DTU ProjectLab - User contributions [en-gb]

Integrated Cost and Schedule Control

2015-09-25T08:33:32Z

S150793:

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline cannot tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The first step in order to apply the EVM technique is to define the basic parameters, which have to be evaluated and compared and that are described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=Conclusion=

All in all, this article has shown the importance of not only doing a Schedule and Cost control, but also of the integration of those types of analysis. By using the EVM technique, one can have an overall vision of the performance of the project and avoid making inappropriate decisions. However, this method must not be used alone, but together with other ones focussed in the Quality of the whole work. Moreover, even when it is a great tool concerning Project Control, it maybe hard to implement over a whole Program or Portfolio, due to their higher complexity and the interactions existing between the projects.

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-25T08:30:32Z

S150793:

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you cannot only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline cannot tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The first step in order to apply the EVM technique is to define the basic parameters, which have to be evaluated and compared and that are described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=Conclusion=

All in all, this article has shown the importance of not only doing a Schedule and Cost control, but also of the integration of those types of analysis. By using the EVM technique, one can have an overall vision of the performance of the project and avoid making inappropriate decisions. However, this method must not be used alone, but together with other ones focussed in the Quality of the whole work. Moreover, even when it is a great tool concerning Project Control, it maybe hard to implement over a whole Program or Portfolio, due to their higher complexity and the interactions existing between the projects.

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T11:11:20Z

S150793:

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The first step in order to apply the EVM technique is to define the basic parameters, which have to be evaluated and compared and that are described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=Conclusion=

All in all, this article has shown the importance of not only doing a Schedule and Cost control, but also of the integration of those types of analysis. By using the EVM technique, one can have an overall vision of the performance of the project and avoid making inappropriate decisions. However, this method must not be used alone, but together with other ones focussed in the Quality of the whole work. Moreover, even when it is a great tool concerning Project Control, it maybe hard to implement over a whole Program or Portfolio, due to their higher complexity and the interactions existing between the projects.

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T11:08:50Z

S150793: /* Conclusion */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The first step in order to apply the EVM technique is to define the basic parameters, which have to be evaluated and compared and that are described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=Conclusion=

All in all, this article has shown the importance of not only doing a Schedule and Cost control, but also of the integration of those types of analysis. By using the EVM technique, one can have an overall vision of the performance of the project and avoid making inappropriate decisions. However, this method must not be used alone, but together with other ones focussed in the Quality of the whole work. Moreover, even when it is a great tool concerning Project Control, it maybe hard to implement over a whole Program or Portfolio, due to their higher complexity and the interactions existing between the projects.

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T11:08:23Z

S150793: /* Conclusion */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The first step in order to apply the EVM technique is to define the basic parameters, which have to be evaluated and compared and that are described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=Conclusion=

All in all, this article has shown the importance of not only doing a Schedule and Cost control, but also of the integration of those types of control. By using the EVM technique, one can have an overall vision of the performance of the project and avoid making inappropriate decisions. However, this method must not be used alone, but together with other ones focussed in the Quality of the whole work. Moreover, even when it is a great tool concerning Project Control, it maybe hard to implement over a whole Program or Portfolio, due to their higher complexity and the interactions existing between the projects.

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T11:02:19Z

S150793: /* Conclusion */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The first step in order to apply the EVM technique is to define the basic parameters, which have to be evaluated and compared and that are described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=Conclusion=

All in all, this article has shown the importance of not only doing a Schedule and Cost control, but also of the integration of those types of control. By using the EVM technique, one can have an overall vision of the performance of the project and avoid making inappropriate decisions. However, this method must not be used alone, but together with other ones focussed in the Quality of the whole work. Moreover,

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T11:01:23Z

S150793: /* Conclusion */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The first step in order to apply the EVM technique is to define the basic parameters, which have to be evaluated and compared and that are described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=Conclusion=

All in all, this article has shown the importance of not only doing a Schedule and Cost control, but also of the integration of those types of control. By using the EVM technique, one can have an overall vision of the performance of the project and avoid making inappropriate decisions. However, this method must not be used alone, but together with other ones focussed in the Quality of the work. Moreover,

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T10:54:00Z

S150793:

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The first step in order to apply the EVM technique is to define the basic parameters, which have to be evaluated and compared and that are described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=Conclusion=

=References=
<references/>

Talk:Integrated Cost and Schedule Control

2015-09-24T10:51:45Z

S150793: /* Reviewer 2 (s141943) */

Anna: I like the topic you have chosen.
I would just like to comment on the fact that describing one method in great details can sometimes be more valuable than mentioning three different ones but without going into as many details. However, if you do have time to describe all 3 in depth this would of course also give a great end result.

=Reviewer 1 (Konspits)=
'''General Overview''': Very good choice of topic as it is relevant to project management. Your article is very engaging and gives a clear idea of the suggested method that combines these two significant factors for the success of a project.

Gramatically, everything is correct. It is easy to follow and the main points are well understood as there is a logical flow in the structure.
Very well written article with appropriate and targeted references.

Illustrations: Need to be aligned with the text. Pay attention when formatting for final hand-in.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

Improvements: I would like to see a conclusion section if you still have some words left. You should also try to figure out if the suggested method can stand from a portfolio management perspective. Just an idea! You could include this aspect in your conclusion.

: ''Totally right, a conclusion section has been added and I have also tried to include the aspect that you mention.''

Other than that, great job!Looking forward to reading your final version! Good luck!

: ''Thanks a lot for your suggestions.''

='''Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30:''' =

The abstract is engaging and provides the reader with desire to go in-depth with the topic. Is this the matter of questions used – I don’t know – it works.
*It is really well structured article with appropriate sectioning and consistent flow between the section
*Article’s language is appropriate for an academic paper, however, you should get rid of all abbreviations. ‘I am’ instead of ‘I’m’ looks more professional and academically correct.

::''Totally agree, I have changed those abbreviations. Thanks.''

*Almost in every case the placing and interaction of text and tables/illustrations is correct, however, in some cases it still needs to be resolved. In some places (e.g. EVM technique section) text goes in-between two tables – it does not look too elegant.

::''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

*What is the source of the examples? Are those self-made? If not, do you have the copyrights?

::''Yes, they are self-made with invented data, just to exemplify what I wanted to show.''

*The article covers the topic and fits in the methodology description case. To my mind, a section of conclusions and your personal-opinion might be a good thing to add.

::''You are right, a sections of conclusions it is really a good thing to add. Thank you for the suggestion.''

All in all the article presents the method well and I learned a lot. Pleasure to read. You have wrote more than 3000 words but in a case of consistent article that covers a wide range of methodologies within one topic it seems more than fine. Well described bibliography! Polish everything up and soon you will be done.

::''Thank you very much for your suggestions. I really appreciate them.''

=Reviewer 2 (s141943)=
*In general, I guess you hit a really relevant and important topic. I saw that you accepted Anna´s suggestion which was a good idea in my opinion.

The grammar is good and academic, however I would rather write instead of shouldn´t and can´t the should not and can not versions. It appears around 3 times in the article, so it is a minor issue.

:: ''I have made those changes. Thanks, it is better written like that.''

The logical flow is good and really great within the section. It was good to read and the parts are build up on each other. I also liked that you refer to the different section within the article. Also, that you refer to the figure is a great point.
However, I would suggest a bit different overall structure for the article.

The cite and acknowledgement is precise and appropriate I would mention also that I like the links in the text in some cases. In addition, use “…” for the quotes.

:: '' I have written them with italics style, but you are right, they should have quotation marks.''

*Abstract:
Great start, good explanation. The last 2 phases really good, I liked it. It shows why this topic is relevant and worth to read. Maybe I would emphasize a bit more the importance to monitor the actual state of the project, because it is hard to monitor, but you did later, so it is ok.

