Integrated Cost and Schedule Control

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one (Schedule Control). But at the same time, the budgeted cost and the actual cost can also be balanced (Cost Control). Nevertheless, if this aspects are analyzed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the Earned Value Management (EVM) technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

Background

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Application

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Schedule Control

In order to perform a schedule control, the next steps should be followed :

1. Development of schedule having using management tools such as the WBS (Work breakdown structure) and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, etc.
2. Communication of the schedule using, for example, a Gant Chart.
3. Evaluation and information of how the project is being accomplished.
4. Identification of problems comparing the planned schedule to the executed one.
5. Development of procedures for correcting such errors and schedule redirection.

Cost Control

A cost control system should follow the next steps:

1. Distribution of the budget through the different tasks of the project.
2. Measurement and comparison of the planned and actual performance.
3. Determination of all the variances to what was planned.
4. Analysis and implementation of corrective measures.

Drawbacks and Limitations

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References

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