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According to the PMBOK (7th edition) by the Project Management Institute (PMI), Cost performance index is a "measure of the cost efficiency of budgeted resources expressed at the ratio of earned value to actual cost." [19] = CPI greater than 1 is favorable (under budget).
Devaux's Index of Project Performance (usually known as the DIPP) is a project management performance metric [1] formulated by Stephen Devaux as part of the total project control (TPC) approach to project and program value analysis. It is an index that integrates the three variables of a project (scope, time and cost) into a single value-based ...
The items identified in the Work breakdown structure plus overhead costs, plus costs related in proportion to the planning and performance.) According to the PMBOK (7th edition) by the Project Management Institute (PMI), Earned Value (EV) is defined as the "measure of work performed expressed in terms of the budget authorized for that work." [3]
Introduced with TPC are a variety of project management metrics and techniques, among them critical path drag, [2] [3] the value breakdown structure (VBS), Devaux's Index of Project Performance (the DIPP), [4] Doubled Resource Estimated Duration (DRED), and Cost of Leveling with Unresolved Bottlenecks (CLUB).
A performance indicator or key performance indicator (KPI) is a type of performance measurement. [1] KPIs evaluate the success of an organization or of a particular activity (such as projects, programs, products and other initiatives) in which it engages. [ 2 ]
Project Cost Management (PCM) is the dimension of project management which aims to ensure that a project is completed within its approved budget. [1] [2] It encompasses several specific project management activities including estimating, job controls, field data collection, scheduling, accounting and design, and uses technology to measure cost and productivity through the full life-cycle of ...
(2,000,000 (target cost)) + 200,000 (the profit the buyer pays to the seller) + (2,312,500 - 2,000,000)*0.8 = 2450000. This is a term used in project management when managing specific fixed price contracts. The reason to calculate PTA is that when executing the contract, actual cost is the only finance measurement.
Basis of estimate (BOE) is a tool used in the field of project management by which members of the project team, usually estimators, project managers, or cost analysts, calculate the total cost of the project.