*Table of contents:
I write my suggestion: 2.2.1/ 2.3.1/ 2.3.2 I guess there is no need for them

:: ''I see that maybe they are not so relevant in the table of contents, but I am going to leave them because I think that it is a good way to know where to find the specific application of each tool.''

1 Background
2 Application…. (not just one word maybe)
2.1 Schedule control
2.2 Cost control
2.3 Integrated….
2.3.1 EVM Techniques
3. Benefits and advantages
4 Limitations
5 Conclusion
6 References

:: ''I have changed the application title as you suggest and added a conclusion section. The background that I have written already includes the benefits and advantages of the method. However, I have changed the title so that it is more clear where to find those benefits.''

*Background:
Really good in general, I also liked the quotes and that you refer to the figure. However, I would write the second quote with my own words and just refer to the figure and literature. I guess this 2 big quotes are too close to each other. But it is a matter of taste I would say.

:: ''I understand your point of view. However, the second quote of the PMI's PMBOK® Guide really reflects what I want to show, so I prefer to leave it with the exact words that they use.''

Also the part where you talk about Judgment of experts, analytical techniques, etc is really good and logical. It would be more visible with bold letters… to make it more structured and followable.

:: '' You are right, the use of bold letters makes it more followable.''

*Application…..
Great intro for the section! No other comment.

*Schedule Control:
Really good intro. I like the form and that you keep this one through the other main parts of the article. I really appreciate such a consistency.

For table 1: maybe write some words about the techniques in general, or pick one why it is better than the other, or an example with some of them. Otherwise for me it look like a big (and informative) table is standing alone.

:: '' It is not the purpose of the article to explain the different techniques of Schedule Control, but to show the general purpose. Therefore, the table is used as a summary and to help the reader in order to perform a deeper study. However, you are right and I have written a short explanation of the purpose of the table so the reader understands it.''

*Cost control:
Again great intro and figure is also illustrative here.

*Integrated Cost and-…..
Maybe here for the bullet points I would write more with my own words than use quotes. Otherwise it is good. I have already indicated to make EVM technique as a subsection. Because in this way your focus is more visible from the first point.

:: ''I prefer to leave them like that, as they are definitions of terms. I find you suggestion of making the EVM technique as a subsection perfect. Thanks, like that it is really more visible from the first point.''

*Table 3 and the calculations:
I am not sure that it is worth to detail the calculation process with table 3 and the equations. If I were you I would rather explain in details the process and the interpretation of the results, than the actual equations. But, it is again a matter of taste. If you would use this mode, I would suggest to put somewhere a list of parameters/ abbreviations.

:: ''I prefer to leave the equations, because to calculate those parameters is one of the main objectives of the method.''

I liked the example very much! Good that you put here and even better that you make a comparing with EVM.

*Limitations:
Great part again, especially I liked that you talked about the QCQ/ QCM limitation, which can be crucial in case of a construction project. Good point!

*I miss a conclusion from the end.

:: ''Conclusion section done.''

*Reference:
Nice reference in quality and quantity as well.

::'' Thank you very much for your detailed suggestions. They have helped me a lot and I really appreciate the time you have invested.''

Talk:Integrated Cost and Schedule Control

2015-09-24T10:50:14Z

S150793: /* Reviewer 2 (s141943) */

Anna: I like the topic you have chosen.
I would just like to comment on the fact that describing one method in great details can sometimes be more valuable than mentioning three different ones but without going into as many details. However, if you do have time to describe all 3 in depth this would of course also give a great end result.

=Reviewer 1 (Konspits)=
'''General Overview''': Very good choice of topic as it is relevant to project management. Your article is very engaging and gives a clear idea of the suggested method that combines these two significant factors for the success of a project.

Gramatically, everything is correct. It is easy to follow and the main points are well understood as there is a logical flow in the structure.
Very well written article with appropriate and targeted references.

Illustrations: Need to be aligned with the text. Pay attention when formatting for final hand-in.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

Improvements: I would like to see a conclusion section if you still have some words left. You should also try to figure out if the suggested method can stand from a portfolio management perspective. Just an idea! You could include this aspect in your conclusion.

: ''Totally right, a conclusion section has been added and I have also tried to include the aspect that you mention.''

Other than that, great job!Looking forward to reading your final version! Good luck!

: ''Thanks a lot for your suggestions.''

='''Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30:''' =

The abstract is engaging and provides the reader with desire to go in-depth with the topic. Is this the matter of questions used – I don’t know – it works.
*It is really well structured article with appropriate sectioning and consistent flow between the section
*Article’s language is appropriate for an academic paper, however, you should get rid of all abbreviations. ‘I am’ instead of ‘I’m’ looks more professional and academically correct.

::''Totally agree, I have changed those abbreviations. Thanks.''

*Almost in every case the placing and interaction of text and tables/illustrations is correct, however, in some cases it still needs to be resolved. In some places (e.g. EVM technique section) text goes in-between two tables – it does not look too elegant.

::''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

*What is the source of the examples? Are those self-made? If not, do you have the copyrights?

::''Yes, they are self-made with invented data, just to exemplify what I wanted to show.''

*The article covers the topic and fits in the methodology description case. To my mind, a section of conclusions and your personal-opinion might be a good thing to add.

::''You are right, a sections of conclusions it is really a good thing to add. Thank you for the suggestion.''

All in all the article presents the method well and I learned a lot. Pleasure to read. You have wrote more than 3000 words but in a case of consistent article that covers a wide range of methodologies within one topic it seems more than fine. Well described bibliography! Polish everything up and soon you will be done.

::''Thank you very much for your suggestions. I really appreciate them.''

=Reviewer 2 (s141943)=
*In general, I guess you hit a really relevant and important topic. I saw that you accepted Anna´s suggestion which was a good idea in my opinion.

The grammar is good and academic, however I would rather write instead of shouldn´t and can´t the should not and can not versions. It appears around 3 times in the article, so it is a minor issue.

:: ''I have made those changes. Thanks, it is better written like that.''

The logical flow is good and really great within the section. It was good to read and the parts are build up on each other. I also liked that you refer to the different section within the article. Also, that you refer to the figure is a great point.
However, I would suggest a bit different overall structure for the article.

The cite and acknowledgement is precise and appropriate I would mention also that I like the links in the text in some cases. In addition, use “…” for the quotes.

:: '' I have written them with italics style, but you are right, they should have quotation marks.''

*Abstract:
Great start, good explanation. The last 2 phases really good, I liked it. It shows why this topic is relevant and worth to read. Maybe I would emphasize a bit more the importance to monitor the actual state of the project, because it is hard to monitor, but you did later, so it is ok.

*Table of contents:
I write my suggestion: 2.2.1/ 2.3.1/ 2.3.2 I guess there is no need for them

:: ''I see that maybe they are not so relevant in the table of contents, but I am going to leave them because I think that it is a good way to know where to find the specific application of each tool.''

1 Background
2 Application…. (not just one word maybe)
2.1 Schedule control
2.2 Cost control
2.3 Integrated….
2.3.1 EVM Techniques
3. Benefits and advantages
4 Limitations
5 Conclusion
6 References

:: ''I have changed the application title as you suggest and added a conclusion section. The background that I have written already includes the benefits and advantages of the method. However, I have changed the title so that it is more clear where to find those benefits.''

*Background:
Really good in general, I also liked the quotes and that you refer to the figure. However, I would write the second quote with my own words and just refer to the figure and literature. I guess this 2 big quotes are too close to each other. But it is a matter of taste I would say.

:: ''I understand your point of view. However, the second quote of the PMI's PMBOK® Guide really reflects what I want to show, so I prefer to leave it with the exact words that they use.''

Also the part where you talk about Judgment of experts, analytical techniques, etc is really good and logical. It would be more visible with bold letters… to make it more structured and followable.

