Budgeted cost of work performed (bcwp), Project Management

Budgeted cost of work performed (BCWP), or "earned value" (EV), in project management is the budgeted cost of work that has truly been done in carrying out a scheduled task in a particular time period. NASA's definition of the BCWP is the sum of the budgets for completed work packages and completed parts of open work packages, plus the applicable part of the budgets for level of effort and apportioned effort. BCWP is an Earned value management word and it is dissimilar from:

  • Budgeted cost of work scheduled (BCWS) : the approved budget that has been assigned to complete a scheduled task within a specific time period.
  • Actual Cost of Work Performed (ACWP) : the actual cost that has been used up, rather than the budgeted cost.

As example of the difference assume that a schedule contains:

  • a work "Test hardware" that is budgeted to cost $1000 to be done, and
  • is probable to begin at the start of January 1 and
  • Finish at the end of January 10.

At the end of January 5, the work is scheduled to be 50% complete (5 days of the scheduled 10 days). So, at the end of January 5,

  • the BCWS is $1000 (the budgeted cost) times 50% (the scheduled completion percentage), or $500.

Assume that by the end of January 5, the work is just only 30% complete. In this situation,

  • the BCWP would be $1000 (budgeted cost) times 30% (the actual completion percentage), or $300.

Also, assume that to reach the 30% complete level at the finish of January 5, $250 was actually spent.

  • Then, the ACWP would be $250.
Posted Date: 9/27/2012 4:01:21 AM | Location : United States







Related Discussions:- Budgeted cost of work performed (bcwp), Assignment Help, Ask Question on Budgeted cost of work performed (bcwp), Get Answer, Expert's Help, Budgeted cost of work performed (bcwp) Discussions

Write discussion on Budgeted cost of work performed (bcwp)
Your posts are moderated
Related Questions
How to initiate a project

Advantages of Product Layout - Scientific Materials Handling This layout facilities adoption of automatic handling devices. The channelization of  work flow  through  direct

Perform a status assessment of the third Elaboration iteration. DO NOT GENERALISE. Assess each activity separately and assess it against the outcomes specified for the activity. Ge

Hello again... I am sorry that I keep sending paper back, but once again it does not include what is needed. I made comments on paper on how it needs to be broken down and what inf

Question 1: (a) Identify and explain the major roles of a Project Manager with illustrations where necessary. (b) Identify and Explain the different types of Project Organ

A 69 year old Greek man, Mr. Baltas, who speaks little English, was admitted to a major hospital in Melbourne for assessment and tests for a cancer-related illness. He had been dia

Q3. What do you understand by “line balancing”? What happens if balance doesn’t exist?

Question : (a) Any project has a beginning and an end; without a formal closure process, project teams can fail to recognize the end and this can drag the project into unneces

Q. What if I need more money? The similar applies here as in Question 17. Though the options that are open will depend on how far the project has already advanced. In general t

Question: a) With the help of a diagram classify the different global project methodologies (ITIL, CoBIT, Prince 2, BS 17799, COSO,....) that you are aware of in terms of deve