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BCWP, BCWS & ACWP RRS feed

  • Question

  • Hello All

    Got few doubt in MS Project hope you answer

    1. If completion of a task, if the actual work is more than planned work so BCWS and BCWP should show variance? however at the end both are showing same date

    2. Is Actual cost equal to ACWP of that task. I'm getting difference.

    Need explanation on these points

    Thanks

    Anil Mahapatra

    Thursday, May 21, 2015 9:25 AM

Answers

  • Have a look to this excellent article about EVM.

    BCWS (Budgeted Cost of Work Scheduled): How much work should be done by now? The BCWS (budgeted cost of work scheduled) fields contain the cumulative time phased baseline costs up to the status date or today's date. 

    BCWP (Budgeted cost of work performed): How much did we budget for the work we’ve done? BCWP is the cost of the task work actually done. BCWP is also called as Earned Value. Earned value uses your original cost estimates saved with a baseline and your actual work to date to show whether the actual costs incurred are on budget.) i.e. BCWP = % complete * Baseline Cost till Status Date.

    At the end of the project, the BCWP will be equal to the baseline cost (since %complete=100%), such as the BCWS which is the cumulative baseline cost up to the status date, so not related to the % complete. Thus at the end of the project, indeed both should be equal. Theoritically, both might be equal all along the project if the actual work always stick to the baseline work, which is unlikely.

    In most of the case, the ACWP is equal to the sum of actual cost, but still, you have to consider the status date. If you have actual after the status date, then the actual work will be greater than then the ACWP.


    Hope this helps,


    Guillaume Rouyre, MBA, MVP, P-Seller |

    • Marked as answer by AnilMahapatra Wednesday, March 9, 2016 6:52 AM
    Thursday, May 21, 2015 12:30 PM
    Moderator

All replies

  • Hi Anil,

    For your first question, note that BCWS and BCWP both the Baseline, ie the actuals will be compared with the Baseline and not the planned cost. Then could you explain what do you mean by "same date"? EVM data are cost based and not dates. But indeed if you spent more money that you planned, the BCWP should be greater than the BCWS. Remember also that I take the cost up to the status date, not the current date.

    For your second question, again, be sure to consider the status date and not the current date. You might have actual costs AFTER the status date which will not be included in the ACWP.


    Hope this helps,


    Guillaume Rouyre, MBA, MVP, P-Seller |

    Thursday, May 21, 2015 10:24 AM
    Moderator
  • Thank you Rouyre

    mistake : it was "same cost" not "same date"

    In this case the baseline work is not equal to Actual work still BCWP=BCWS

    The Actual cost is not equal to ACWP

    And the status date is the project finish date.

    Now can u clarify on my understanding on this???

    Thank you

    Anil Mahapatra

    Thursday, May 21, 2015 11:32 AM
  • Ok, the status date might be the culprit. The EVM indicators (BCWP, BCWS, ACWP) summarize the actual cost or Baseline costs up to a certain date, which is the status date (accessible from the project tab of the ribbon or the project information dialog box). The status date is the date your project plan is up to. For example, if you enter the project progress as per today, the status date must be today. But if the resource made theirs timesheet on last friday, then your progress is up to friday and not today (meaning you don't have the actual between friday and today). In this case the status date must be set on last friday. This is important because if we take again this example, if the status date is today, Project will consider that the missing actuals from friday to today are late work. Thus your EVM will not be relevant, showing you are late whereas you might not be.

    In all cases, the status date cannot be and must not be the project finish date.


    Hope this helps,


    Guillaume Rouyre, MBA, MVP, P-Seller |


    Thursday, May 21, 2015 11:38 AM
    Moderator
  • What is the baseline duration, baseline start, baseline finish, baseline cost?

    There are 14 working days between 21-05 and 09-06 and if this is all standard calendar with 8 hours/day and Saturday and Sunday nonworking, and Mr X is assigned at 100%, this would be 112 hours of work.

    Is your baseline work based on $10/hour over 10 8 hour days? This would explain BCWS = $800.

    Thursday, May 21, 2015 11:58 AM
  • Thank you so much for ur quick response

    Now the status date as i said i've updated then only am updating the project.

    now if you can clarify

    1. the BCWS will be same as BCWP at the end of project ? weather the actual work differs form planed.

    2. The Actual cost is not equal to ACWP of the activity?

    Thank you

    Anil Mahapatra

    Thursday, May 21, 2015 12:18 PM
  • Have a look to this excellent article about EVM.

    BCWS (Budgeted Cost of Work Scheduled): How much work should be done by now? The BCWS (budgeted cost of work scheduled) fields contain the cumulative time phased baseline costs up to the status date or today's date. 

    BCWP (Budgeted cost of work performed): How much did we budget for the work we’ve done? BCWP is the cost of the task work actually done. BCWP is also called as Earned Value. Earned value uses your original cost estimates saved with a baseline and your actual work to date to show whether the actual costs incurred are on budget.) i.e. BCWP = % complete * Baseline Cost till Status Date.

    At the end of the project, the BCWP will be equal to the baseline cost (since %complete=100%), such as the BCWS which is the cumulative baseline cost up to the status date, so not related to the % complete. Thus at the end of the project, indeed both should be equal. Theoritically, both might be equal all along the project if the actual work always stick to the baseline work, which is unlikely.

    In most of the case, the ACWP is equal to the sum of actual cost, but still, you have to consider the status date. If you have actual after the status date, then the actual work will be greater than then the ACWP.


    Hope this helps,


    Guillaume Rouyre, MBA, MVP, P-Seller |

    • Marked as answer by AnilMahapatra Wednesday, March 9, 2016 6:52 AM
    Thursday, May 21, 2015 12:30 PM
    Moderator