:: '' You are right, the use of bold letters makes it more followable.''

*Application…..
Great intro for the section! No other comment.

*Schedule Control:
Really good intro. I like the form and that you keep this one through the other main parts of the article. I really appreciate such a consistency.

For table 1: maybe write some words about the techniques in general, or pick one why it is better than the other, or an example with some of them. Otherwise for me it look like a big (and informative) table is standing alone.

:: '' It is not the purpose of the article to explain the different techniques of Schedule Control, but to show the general purpose. Therefore, the table is used as a summary and to help the reader in order to perform a deeper study. However, you are right and I have written a short explanation of the purpose of the table so the reader understands it.''

*Cost control:
Again great intro and figure is also illustrative here.

*Integrated Cost and-…..
Maybe here for the bullet points I would write more with my own words than use quotes. Otherwise it is good. I have already indicated to make EVM technique as a subsection. Because in this way your focus is more visible from the first point.

:: ''I prefer to leave them like that, as they are definitions of terms. I find you suggestion of making the EVM technique as a subsection perfect. Thanks, like that it is really more visible from the first point.''

*Table 3 and the calculations:
I am not sure that it is worth to detail the calculation process with table 3 and the equations. If I were you I would rather explain in details the process and the interpretation of the results, than the actual equations. But, it is again a matter of taste. If you would use this mode, I would suggest to put somewhere a list of parameters/ abbreviations.

:: "I prefer to leave the equations, because to calculate those parameters is one of the main objectives of the method.''

I liked the example very much! Good that you put here and even better that you make a comparing with EVM.

*Limitations:
Great part again, especially I liked that you talked about the QCQ/ QCM limitation, which can be crucial in case of a construction project. Good point!

*I miss a conclusion from the end.

:: ''Conclusion section done.''

*Reference:
Nice reference in quality and quantity as well.

::'' Thank you very much for your detailed suggestions. They have helped me a lot and I really appreciate the time you have invested.''

Integrated Cost and Schedule Control

2015-09-24T10:44:24Z

S150793: /* Integrated Cost and Schedule Control */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The first step in order to apply the EVM technique is to define the basic parameters, which have to be evaluated and compared and that are described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T10:43:26Z

S150793: /* Earned Value Management (EVM) */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The first step in order to apply the EVM technique is to define the basic parameters, which have to be evaluated and compared and that are described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T10:40:56Z

S150793:

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T10:39:59Z

S150793: /* Integrated Cost and Schedule Control (EVM technique) */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control ==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===Earned Value Management (EVM)===

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T10:38:28Z

S150793: /* Integrated Cost and Schedule Control (EVM technique) */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

===EVM technique===

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T10:32:06Z

S150793: /* Schedule Control */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. As a summary and to help the reader in order to perform a deeper study, some of them are Mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T10:17:00Z

S150793:

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background and purpose=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application of the methods=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T10:06:57Z

S150793:

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''"Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''"The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''"Deviations from the planned performance."'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T10:00:04Z

S150793: /* Background */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan."''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''"The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1."''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:58:59Z

S150793: /* Background */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''''Analytical Techniques''''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''''Project Management Information System''''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''''Meetings''''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:58:24Z

S150793: /* Background */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''''Judgment of Experts''''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''Analytical Techniques''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''Project Management Information System''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''Meetings''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:57:49Z

S150793: /* Background */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''''Judgment of Experts'''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''Analytical Techniques''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''Project Management Information System''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''Meetings''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:57:21Z

S150793: /* Background */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the '''Judgment of Experts''' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of '''Analytical Techniques''' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the '''Project Management Information System''' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of '''Meetings''' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:48:26Z

S150793: /* Drawbacks and Limitations */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it does not include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they do not reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who do not have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:46:40Z

S150793: /* Integrated Cost and Schedule Control (EVM technique) */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can not tell you whether you are on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:45:58Z

S150793: /* When is it applicable? */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project will not be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:45:18Z

S150793: /* Background */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks should not be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Talk:Integrated Cost and Schedule Control

2015-09-24T09:43:55Z

S150793: /* Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30: */

Anna: I like the topic you have chosen.
I would just like to comment on the fact that describing one method in great details can sometimes be more valuable than mentioning three different ones but without going into as many details. However, if you do have time to describe all 3 in depth this would of course also give a great end result.

=Reviewer 1 (Konspits)=
'''General Overview''': Very good choice of topic as it is relevant to project management. Your article is very engaging and gives a clear idea of the suggested method that combines these two significant factors for the success of a project.

Gramatically, everything is correct. It is easy to follow and the main points are well understood as there is a logical flow in the structure.
Very well written article with appropriate and targeted references.

Illustrations: Need to be aligned with the text. Pay attention when formatting for final hand-in.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

Improvements: I would like to see a conclusion section if you still have some words left. You should also try to figure out if the suggested method can stand from a portfolio management perspective. Just an idea! You could include this aspect in your conclusion.

: ''Totally right, a conclusion section has been added and I have also tried to include the aspect that you mention.''

Other than that, great job!Looking forward to reading your final version! Good luck!

: ''Thanks a lot for your suggestions.''

='''Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30:''' =

The abstract is engaging and provides the reader with desire to go in-depth with the topic. Is this the matter of questions used – I don’t know – it works.
*It is really well structured article with appropriate sectioning and consistent flow between the section
*Article’s language is appropriate for an academic paper, however, you should get rid of all abbreviations. ‘I am’ instead of ‘I’m’ looks more professional and academically correct.

::''Totally agree, I have changed those abbreviations. Thanks.''

*Almost in every case the placing and interaction of text and tables/illustrations is correct, however, in some cases it still needs to be resolved. In some places (e.g. EVM technique section) text goes in-between two tables – it does not look too elegant.

::''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

*What is the source of the examples? Are those self-made? If not, do you have the copyrights?

::''Yes, they are self-made with invented data, just to exemplify what I wanted to show.''

*The article covers the topic and fits in the methodology description case. To my mind, a section of conclusions and your personal-opinion might be a good thing to add.

::''You are right, a sections of conclusions it is really a good thing to add. Thank you for the suggestion.''

All in all the article presents the method well and I learned a lot. Pleasure to read. You have wrote more than 3000 words but in a case of consistent article that covers a wide range of methodologies within one topic it seems more than fine. Well described bibliography! Polish everything up and soon you will be done.

::''Thank you very much for your suggestions. I really appreciate them.''

=Reviewer 2 (s141943)=
*In general, I guess you hit a really relevant and important topic. I saw that you accepted Anna´s suggestion which was a good idea in my opinion.

The grammar is good and academic, however I would rather write instead of shouldn´t and can´t the should not and can not versions. It appears around 3 times in the article, so it is a minor issue.

The logical flow is good and really great within the section. It was good to read and the parts are build up on each other. I also liked that you refer to the different section within the article. Also, that you refer to the figure is a great point.
However, I would suggest a bit different overall structure for the article.

The cite and acknowledgement is precise and appropriate I would mention also that I like the links in the text in some cases. In addition, use “…” for the quotes.

*Abstract:
Great start, good explanation. The last 2 phases really good, I liked it. It shows why this topic is relevant and worth to read. Maybe I would emphasize a bit more the importance to monitor the actual state of the project, because it is hard to monitor, but you did later, so it is ok.

*Table of contents:
I write my suggestion: 2.2.1/ 2.3.1/ 2.3.2 I guess there is no need for them

1 Background
2 Application…. (not just one word maybe)
2.1 Schedule control
2.2 Cost control
2.3 Integrated….
2.3.1 EVM Techniques
3. Benefits and advantages
4 Limitations
5 Conclusion
6 References

*Background:
Really good in general, I also liked the quotes and that you refer to the figure. However, I would write the second quote with my own words and just refer to the figure and literature. I guess this 2 big quotes are too close to each other. But it is a matter of taste I would say.

