Budgeted Cost of Work Scheduled ("BCWS")

Test Your Knowledge

BCWS Quiz

Instructions: Choose the best answer for each question.

1. What does BCWS stand for?

a) Budgeted Cost of Work Scheduled b) Budgetary Cost of Work Spent c) Budgeted Cost of Work Performed d) Budgetary Control of Work Scheduled

2. BCWS represents:

a) The actual cost of work completed. b) The total planned cost of work that should have been completed by a specific point in time. c) The difference between planned cost and actual cost. d) The cost of resources used in a project.

3. Which of the following is NOT a benefit of using BCWS?

a) Monitoring project progress. b) Identifying potential cost overruns. c) Forecasting future costs. d) Determining the actual cost of work performed.

4. BCWS is a key component of:

a) Project scheduling. b) Risk management. c) Earned Value Management. d) Quality control.

5. When comparing BCWS with the Actual Cost of Work Performed (ACWP), a difference indicates:

a) The project is on schedule and within budget. b) There is a potential cost overrun or schedule delay. c) The project has been completed successfully. d) The project is using more resources than planned.

BCWS Exercise

Scenario:

A project has a total budget of $100,000. The planned schedule indicates that by the end of week 4, 30% of the work should be completed.

Task:

Calculate the BCWS for the end of week 4.

Techniques

Chapter 1: Techniques for Calculating Budgeted Cost of Work Scheduled (BCWS)

This chapter delves into the practical techniques for calculating BCWS. It provides a step-by-step guide to understanding the process:

1. Define the Project Scope: Begin by clearly defining the scope of the project, including all planned activities and deliverables. This ensures a comprehensive understanding of what needs to be accomplished.

2. Create a Detailed Schedule: Develop a comprehensive project schedule that breaks down the project into smaller tasks and milestones. The schedule should include realistic durations and dependencies between tasks.

3. Assign Costs to Each Activity: Assign a budget to each activity in the project schedule. These costs should reflect the resources required, including labor, materials, equipment, and overhead.

4. Determine the Schedule Period: Define the specific point in time for which you want to calculate BCWS. This could be a specific date, week, or any other defined period.

5. Calculate BCWS for the Period: Add up the costs of all activities scheduled to be completed by the defined period. This includes activities that are already finished, in progress, and not yet started.

Example:

Imagine a project with the following activities and costs:

| Activity | Duration (Days) | Cost | |---|---|---| | Design | 10 | $10,000 | | Development | 15 | $20,000 | | Testing | 5 | $5,000 | | Deployment | 3 | $3,000 |

If you want to calculate the BCWS for the first 20 days, the calculation would be:

• Day 1-10: Design (Cost: $10,000)
• Day 11-25: Development (Cost: $20,000)
• BCWS for 20 days: $10,000 + $20,000 = $30,000

6. Incorporate Level of Effort and Apportioned Effort: For activities with Level of Effort (LOE) or apportioned effort, calculate the relevant portion of their budget for the defined period and include it in the total BCWS.

7. Document and Track BCWS: Maintain a clear and consistent record of BCWS calculations. This allows for easy tracking of progress and identification of deviations from the planned budget.

By understanding and implementing these techniques, project teams can effectively calculate BCWS and gain valuable insights into their project's financial performance.