Microsoft Office Tutorials and References
In Depth Information
BCWP (budgeted cost of work performed): Referred to in some circles
as earned value, BCWP is essentially a calculation of the value of the
work that you’ve completed expressed in dollars. For example, if a task
has $2,000 of costs associated with it and you record that the task is 50
percent complete, the earned value for that task is $1,000 (50 percent of
the baseline estimated costs).
ACWP (actual cost of work performed): This calculation looks at actual
costs, including tracked resource hours or units expended on the task
plus fixed costs. Whereas BCWP looks at the baseline value of work,
ACWP looks at actual tracked costs.
EAC (estimate at completion): This is a total of all costs on a task. For a
task in progress, EAC calculates the actual costs recorded to date plus
the remaining baseline estimated costs.
CV (cost variance): This represents the difference between planned costs
(that is, costs included in the baseline for a task) and the combination of
actual costs recorded to date plus any remaining estimated costs. This
number is expressed as a negative number if you’re under budget and as
a positive number if you’re like the rest of us (over budget).
Studying these numbers can help you see what it has cost to get where you
are today on your project.
Calculations behind the Scenes
While you’re happily entering resource hours and fixed costs into your
project, Project is busy making calculations that can shift around task timing and
resource workload in your plan. These calculations relate to how tasks are
updated, how the critical path is determined, and how earned value is
calculated. If you’re a control freak, you’ll be happy to know that you can, to some
extent, control how Project goes about making these calculations.
Remember that the new Change Highlighting feature helps you see what
effect an individual change has on your project. See Chapter 10 for more
about this feature.
Going automatic or manual
By default, Project is on automatic as far as calculations go. When you make a
change to your plan, Project recalculates totals, the critical path, and so on
without you having to lift a finger. However, you can change that default
setting and have Project wait for you to initiate calculations manually. You do so
in the Calculation tab of the Options dialog box (Tools ➪ Options). Figure 14-9
shows the settings available there.