Cost Performance INdex

Cash Flow Projection

a proactive approach to managing cash flow, enabling you to anticipate challenges and make informed decisions to safeguard the future of your project.

Cash Flow Projection

a financial forecast that estimates the future inflows and outflows of cash for a specified period of time

receivables

cash inflow is also known as

Payables

cash flow is also known as

Cash flow projection

estimation of future inflows and outflows based on the hisorical data assumption and trends

Cash flow Forecasting

process of forecasting future cash movememnt based on curent financial data and market condition

Short term projection

0-12 months, for immediate planning and monitoring

Long term Projection

more than 12 months, for strategic decison making and future planning

combination approach

to address both concern in projection model

Short term Cash Forecasting

helps manage day to day operationns, cover near term obligation like payroll, and vendor payment.

Cover Near Term Needs

ensures funds are available for upcoming essential expenses

Built on frequent updates

keeps cash flow plans dynamic and relevant to day to day changes on site

PLan for cash gaps

identify and prepare for expected shortfalls between incoming and outgoing cash

improve short term decisions

avoid overborrowing or underutilizing funds; optimize working capital

Direct Forecasting

Based on actual, scheduled cash transactions over the short term

Moving Average

forecast based on averaging past cash inflows and outflows

exponential smoothing

recent data is weighted more heavily than older data to reflect chnaging trens faster

Time Series Model

uses historical patterns to predict future cash flow based on seasonality or cyclical behavior

Naive Forecasting

assumes tomorrows cash inflows will be the same as todays

judgement based method

based on expert input from project teams, especially useful when data is incomplete or disrupted

long term cash forecasting

supports high level planning by forecasting future cash flows

strategic forecasting via pro forma statement

builds future financial statements based on strategic plans

adjusted net income approach

starts with forecasted net income and adjusted for non cash items, working capital changes, and capital expecentures.

scenario modeling

forecast multiple outcomes by adjusting key variables

High level infloes/ outflows tracking

maps broad cash inflows trends using big picture revenue and expense forecasting often quarterly or yearly.

data and bi tools

uses historical data and external triggers via analytics platforms

Cash Deposition

a process of determining a projects cash position by analyzing the actual cash flows from sources different sources.