Project Evaluation Tools and Techniques Free Essay Example, 1500 words

Two of the most important areas of any project that need to be measured are cost and schedule, and hence are the focus of all progress measurement tools. Every measurement, at the end of the day, boils down to cost or schedule. On way to measure project, performance is to see whether costs are in line with the budget projections. If they are not, there is a variance between the actual cost and the budgeted cost. Cost variance is the difference between the Budgeted Cost of Work Performed (BCWP) and the Actual Cost of Work Performed (ACWP). Therefore, CV = BCWP- ACWP. If the result is a positive answer, the work was performed under budget, if however, it comes as a negative answer, it means the work was over the budget (Verzuh, 2008). Calculating cost variances early in the project can be useful for meeting cist constraints in the future since it assumes that current trends will continue (Verzuh, 2008). How the cost variance can be approved is by adopting risk management throughout t he life of the project, and to keep going back to the requirements to see whether the project is being developed within scope. We will write a custom essay sample on Project Evaluation Tools and Techniques or any topic specifically for you Only $17.96 $11.86/page However, the scope tends to creep throughout the project when the customer keeps increasing or changing requirements. Therefore, one way to measure project success is whether any changes in the scope have been identified. The failure or success of the project will depend on whether the change in scope offers a potential risk to the outcome of the project. For example, if a new customer requirement is such that it requires ordering additional hardware and will take three more weeks to build, the outcome of the project will be very adversely affected.