Also the part where you talk about Judgment of experts, analytical techniques, etc is really good and logical. It would be more visible with bold letters… to make it more structured and followable.

*Application…..
Great intro for the section! No other comment.

*Schedule Control:
Really good intro. I like the form and that you keep this one through the other main parts of the article. I really appreciate such a consistency.

For table 1: maybe write some words about the techniques in general, or pick one why it is better than the other, or an example with some of them. Otherwise for me it look like a big (and informative) table is standing alone.

*Cost control:
Again great intro and figure is also illustrative here.

*Integrated Cost and-…..
Maybe here for the bullet points I would write more with my own words than use quotes. Otherwise it is good. I have already indicated to make EVM technique as a subsection. Because in this way your focus is more visible from the first point.

*Table 3 and the calculations:
I am not sure that it is worth to detail the calculation process with table 3 and the equations. If I were you I would rather explain in details the process and the interpretation of the results, than the actual equations. But, it is again a matter of taste. If you would use this mode, I would suggest to put somewhere a list of parameters/ abbreviations.

I liked the example very much! Good that you put here and even better that you make a comparing with EVM.

*Limitations:
Great part again, especially I liked that you talked about the QCQ/ QCM limitation, which can be crucial in case of a construction project. Good point!

*I miss a conclusion from the end.

*Reference:
Nice reference in quality and quantity as well.

Talk:Integrated Cost and Schedule Control

2015-09-24T09:43:22Z

S150793: /* Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30: */

Anna: I like the topic you have chosen.
I would just like to comment on the fact that describing one method in great details can sometimes be more valuable than mentioning three different ones but without going into as many details. However, if you do have time to describe all 3 in depth this would of course also give a great end result.

=Reviewer 1 (Konspits)=
'''General Overview''': Very good choice of topic as it is relevant to project management. Your article is very engaging and gives a clear idea of the suggested method that combines these two significant factors for the success of a project.

Gramatically, everything is correct. It is easy to follow and the main points are well understood as there is a logical flow in the structure.
Very well written article with appropriate and targeted references.

Illustrations: Need to be aligned with the text. Pay attention when formatting for final hand-in.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

Improvements: I would like to see a conclusion section if you still have some words left. You should also try to figure out if the suggested method can stand from a portfolio management perspective. Just an idea! You could include this aspect in your conclusion.

: ''Totally right, a conclusion section has been added and I have also tried to include the aspect that you mention.''

Other than that, great job!Looking forward to reading your final version! Good luck!

: ''Thanks a lot for your suggestions.''

='''Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30:''' =

The abstract is engaging and provides the reader with desire to go in-depth with the topic. Is this the matter of questions used – I don’t know – it works.
*It is really well structured article with appropriate sectioning and consistent flow between the section
*Article’s language is appropriate for an academic paper, however, you should get rid of all abbreviations. ‘I am’ instead of ‘I’m’ looks more professional and academically correct.

::''Totally agree, I have changed those abbreviations. Thanks.''

*Almost in every case the placing and interaction of text and tables/illustrations is correct, however, in some cases it still needs to be resolved. In some places (e.g. EVM technique section) text goes in-between two tables – it does not look too elegant.

::''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

*What is the source of the examples? Are those self-made? If not, do you have the copyrights?

::'Yes, they are self-made with invented data, just to exemplify what I wanted to show.''

*The article covers the topic and fits in the methodology description case. To my mind, a section of conclusions and your personal-opinion might be a good thing to add.

::'' You are right, a sections of conclusions it is really a good thing to add. Thank you for the suggestion.''

All in all the article presents the method well and I learned a lot. Pleasure to read. You have wrote more than 3000 words but in a case of consistent article that covers a wide range of methodologies within one topic it seems more than fine. Well described bibliography! Polish everything up and soon you will be done.

::'''Thank you very much for your suggestions. I really appreciate them.''

=Reviewer 2 (s141943)=
*In general, I guess you hit a really relevant and important topic. I saw that you accepted Anna´s suggestion which was a good idea in my opinion.

The grammar is good and academic, however I would rather write instead of shouldn´t and can´t the should not and can not versions. It appears around 3 times in the article, so it is a minor issue.

The logical flow is good and really great within the section. It was good to read and the parts are build up on each other. I also liked that you refer to the different section within the article. Also, that you refer to the figure is a great point.
However, I would suggest a bit different overall structure for the article.

The cite and acknowledgement is precise and appropriate I would mention also that I like the links in the text in some cases. In addition, use “…” for the quotes.

*Abstract:
Great start, good explanation. The last 2 phases really good, I liked it. It shows why this topic is relevant and worth to read. Maybe I would emphasize a bit more the importance to monitor the actual state of the project, because it is hard to monitor, but you did later, so it is ok.

*Table of contents:
I write my suggestion: 2.2.1/ 2.3.1/ 2.3.2 I guess there is no need for them

1 Background
2 Application…. (not just one word maybe)
2.1 Schedule control
2.2 Cost control
2.3 Integrated….
2.3.1 EVM Techniques
3. Benefits and advantages
4 Limitations
5 Conclusion
6 References

*Background:
Really good in general, I also liked the quotes and that you refer to the figure. However, I would write the second quote with my own words and just refer to the figure and literature. I guess this 2 big quotes are too close to each other. But it is a matter of taste I would say.

Also the part where you talk about Judgment of experts, analytical techniques, etc is really good and logical. It would be more visible with bold letters… to make it more structured and followable.

*Application…..
Great intro for the section! No other comment.

*Schedule Control:
Really good intro. I like the form and that you keep this one through the other main parts of the article. I really appreciate such a consistency.

For table 1: maybe write some words about the techniques in general, or pick one why it is better than the other, or an example with some of them. Otherwise for me it look like a big (and informative) table is standing alone.

*Cost control:
Again great intro and figure is also illustrative here.

*Integrated Cost and-…..
Maybe here for the bullet points I would write more with my own words than use quotes. Otherwise it is good. I have already indicated to make EVM technique as a subsection. Because in this way your focus is more visible from the first point.

*Table 3 and the calculations:
I am not sure that it is worth to detail the calculation process with table 3 and the equations. If I were you I would rather explain in details the process and the interpretation of the results, than the actual equations. But, it is again a matter of taste. If you would use this mode, I would suggest to put somewhere a list of parameters/ abbreviations.

I liked the example very much! Good that you put here and even better that you make a comparing with EVM.

*Limitations:
Great part again, especially I liked that you talked about the QCQ/ QCM limitation, which can be crucial in case of a construction project. Good point!

*I miss a conclusion from the end.

*Reference:
Nice reference in quality and quantity as well.

Talk:Integrated Cost and Schedule Control

2015-09-24T09:42:50Z

S150793: /* Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30: */

Anna: I like the topic you have chosen.
I would just like to comment on the fact that describing one method in great details can sometimes be more valuable than mentioning three different ones but without going into as many details. However, if you do have time to describe all 3 in depth this would of course also give a great end result.

=Reviewer 1 (Konspits)=
'''General Overview''': Very good choice of topic as it is relevant to project management. Your article is very engaging and gives a clear idea of the suggested method that combines these two significant factors for the success of a project.

Gramatically, everything is correct. It is easy to follow and the main points are well understood as there is a logical flow in the structure.
Very well written article with appropriate and targeted references.

Illustrations: Need to be aligned with the text. Pay attention when formatting for final hand-in.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

Improvements: I would like to see a conclusion section if you still have some words left. You should also try to figure out if the suggested method can stand from a portfolio management perspective. Just an idea! You could include this aspect in your conclusion.

: ''Totally right, a conclusion section has been added and I have also tried to include the aspect that you mention.''

Other than that, great job!Looking forward to reading your final version! Good luck!

