Differentiate between BCWP and ACWP

S

Strasser

Hi,

Could you anyone clearly explain the difference between BCWP and ACWP?

Both deal with work performed.
BC = budgeted cost = cost you predicted, when you scheduled the work.
AC = actual cost = after the work was performed, what did the work
actually cost.

The closer the AC to the BC (actual cost to predicted cost)...
the more accurate your prediction was.

Hope this helps
Strasser
 
J

Jim Aksel

Let me expand on Rob's link a little bit. The painter agrees to paint 1 wall
per day for $100 each wall. Let's assume a large 8 sided room. We predict 8
days for the job and $800. Each day, the painter gets paid $100 (he is paid
by the hour and works 10 hour days to keep it simple. If all goes accoring
to plan, the values of BCWS, ACWP and BCWP will each increase by $100 every
day.

Day1: Planned (PV or BCWS) is $100 representing 1 wall.
Assume the painter is very good and gets two walls painted in half a day and
he leaves after 5 hours)
At the end of Day1:
BCWS=$100, ACWP=$50, EV (or BCWP) = $200 (the value of the two painted
walls). We are ahead of schedule and below cost

Day2: The going gets tough and he does not complete any walls, but works the
whole day. At the end of Day2:
BCWS=200, ACWP=$150, BCWP=$200
We are on schedule and below cost

Day3: The going is still tough, he works like mad but no more walls are
completed
BCWS=300, ACWP=$250, BCWP=$200
We are behind schedule and under cost

Day 4 He brings a buddy at the same rate. They complete the one wall (so we
have three walls complete)
BCWS=$400, ACWP=$450, BWCP=$300

Day 5 - They all play golf.
BCWS=$500, ACWP=450, BCWP=$300
We are futher behind schedule

Day 6 - Three guys work and complete 4 more walls
BCWS=$600, ACWP=$750m BCWP=$700
We are over target cost but ahead of schedule

Get the idea? With these numbers you can do all types of predictions to
determine the cost at complete, when they will finish, etc.

Here is a link to some great formulas:
https://acc.dau.mil/CommunityBrowser.aspx?id=19577
On that page, click the link for the "Gold Card" and you will get it.

Or try here:
http://www.acceleratedpm.com/services/GoldCard.pdf
--
If this post was helpful, please consider rating it.

Jim Aksel, MVP

Check out my blog for more information:
http://www.msprojectblog.com
 

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