Linking deliverables with cost and earned value
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0:30 – Creating Deliverables and the Schedule
1:40 – Linking widgets to costs, create S-curve
4:10 – Measuring widgets and costs.
In this video, we will discover the missing link between deliverables and costs.
When we plan a project, we schedule the activities that create the deliverables. What we are basically creating is the schedule baseline and later, we cost these activities based on the cost to create the deliverables.
In our simple case where we are creating 10 widgets over 10 periods, we plan to create 1 widget per period. In order to obtain the cost overview, we have to multiply the widgets with their cost which gives the cost baseline or the S-curve (in our case a straight line).
Basically, we suppose that the deliverables are created at a specific rate and that they have a specific cost.
When we start execution and start creating the deliverables over the duration of the project, we report the completed deliverables at a specific moment in time, and multiply the deliverables with their cost. We can compare this with the S-curve and see how the cost related to the completed deliverables is evolving.
By reporting the completed deliverables over time and their cost, we can compare the planned creation of deliverables with the actual one. This is an overview of how the project is progressing related to the schedule.
Based on the actual costs, we can see what the creation of the deliverables actually cost and compare them with the cost of the deliverables that have been completed.
the missing link is the link between the schedule, the actual progress and the actual costs. This was missing in the classical approach since it never took into account how many deliverables were actually completed.
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