: ''Thanks a lot for your suggestions.''

='''Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30:''' =

The abstract is engaging and provides the reader with desire to go in-depth with the topic. Is this the matter of questions used – I don’t know – it works.
*It is really well structured article with appropriate sectioning and consistent flow between the section
*Article’s language is appropriate for an academic paper, however, you should get rid of all abbreviations. ‘I am’ instead of ‘I’m’ looks more professional and academically correct.

::''Totally agree, I have changed those abbreviations. Thanks.''

*Almost in every case the placing and interaction of text and tables/illustrations is correct, however, in some cases it still needs to be resolved. In some places (e.g. EVM technique section) text goes in-between two tables – it does not look too elegant.

**''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

*What is the source of the examples? Are those self-made? If not, do you have the copyrights?

**''Yes, they are self-made with invented data, just to exemplify what I wanted to show.''

*The article covers the topic and fits in the methodology description case. To my mind, a section of conclusions and your personal-opinion might be a good thing to add.

**'' You are right, a sections of conclusions it is really a good thing to add. Thank you for the suggestion.''

All in all the article presents the method well and I learned a lot. Pleasure to read. You have wrote more than 3000 words but in a case of consistent article that covers a wide range of methodologies within one topic it seems more than fine. Well described bibliography! Polish everything up and soon you will be done.

**'Thank you very much for your suggestions. I really appreciate them.''

=Reviewer 2 (s141943)=
*In general, I guess you hit a really relevant and important topic. I saw that you accepted Anna´s suggestion which was a good idea in my opinion.

The grammar is good and academic, however I would rather write instead of shouldn´t and can´t the should not and can not versions. It appears around 3 times in the article, so it is a minor issue.

The logical flow is good and really great within the section. It was good to read and the parts are build up on each other. I also liked that you refer to the different section within the article. Also, that you refer to the figure is a great point.
However, I would suggest a bit different overall structure for the article.

The cite and acknowledgement is precise and appropriate I would mention also that I like the links in the text in some cases. In addition, use “…” for the quotes.

*Abstract:
Great start, good explanation. The last 2 phases really good, I liked it. It shows why this topic is relevant and worth to read. Maybe I would emphasize a bit more the importance to monitor the actual state of the project, because it is hard to monitor, but you did later, so it is ok.

*Table of contents:
I write my suggestion: 2.2.1/ 2.3.1/ 2.3.2 I guess there is no need for them

1 Background
2 Application…. (not just one word maybe)
2.1 Schedule control
2.2 Cost control
2.3 Integrated….
2.3.1 EVM Techniques
3. Benefits and advantages
4 Limitations
5 Conclusion
6 References

*Background:
Really good in general, I also liked the quotes and that you refer to the figure. However, I would write the second quote with my own words and just refer to the figure and literature. I guess this 2 big quotes are too close to each other. But it is a matter of taste I would say.

Also the part where you talk about Judgment of experts, analytical techniques, etc is really good and logical. It would be more visible with bold letters… to make it more structured and followable.

*Application…..
Great intro for the section! No other comment.

*Schedule Control:
Really good intro. I like the form and that you keep this one through the other main parts of the article. I really appreciate such a consistency.

For table 1: maybe write some words about the techniques in general, or pick one why it is better than the other, or an example with some of them. Otherwise for me it look like a big (and informative) table is standing alone.

*Cost control:
Again great intro and figure is also illustrative here.

*Integrated Cost and-…..
Maybe here for the bullet points I would write more with my own words than use quotes. Otherwise it is good. I have already indicated to make EVM technique as a subsection. Because in this way your focus is more visible from the first point.

*Table 3 and the calculations:
I am not sure that it is worth to detail the calculation process with table 3 and the equations. If I were you I would rather explain in details the process and the interpretation of the results, than the actual equations. But, it is again a matter of taste. If you would use this mode, I would suggest to put somewhere a list of parameters/ abbreviations.

I liked the example very much! Good that you put here and even better that you make a comparing with EVM.

*Limitations:
Great part again, especially I liked that you talked about the QCQ/ QCM limitation, which can be crucial in case of a construction project. Good point!

*I miss a conclusion from the end.

*Reference:
Nice reference in quality and quantity as well.

Talk:Integrated Cost and Schedule Control

2015-09-24T09:42:36Z

S150793: /* Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30: */

Anna: I like the topic you have chosen.
I would just like to comment on the fact that describing one method in great details can sometimes be more valuable than mentioning three different ones but without going into as many details. However, if you do have time to describe all 3 in depth this would of course also give a great end result.

=Reviewer 1 (Konspits)=
'''General Overview''': Very good choice of topic as it is relevant to project management. Your article is very engaging and gives a clear idea of the suggested method that combines these two significant factors for the success of a project.

Gramatically, everything is correct. It is easy to follow and the main points are well understood as there is a logical flow in the structure.
Very well written article with appropriate and targeted references.

Illustrations: Need to be aligned with the text. Pay attention when formatting for final hand-in.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

Improvements: I would like to see a conclusion section if you still have some words left. You should also try to figure out if the suggested method can stand from a portfolio management perspective. Just an idea! You could include this aspect in your conclusion.

: ''Totally right, a conclusion section has been added and I have also tried to include the aspect that you mention.''

Other than that, great job!Looking forward to reading your final version! Good luck!

: ''Thanks a lot for your suggestions.''

='''Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30:''' =

The abstract is engaging and provides the reader with desire to go in-depth with the topic. Is this the matter of questions used – I don’t know – it works.
*It is really well structured article with appropriate sectioning and consistent flow between the section
*Article’s language is appropriate for an academic paper, however, you should get rid of all abbreviations. ‘I am’ instead of ‘I’m’ looks more professional and academically correct.

:*''Totally agree, I have changed those abbreviations. Thanks.''

*Almost in every case the placing and interaction of text and tables/illustrations is correct, however, in some cases it still needs to be resolved. In some places (e.g. EVM technique section) text goes in-between two tables – it does not look too elegant.

**''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

*What is the source of the examples? Are those self-made? If not, do you have the copyrights?

**''Yes, they are self-made with invented data, just to exemplify what I wanted to show.''

*The article covers the topic and fits in the methodology description case. To my mind, a section of conclusions and your personal-opinion might be a good thing to add.

**'' You are right, a sections of conclusions it is really a good thing to add. Thank you for the suggestion.''

All in all the article presents the method well and I learned a lot. Pleasure to read. You have wrote more than 3000 words but in a case of consistent article that covers a wide range of methodologies within one topic it seems more than fine. Well described bibliography! Polish everything up and soon you will be done.

**'Thank you very much for your suggestions. I really appreciate them.''

=Reviewer 2 (s141943)=
*In general, I guess you hit a really relevant and important topic. I saw that you accepted Anna´s suggestion which was a good idea in my opinion.

The grammar is good and academic, however I would rather write instead of shouldn´t and can´t the should not and can not versions. It appears around 3 times in the article, so it is a minor issue.

The logical flow is good and really great within the section. It was good to read and the parts are build up on each other. I also liked that you refer to the different section within the article. Also, that you refer to the figure is a great point.
However, I would suggest a bit different overall structure for the article.

The cite and acknowledgement is precise and appropriate I would mention also that I like the links in the text in some cases. In addition, use “…” for the quotes.

*Abstract:
Great start, good explanation. The last 2 phases really good, I liked it. It shows why this topic is relevant and worth to read. Maybe I would emphasize a bit more the importance to monitor the actual state of the project, because it is hard to monitor, but you did later, so it is ok.

