Procurement & Pricing
Project Control
Project Control
Project Control
Project Control
100
A ______ contract is when the actual price is not determined until the end of the project when actual costs are known.
Cost Plus Fixed Fee


100
EVM element that includes Work and Record is known as _____.
Execute
100
What are the four PV/EV Measurement Techniques?
1. Fixed Formula (50/50 or 0/100)
2. Weighted Milestones
3. Percent Complete

4. Level of Effort

100
What are the four levels of a defined Work Package?
1. Level 1 - Project (1.0)

2. Level 2 - Phase (1.x)

3. Level 3 - Major Deliverables (1.x.x)

4. Level 4 - Minor Deliverables (1.x.x.x)

100
What is the formula to check resource utilization?
Cost Performance Index (CPI) = EV / AC


200
The CPIF Example - 60%
Original Cost Estimate = $100k, plus "allowable" costs will be reimbursed,
Fee (20%) = $20k, Target Price = $120k

Actual Price = reimbursement + Fee

Cost-Sharing Ratio = 60/40 (Contractor/Client), hence:
if Cost <= $100k, client will reimburse cost plus 60% amount below $100k, 
If Cost >= $100k, client will reimburse $100k plus 40%of the amount beyond $100k

Example: If cost = $80k ($20k Savings) client will reimburse $80k plus $12k (60% savings), or $92k

Thus price = reimbursement + fee = $92k + $20 = $112k

Client "saves" $8k from target price, contractor "earns" $32k profit.
200
EVM element that measures, analyze, and report is known as _____.
Control
200
The _______ Measurement technique is defined as the value of work that is linked to the start and finish.
Fixed Formula (50/50 or 0/100)
200
______ is the total costs actually incurred and recorded in accomplishing work performed during a given time period.
Actual Cost, aka Actual Cost of Work Performed (ACWP)
200
What is formula to project cost?
Estimate at Completion (EAC) = AC + (BAC - EV)
or

EAC = (BAC / CPI)


300

The CPIF Example - 40%

Original Cost Estimate = $100k, plus "allowable" costs will be reimbursed,

Fee (20%) = $20k, Target Price = $120k

Actual Price = reimbursement + Fee

Cost-Sharing Ratio = 60/40 (Contractor/Client), hence:

if Cost <= $100k, client will reimburse cost plus 60% amount below $100k,

If Cost >= $100k, client will reimburse $100k plus 40%of the amount beyond $100k

Example: If cost = $200k ($100k overrun) client will reimburse $100k plus $40k (40% overrun), or $140k

Thus price = reimbursement + fee = $140k + $20 = $160k

Client pays $40k more than target price, contractor takes a loss of $40k ($200k - $160k).

300
The five steps for setting the stage for _______ are:
1. Define the Work Packages,

2. Schedule the Work Packages, 
3. Assign the budge to Work Packages,
4. Determine the Planned Value (PV) (aka, BCWS),
5. Establish the Performance Measurement Baseline (PMB)

Earned Value Analysis
300

The _______ Measurement technique that is the value of work linked to ACHIEVEMENT of the milestones.

Weighted Milestones
300
What is the formula to check the Schedule Variance?
Schedule Variance (SV) = Earned Value (EV) minus Planned Value (PV)
300
What is the formula to efficiently us remaining resources?
To-Complete Performance Index (TCPI) = (BAC - EV) / (BAC - AC)


400
Earned Value Management (EVM) includes these three elements of _____, _____, and _____.
Plan, Execute, and Control
400

The _____ is the authorized budget assigned to the scheduled work to be accomplished.

Planned Value (PV), aka Budget Cost of Work Scheduled (BCWS),

400

The _______ Measurement technique is known as the value of work linked to a percent of the work.

Percent Complete
400
What is the formula to check time efficiently?
Schedule Performance Index (SPI) = EV / PV
400
What is the formula to check over/under of the budget at completion?
Variance at Completion (VAC) = BAC - EAC


500
EVM element that includes Scope, Schedule, and Cost is known as _____.
Plan
500
The _______ is the value of work PERFORMED  expressed in terms of the budget assigned to that work.
Earned Value (EV), aka Budgeted Cost of Work Performed (BCWP)
500

The _______ Measurement technique that is defined as the value of work linked to time.

Level of Effort
500
What is the formula to check the budget?
Cost Variance (CV) = EV - Actual Cost (AC)
500
If the SPI > 1.0 = (Good/Bad)

If the CPI > 1.0 = (Good/Bad)
SPI > 1.0 = Good

CPI > 1.0 = Good


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