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 and apportioned effort.
EVM Glossary
/ref> (The items identified in the Work breakdown structure plus overhead costs, plus costs related in proportion to the planning and performance.)
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 leading the work of a team to achieve all project goals within the given constraints. This information is usually described in project documentation, created at the beginning of the development process. Th ...
.
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 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 ...
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
See also
*Glossary of project management
A glossary of terms relating to project management and consulting.
A
* Agile software development is a set of fundamental principles about how software should be developed based on an agile way of working in contrast to previous heavy-handed ...
*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 ...
References
{{DEFAULTSORT:Budgeted Cost Of Work Performed
Cost engineering
Cost of work scheduled