*Table of contents:
I write my suggestion: 2.2.1/ 2.3.1/ 2.3.2 I guess there is no need for them

1 Background
2 Application…. (not just one word maybe)
2.1 Schedule control
2.2 Cost control
2.3 Integrated….
2.3.1 EVM Techniques
3. Benefits and advantages
4 Limitations
5 Conclusion
6 References

*Background:
Really good in general, I also liked the quotes and that you refer to the figure. However, I would write the second quote with my own words and just refer to the figure and literature. I guess this 2 big quotes are too close to each other. But it is a matter of taste I would say.

Also the part where you talk about Judgment of experts, analytical techniques, etc is really good and logical. It would be more visible with bold letters… to make it more structured and followable.

*Application…..
Great intro for the section! No other comment.

*Schedule Control:
Really good intro. I like the form and that you keep this one through the other main parts of the article. I really appreciate such a consistency.

For table 1: maybe write some words about the techniques in general, or pick one why it is better than the other, or an example with some of them. Otherwise for me it look like a big (and informative) table is standing alone.

*Cost control:
Again great intro and figure is also illustrative here.

*Integrated Cost and-…..
Maybe here for the bullet points I would write more with my own words than use quotes. Otherwise it is good. I have already indicated to make EVM technique as a subsection. Because in this way your focus is more visible from the first point.

*Table 3 and the calculations:
I am not sure that it is worth to detail the calculation process with table 3 and the equations. If I were you I would rather explain in details the process and the interpretation of the results, than the actual equations. But, it is again a matter of taste. If you would use this mode, I would suggest to put somewhere a list of parameters/ abbreviations.

I liked the example very much! Good that you put here and even better that you make a comparing with EVM.

*Limitations:
Great part again, especially I liked that you talked about the QCQ/ QCM limitation, which can be crucial in case of a construction project. Good point!

*I miss a conclusion from the end.

*Reference:
Nice reference in quality and quantity as well.

Talk:Integrated Cost and Schedule Control

2015-09-24T09:42:12Z

S150793: /* Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30: */

Anna: I like the topic you have chosen.
I would just like to comment on the fact that describing one method in great details can sometimes be more valuable than mentioning three different ones but without going into as many details. However, if you do have time to describe all 3 in depth this would of course also give a great end result.

=Reviewer 1 (Konspits)=
'''General Overview''': Very good choice of topic as it is relevant to project management. Your article is very engaging and gives a clear idea of the suggested method that combines these two significant factors for the success of a project.

Gramatically, everything is correct. It is easy to follow and the main points are well understood as there is a logical flow in the structure.
Very well written article with appropriate and targeted references.

Illustrations: Need to be aligned with the text. Pay attention when formatting for final hand-in.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

Improvements: I would like to see a conclusion section if you still have some words left. You should also try to figure out if the suggested method can stand from a portfolio management perspective. Just an idea! You could include this aspect in your conclusion.

: ''Totally right, a conclusion section has been added and I have also tried to include the aspect that you mention.''

Other than that, great job!Looking forward to reading your final version! Good luck!

: ''Thanks a lot for your suggestions.''

='''Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30:''' =

The abstract is engaging and provides the reader with desire to go in-depth with the topic. Is this the matter of questions used – I don’t know – it works.
*It is really well structured article with appropriate sectioning and consistent flow between the section
*Article’s language is appropriate for an academic paper, however, you should get rid of all abbreviations. ‘I am’ instead of ‘I’m’ looks more professional and academically correct.

**''Totally agree, I have changed those abbreviations. Thanks.''

*Almost in every case the placing and interaction of text and tables/illustrations is correct, however, in some cases it still needs to be resolved. In some places (e.g. EVM technique section) text goes in-between two tables – it does not look too elegant.

**''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

*What is the source of the examples? Are those self-made? If not, do you have the copyrights?

**''Yes, they are self-made with invented data, just to exemplify what I wanted to show.''

*The article covers the topic and fits in the methodology description case. To my mind, a section of conclusions and your personal-opinion might be a good thing to add.

**'' You are right, a sections of conclusions it is really a good thing to add. Thank you for the suggestion.''

All in all the article presents the method well and I learned a lot. Pleasure to read. You have wrote more than 3000 words but in a case of consistent article that covers a wide range of methodologies within one topic it seems more than fine. Well described bibliography! Polish everything up and soon you will be done.

**'Thank you very much for your suggestions. I really appreciate them.''

=Reviewer 2 (s141943)=
*In general, I guess you hit a really relevant and important topic. I saw that you accepted Anna´s suggestion which was a good idea in my opinion.

The grammar is good and academic, however I would rather write instead of shouldn´t and can´t the should not and can not versions. It appears around 3 times in the article, so it is a minor issue.

The logical flow is good and really great within the section. It was good to read and the parts are build up on each other. I also liked that you refer to the different section within the article. Also, that you refer to the figure is a great point.
However, I would suggest a bit different overall structure for the article.

The cite and acknowledgement is precise and appropriate I would mention also that I like the links in the text in some cases. In addition, use “…” for the quotes.

*Abstract:
Great start, good explanation. The last 2 phases really good, I liked it. It shows why this topic is relevant and worth to read. Maybe I would emphasize a bit more the importance to monitor the actual state of the project, because it is hard to monitor, but you did later, so it is ok.

*Table of contents:
I write my suggestion: 2.2.1/ 2.3.1/ 2.3.2 I guess there is no need for them

1 Background
2 Application…. (not just one word maybe)
2.1 Schedule control
2.2 Cost control
2.3 Integrated….
2.3.1 EVM Techniques
3. Benefits and advantages
4 Limitations
5 Conclusion
6 References

*Background:
Really good in general, I also liked the quotes and that you refer to the figure. However, I would write the second quote with my own words and just refer to the figure and literature. I guess this 2 big quotes are too close to each other. But it is a matter of taste I would say.

Also the part where you talk about Judgment of experts, analytical techniques, etc is really good and logical. It would be more visible with bold letters… to make it more structured and followable.

*Application…..
Great intro for the section! No other comment.

*Schedule Control:
Really good intro. I like the form and that you keep this one through the other main parts of the article. I really appreciate such a consistency.

For table 1: maybe write some words about the techniques in general, or pick one why it is better than the other, or an example with some of them. Otherwise for me it look like a big (and informative) table is standing alone.

*Cost control:
Again great intro and figure is also illustrative here.

*Integrated Cost and-…..
Maybe here for the bullet points I would write more with my own words than use quotes. Otherwise it is good. I have already indicated to make EVM technique as a subsection. Because in this way your focus is more visible from the first point.

*Table 3 and the calculations:
I am not sure that it is worth to detail the calculation process with table 3 and the equations. If I were you I would rather explain in details the process and the interpretation of the results, than the actual equations. But, it is again a matter of taste. If you would use this mode, I would suggest to put somewhere a list of parameters/ abbreviations.

I liked the example very much! Good that you put here and even better that you make a comparing with EVM.

*Limitations:
Great part again, especially I liked that you talked about the QCQ/ QCM limitation, which can be crucial in case of a construction project. Good point!

*I miss a conclusion from the end.

*Reference:
Nice reference in quality and quantity as well.

Talk:Integrated Cost and Schedule Control

2015-09-24T09:41:04Z

S150793: /* Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30: */

Anna: I like the topic you have chosen.
I would just like to comment on the fact that describing one method in great details can sometimes be more valuable than mentioning three different ones but without going into as many details. However, if you do have time to describe all 3 in depth this would of course also give a great end result.

=Reviewer 1 (Konspits)=
'''General Overview''': Very good choice of topic as it is relevant to project management. Your article is very engaging and gives a clear idea of the suggested method that combines these two significant factors for the success of a project.

Gramatically, everything is correct. It is easy to follow and the main points are well understood as there is a logical flow in the structure.
Very well written article with appropriate and targeted references.

Illustrations: Need to be aligned with the text. Pay attention when formatting for final hand-in.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

Improvements: I would like to see a conclusion section if you still have some words left. You should also try to figure out if the suggested method can stand from a portfolio management perspective. Just an idea! You could include this aspect in your conclusion.

