Budgeted cost of work performed (BCWP) also called earned value (EV), is the budgeted cost of work that has actually been performed in carrying out a scheduled task during a specific time period. The BCWP is the sum of the budgets for completed work packages and completed portions of open work packages, plus the applicable portion of the budgets for

level of effort In project management, level of effort (LOE) is a support-type project activity that must be done to support other work activities or the entire project effort. It usually consists of short amounts of work that must be repeated periodically. Exam ...

and apportioned effort.EVM Glossary
/ref> (The items identified in the

Work breakdown structure A work-breakdown structure (WBS) in project management and systems engineering is a breakdown of a project into smaller components. It is a key project management element that organizes the team's work into manageable sections. The Project Mana ...

plus overhead costs, plus costs related in proportion to the planning and performance.) According to the

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(7th edition) by the

Project Management Institute The Project Management Institute (PMI, legally Project Management Institute, Inc.) is a U.S.-based not-for-profit professional organization for project management. Overview PMI serves more than five million professionals including over 680,0 ...

(PMI), Earned Value (EV) is defined as the "measure of work performed expressed in terms of the budget authorized for that work." BCWP is a term in

Earned value management Earned value management (EVM), earned value project management, or earned value performance management (EVPM) is a project management technique for measuring project performance and progress in an objective manner. Overview Earned value manag ...

approach to

Project management Project management is the process of supervising the work of a Project team, team to achieve all project goals within the given constraints. This information is usually described in project initiation documentation, project documentation, crea ...

. BCWP is contrasted to Budgeted Cost of Work Scheduled (BCWS) also called Planned Value (PV). BCWS is the sum of the budget items for all work packages, planning packages, and overhead which was scheduled for the period, rather than the cost of the work actually performed. BCWP is also contrasted to Actual Cost of Work Performed (ACWP) which measures the actual amount spent rather than the budgeted estimates.

Example

To illustrate the difference between the three terms, assume that a schedule contains a task "Test hardware" estimated to run from 1 January to 10 January and to cost $1000, and that this is a simple effort with no overhead or allocated costs. However on 5 January, halfway through the time allowed, the work is 30% complete and has spent $250. :* BCWP is $1000 (budgeted cost) times 30% (work performed), or $300 :* BCWS is $1000 (budgeted cost) times 50% (scheduled amount), or $500 :* ACWP is $250 The comparison in

would view this as behind schedule and costing less overall than expected. The detailed calculation should multiply % complete of each task (completed or in progress) by its planned value

Citations

References

* {{DEFAULTSORT:Budgeted Cost Of Work Performed Cost engineering Cost of work scheduled

Example

See also

Citations

References