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1. PMI Project Management
Professional (PMP)® Workshop

2. Project Cost Management
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2

3. Control Costs
Inputs
Project Management Plan: Cost Management plan
and Cost baseline
Project Funding Requirements include projected
expenditures and anticipated liabilities
Work Performance Data
OPA
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4. What is EVMS?
EVMS is the primary project
management tool...
that integrates the
Scope, schedule, and cost
parameters of the contract.

5. Why do we need Early Warning?
Course corrections are easier
when you have time to make
small adjustments
It’s too late when you’re this
close to the iceberg!

6. Basic Elements
PV Planned Value (BCWS)
(Estimated value of work planned)
EV Earned Value (BCWP)
(Estimated value of work performed)
AC Actual Cost
(Actual Cost of Work Performed)
BAC Budget at Completion
(How much is budgeted for total project effort)
EAC Estimate at Completion ( Current
expectation of total project cost)
ETC Estimate to complete (How much more
it will cost to finish the project)
VAC Variance at completion (How much over
or under budget the cost at the end of project)
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7. Month 1
PV = $1,000
Month 4
PV = $1,000
Month 3
PV = $1,000
Month 5
PV = $1,000
Month 2
PV = $1,000
BCWS is aggregated and summed as the performance
measurement baseline
Total Budget = $5,000
Total PV = $5,000
Planned Value – PV
(Budgeted Cost of Work Scheduled)

8. Budget at Completion (BAC)
$
time
BAC
$
$
$
$
$
$
$
• when all work has been phased, cumulative PV = BAC
e.g., $5,000 = $5,000
$5,000
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9. the EARNED VALUE concept
We’re at the end of the
second month, but only
1 section of track is
complete. Value of
work performed = $1,000
You earn value the same way
as it was budgeted in baseline
Earned Value
(Budgeted Cost of Work Performed)

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