: ''Totally right, a conclusion section has been added and I have also tried to include the aspect that you mention.''

Other than that, great job!Looking forward to reading your final version! Good luck!

: ''Thanks a lot for your suggestions.''

='''Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30:''' =

The abstract is engaging and provides the reader with desire to go in-depth with the topic. Is this the matter of questions used – I don’t know – it works.
#It is really well structured article with appropriate sectioning and consistent flow between the section
#Article’s language is appropriate for an academic paper, however, you should get rid of all abbreviations. ‘I am’ instead of ‘I’m’ looks more professional and academically correct.

##''Totally agree, I have changed those abbrevations. Thanks.''

#Almost in every case the placing and interaction of text and tables/illustrations is correct, however, in some cases it still needs to be resolved. In some places (e.g. EVM technique section) text goes in-between two tables – it does not look too elegant.

##''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

#What is the source of the examples? Are those self-made? If not, do you have the copyrights?

##''Yes, they are self-made with invented data, just to exemplify what I wanted to show.''

#The article covers the topic and fits in the methodology description case. To my mind, a section of conclusions and your personal-opinion might be a good thing to add.

##'' You are right, a sections of conclusions it is really a good thing to add. Thank you for the suggestion.''

All in all the article presents the method well and I learned a lot. Pleasure to read. You have wrote more than 3000 words but in a case of consistent article that covers a wide range of methodologies within one topic it seems more than fine. Well described bibliography! Polish everything up and soon you will be done.

##'Thank you very much for your suggestions. I really appreciate them.''

=Reviewer 2 (s141943)=
*In general, I guess you hit a really relevant and important topic. I saw that you accepted Anna´s suggestion which was a good idea in my opinion.

The grammar is good and academic, however I would rather write instead of shouldn´t and can´t the should not and can not versions. It appears around 3 times in the article, so it is a minor issue.

The logical flow is good and really great within the section. It was good to read and the parts are build up on each other. I also liked that you refer to the different section within the article. Also, that you refer to the figure is a great point.
However, I would suggest a bit different overall structure for the article.

The cite and acknowledgement is precise and appropriate I would mention also that I like the links in the text in some cases. In addition, use “…” for the quotes.

*Abstract:
Great start, good explanation. The last 2 phases really good, I liked it. It shows why this topic is relevant and worth to read. Maybe I would emphasize a bit more the importance to monitor the actual state of the project, because it is hard to monitor, but you did later, so it is ok.

*Table of contents:
I write my suggestion: 2.2.1/ 2.3.1/ 2.3.2 I guess there is no need for them

1 Background
2 Application…. (not just one word maybe)
2.1 Schedule control
2.2 Cost control
2.3 Integrated….
2.3.1 EVM Techniques
3. Benefits and advantages
4 Limitations
5 Conclusion
6 References

*Background:
Really good in general, I also liked the quotes and that you refer to the figure. However, I would write the second quote with my own words and just refer to the figure and literature. I guess this 2 big quotes are too close to each other. But it is a matter of taste I would say.

Also the part where you talk about Judgment of experts, analytical techniques, etc is really good and logical. It would be more visible with bold letters… to make it more structured and followable.

*Application…..
Great intro for the section! No other comment.

*Schedule Control:
Really good intro. I like the form and that you keep this one through the other main parts of the article. I really appreciate such a consistency.

For table 1: maybe write some words about the techniques in general, or pick one why it is better than the other, or an example with some of them. Otherwise for me it look like a big (and informative) table is standing alone.

*Cost control:
Again great intro and figure is also illustrative here.

*Integrated Cost and-…..
Maybe here for the bullet points I would write more with my own words than use quotes. Otherwise it is good. I have already indicated to make EVM technique as a subsection. Because in this way your focus is more visible from the first point.

*Table 3 and the calculations:
I am not sure that it is worth to detail the calculation process with table 3 and the equations. If I were you I would rather explain in details the process and the interpretation of the results, than the actual equations. But, it is again a matter of taste. If you would use this mode, I would suggest to put somewhere a list of parameters/ abbreviations.

I liked the example very much! Good that you put here and even better that you make a comparing with EVM.

*Limitations:
Great part again, especially I liked that you talked about the QCQ/ QCM limitation, which can be crucial in case of a construction project. Good point!

*I miss a conclusion from the end.

*Reference:
Nice reference in quality and quantity as well.

Talk:Integrated Cost and Schedule Control

2015-09-24T09:39:47Z

S150793: /* Reviewer 1 (Konspits) */

Anna: I like the topic you have chosen.
I would just like to comment on the fact that describing one method in great details can sometimes be more valuable than mentioning three different ones but without going into as many details. However, if you do have time to describe all 3 in depth this would of course also give a great end result.

=Reviewer 1 (Konspits)=
'''General Overview''': Very good choice of topic as it is relevant to project management. Your article is very engaging and gives a clear idea of the suggested method that combines these two significant factors for the success of a project.

Gramatically, everything is correct. It is easy to follow and the main points are well understood as there is a logical flow in the structure.
Very well written article with appropriate and targeted references.

Illustrations: Need to be aligned with the text. Pay attention when formatting for final hand-in.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

Improvements: I would like to see a conclusion section if you still have some words left. You should also try to figure out if the suggested method can stand from a portfolio management perspective. Just an idea! You could include this aspect in your conclusion.

: ''Totally right, a conclusion section has been added and I have also tried to include the aspect that you mention.''

Other than that, great job!Looking forward to reading your final version! Good luck!

: ''Thanks a lot for your suggestions.''

='''Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30:''' =

The abstract is engaging and provides the reader with desire to go in-depth with the topic. Is this the matter of questions used – I don’t know – it works.
#It is really well structured article with appropriate sectioning and consistent flow between the section
#Article’s language is appropriate for an academic paper, however, you should get rid of all abbreviations. ‘I am’ instead of ‘I’m’ looks more professional and academically correct.

: ''Totally agree, I have changed those abbrevations. Thanks.''

#Almost in every case the placing and interaction of text and tables/illustrations is correct, however, in some cases it still needs to be resolved. In some places (e.g. EVM technique section) text goes in-between two tables – it does not look too elegant.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

#What is the source of the examples? Are those self-made? If not, do you have the copyrights?

: ''Yes, they are self-made with invented data, just to exemplify what I wanted to show.''

#The article covers the topic and fits in the methodology description case. To my mind, a section of conclusions and your personal-opinion might be a good thing to add.

: '' You are right, a sections of conclusions it is really a good thing to add. Thank you for the suggestion.''

All in all the article presents the method well and I learned a lot. Pleasure to read. You have wrote more than 3000 words but in a case of consistent article that covers a wide range of methodologies within one topic it seems more than fine. Well described bibliography! Polish everything up and soon you will be done.

: ''Thank you very much for your suggestions. I really appreciate them.''

=Reviewer 2 (s141943)=
*In general, I guess you hit a really relevant and important topic. I saw that you accepted Anna´s suggestion which was a good idea in my opinion.

The grammar is good and academic, however I would rather write instead of shouldn´t and can´t the should not and can not versions. It appears around 3 times in the article, so it is a minor issue.

The logical flow is good and really great within the section. It was good to read and the parts are build up on each other. I also liked that you refer to the different section within the article. Also, that you refer to the figure is a great point.
However, I would suggest a bit different overall structure for the article.

The cite and acknowledgement is precise and appropriate I would mention also that I like the links in the text in some cases. In addition, use “…” for the quotes.

*Abstract:
Great start, good explanation. The last 2 phases really good, I liked it. It shows why this topic is relevant and worth to read. Maybe I would emphasize a bit more the importance to monitor the actual state of the project, because it is hard to monitor, but you did later, so it is ok.

