In this video a Government Program Manager (PM)
and the Contractor's Program Manager (PM) are discussing the performance
of their program based on Earned Value Management (EVM) data from the third
month of execution. The contractor ran into supply problems in the
second month that impacted the program, but believes he has them fixed. The PMs compare the Budgeted Cost of Work Performed
(BCWP) to the Budgeted Cost of Work Scheduled (BCWS) and the Actual
Cost of Work Performed (ACWP) to determine how the effort is doing with regard
to cost and schedule after the third month. Comparing BCWP to BCWS
indicates that the program is still ahead of schedule. However, comparing BCWP
to ACWP indicates that, while costs have flattened out, the program is likely
to overrun the original Budget at Completion (BAC). The PMs have to determine
what they believe will be their Estimate at Completion (EAC).
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