上海交通大学：《工程项目管理 Engineering Project Management》教学资源（PPT课件）Chapter 9 Cost Planning and Performance

上浒充通大学 SHANGHAI JIAO TONG UNIVERSITY Project Management Dr.HU Hao 六漏 School of Naval Architecture Ocean and Civil Engineering Shanghai Jiao Tong University 2012

Project Management Dr. HU Hao School of Naval Architecture Ocean and Civil Engineering Shanghai Jiao Tong University 2012

上游充通大学 SHANGHAI JLAO TONG UNIVERSITY Part 2 PROJECT PLANNING AND CONTROL Chapter 9 Cost Planning and Performance

Part 2 PROJECT PLANNING AND CONTROL Chapter 9 Cost Planning and Performance

上游充通大粤 SHANGHAI JIAO TONG UNIVERSITY Learning Objectives Items to be considered when estimating cost Preparing a baseline budget Cumulating actual costs Determining the earned value of work performed Analyzing cost performance Forecasting project cost at completion Controlling project costs ④Managing cash flow

Learning Objectives Items to be considered when estimating cost Preparing a baseline budget Cumulating actual costs Determining the earned value of work performed Analyzing cost performance Forecasting project cost at completion Controlling project costs Managing cash flow

上游充通大粤 Project Cost Estimates SHANGHAI JIAO TONG UNIVERSITY Cost planning starts with the proposal. The cost section may include elements as the following: ·Labor ·Materials ● Subcontractors and consultants (if used) Equipment and facilities rental Travel ·Contingencies Cost estimates should be aggressive yet realistic

Project Cost Estimates Cost planning starts with the proposal. The cost section may include elements as the following: • Labor • Materials • Subcontractors and consultants (if used) • Equipment and facilities rental • Travel • Contingencies Cost estimates should be aggressive yet realistic

上游充通大粤 SHANGHAI JLAO TONG UNIVERSITY Project Budgeting Two steps: First,the project cost estimate is allocated to the various work packages in the project work breakdown structure. Second,the budget for each work package is distributed over the duration of the work package

Project Budgeting Two steps: First, the project cost estimate is allocated to the various work packages in the project work breakdown structure. Second, the budget for each work package is distributed over the duration of the work package

上游充通大粤 SHANGHAI JLAO TONG UNIVERSITY Project Budgeting Step 1:Allocating the Total Budgeted Cost Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost(TBC)for each work package. The approaches to establishing the TBC for each work package:top-down and bottom-up. When all budgets are summed,they cannot exceed the TBC

Step 1: Allocating the Total Budgeted Cost Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost (TBC) for each work package. The approaches to establishing the TBC for each work package: top-down and bottom-up. When all budgets are summed, they cannot exceed the TBC. Project Budgeting

上游充通大粤 SHANGHAI JLAO TONG UNIVERSITY Project Budgeting Step 2:Developing the Cumulative Budgeted Cost The second step is to distribute each TBC over the duration of its work package. A cost is determined for each period. The cumulative budgeted cost(CBC)is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in time. The CBC is the baseline that will be used in analyzing the cost performance of the project

Step 2: Developing the Cumulative Budgeted Cost The second step is to distribute each TBC over the duration of its work package. A cost is determined for each period. The cumulative budgeted cost (CBC) is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in time. The CBC is the baseline that will be used in analyzing the cost performance of the project. Project Budgeting

上游充通大粤 Determining Actual Cost SHANGHAI JIAO TONG UNIVERSITY Track actual cost by establishing a system to collect data on funds actually expended. Periodically assign a portion of the total committed cost to actual cost. Total actual and committed cost by work package for comparison to the cumulative budgeted cost. Cumulative actual cost(CAC)should be calculated

Determining Actual Cost Track actual cost by establishing a system to collect data on funds actually expended. Periodically assign a portion of the total committed cost to actual cost. Total actual and committed cost by work package for comparison to the cumulative budgeted cost. Cumulative actual cost (CAC) should be calculated

上游充通大学 SHANGHAI JIAO TONG UNIVERSITY Determining the Value of Work Performed Earned value (EV)is the value of the work actually performed. Determine earned value by collecting data on the percent complete for each work package. Convert this percentage to a dollar amount by multiplying the total budgeted cost of the work package by the percent complete

Determining the Value of Work Performed Earned value (EV) is the value of the work actually performed. Determine earned value by collecting data on the percent complete for each work package. Convert this percentage to a dollar amount by multiplying the total budgeted cost of the work package by the percent complete

上游充通大粤 Cost Performance Analysis Four Measures SHANGHAI JIAO TONG UNIVERSITY TBC(total budgeted cost) CBC(cumulative budgeted cost) CAC(cumulative actual cost) CEV(cumulative earned value) They are used to determine whether the project is being performed within budget and whether the value of the work performed is in line with the actual cost

Cost Performance Analysis Four Measures TBC (total budgeted cost) CBC (cumulative budgeted cost) CAC (cumulative actual cost) CEV (cumulative earned value) They are used to determine whether the project is being performed within budget and whether the value of the work performed is in line with the actual cost