*Table of contents:
I write my suggestion: 2.2.1/ 2.3.1/ 2.3.2 I guess there is no need for them

1 Background
2 Application…. (not just one word maybe)
2.1 Schedule control
2.2 Cost control
2.3 Integrated….
2.3.1 EVM Techniques
3. Benefits and advantages
4 Limitations
5 Conclusion
6 References

*Background:
Really good in general, I also liked the quotes and that you refer to the figure. However, I would write the second quote with my own words and just refer to the figure and literature. I guess this 2 big quotes are too close to each other. But it is a matter of taste I would say.

Also the part where you talk about Judgment of experts, analytical techniques, etc is really good and logical. It would be more visible with bold letters… to make it more structured and followable.

*Application…..
Great intro for the section! No other comment.

*Schedule Control:
Really good intro. I like the form and that you keep this one through the other main parts of the article. I really appreciate such a consistency.

For table 1: maybe write some words about the techniques in general, or pick one why it is better than the other, or an example with some of them. Otherwise for me it look like a big (and informative) table is standing alone.

*Cost control:
Again great intro and figure is also illustrative here.

*Integrated Cost and-…..
Maybe here for the bullet points I would write more with my own words than use quotes. Otherwise it is good. I have already indicated to make EVM technique as a subsection. Because in this way your focus is more visible from the first point.

*Table 3 and the calculations:
I am not sure that it is worth to detail the calculation process with table 3 and the equations. If I were you I would rather explain in details the process and the interpretation of the results, than the actual equations. But, it is again a matter of taste. If you would use this mode, I would suggest to put somewhere a list of parameters/ abbreviations.

I liked the example very much! Good that you put here and even better that you make a comparing with EVM.

*Limitations:
Great part again, especially I liked that you talked about the QCQ/ QCM limitation, which can be crucial in case of a construction project. Good point!

*I miss a conclusion from the end.

*Reference:
Nice reference in quality and quantity as well.

Talk:Integrated Cost and Schedule Control

2015-09-24T09:39:13Z

S150793:

Anna: I like the topic you have chosen.
I would just like to comment on the fact that describing one method in great details can sometimes be more valuable than mentioning three different ones but without going into as many details. However, if you do have time to describe all 3 in depth this would of course also give a great end result.

=Reviewer 1 (Konspits)=
'''General Overview''': Very good choice of topic as it is relevant to project management. Your article is very engaging and gives a clear idea of the suggested method that combines these two significant factors for the success of a project.

Gramatically, everything is correct. It is easy to follow and the main points are well understood as there is a logical flow in the structure.
Very well written article with appropriate and targeted references.

Illustrations: Need to be aligned with the text. Pay attention when formatting for final hand-in.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

Improvements: I would like to see a conclusion section if you still have some words left. You should also try to figure out if the suggested method can stand from a portfolio management perspective. Just an idea! You could include this aspect in your conclusion.

: ''Totally right, a conclusion section has been added and I have also tried to include the aspect that you mention."

Other than that, great job!Looking forward to reading your final version! Good luck!

: ''Thanks a lot for your suggestions.''

='''Adam.pekala (reviewer 3) article accessed 2015-09-22 22:30:''' =

The abstract is engaging and provides the reader with desire to go in-depth with the topic. Is this the matter of questions used – I don’t know – it works.
#It is really well structured article with appropriate sectioning and consistent flow between the section
#Article’s language is appropriate for an academic paper, however, you should get rid of all abbreviations. ‘I am’ instead of ‘I’m’ looks more professional and academically correct.

: ''Totally agree, I have changed those abbrevations. Thanks.''

#Almost in every case the placing and interaction of text and tables/illustrations is correct, however, in some cases it still needs to be resolved. In some places (e.g. EVM technique section) text goes in-between two tables – it does not look too elegant.

: ''The format of the alignments in the example section has been changed. It is true that depending on the web browser's screen resolution, text flow can be between figures. Thanks for the advice because I was not aware.''

#What is the source of the examples? Are those self-made? If not, do you have the copyrights?

: ''Yes, they are self-made with invented data, just to exemplify what I wanted to show.''

#The article covers the topic and fits in the methodology description case. To my mind, a section of conclusions and your personal-opinion might be a good thing to add.

: '' You are right, a sections of conclusions it is really a good thing to add. Thank you for the suggestion.''

All in all the article presents the method well and I learned a lot. Pleasure to read. You have wrote more than 3000 words but in a case of consistent article that covers a wide range of methodologies within one topic it seems more than fine. Well described bibliography! Polish everything up and soon you will be done.

: ''Thank you very much for your suggestions. I really appreciate them.''

=Reviewer 2 (s141943)=
*In general, I guess you hit a really relevant and important topic. I saw that you accepted Anna´s suggestion which was a good idea in my opinion.

The grammar is good and academic, however I would rather write instead of shouldn´t and can´t the should not and can not versions. It appears around 3 times in the article, so it is a minor issue.

The logical flow is good and really great within the section. It was good to read and the parts are build up on each other. I also liked that you refer to the different section within the article. Also, that you refer to the figure is a great point.
However, I would suggest a bit different overall structure for the article.

The cite and acknowledgement is precise and appropriate I would mention also that I like the links in the text in some cases. In addition, use “…” for the quotes.

*Abstract:
Great start, good explanation. The last 2 phases really good, I liked it. It shows why this topic is relevant and worth to read. Maybe I would emphasize a bit more the importance to monitor the actual state of the project, because it is hard to monitor, but you did later, so it is ok.

*Table of contents:
I write my suggestion: 2.2.1/ 2.3.1/ 2.3.2 I guess there is no need for them

1 Background
2 Application…. (not just one word maybe)
2.1 Schedule control
2.2 Cost control
2.3 Integrated….
2.3.1 EVM Techniques
3. Benefits and advantages
4 Limitations
5 Conclusion
6 References

*Background:
Really good in general, I also liked the quotes and that you refer to the figure. However, I would write the second quote with my own words and just refer to the figure and literature. I guess this 2 big quotes are too close to each other. But it is a matter of taste I would say.

Also the part where you talk about Judgment of experts, analytical techniques, etc is really good and logical. It would be more visible with bold letters… to make it more structured and followable.

*Application…..
Great intro for the section! No other comment.

*Schedule Control:
Really good intro. I like the form and that you keep this one through the other main parts of the article. I really appreciate such a consistency.

For table 1: maybe write some words about the techniques in general, or pick one why it is better than the other, or an example with some of them. Otherwise for me it look like a big (and informative) table is standing alone.

*Cost control:
Again great intro and figure is also illustrative here.

*Integrated Cost and-…..
Maybe here for the bullet points I would write more with my own words than use quotes. Otherwise it is good. I have already indicated to make EVM technique as a subsection. Because in this way your focus is more visible from the first point.

*Table 3 and the calculations:
I am not sure that it is worth to detail the calculation process with table 3 and the equations. If I were you I would rather explain in details the process and the interpretation of the results, than the actual equations. But, it is again a matter of taste. If you would use this mode, I would suggest to put somewhere a list of parameters/ abbreviations.

I liked the example very much! Good that you put here and even better that you make a comparing with EVM.

*Limitations:
Great part again, especially I liked that you talked about the QCQ/ QCM limitation, which can be crucial in case of a construction project. Good point!

*I miss a conclusion from the end.

*Reference:
Nice reference in quality and quantity as well.

Integrated Cost and Schedule Control

2015-09-24T09:25:02Z

S150793: /* Example */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks shouldn't be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]] [[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]] [[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]
 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:24:03Z

S150793: /* Example */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks shouldn't be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]]

[[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]]

[[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]

<div style="overflow: hidden">
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control. </div>

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:21:55Z

S150793: /* Example */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks shouldn't be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| center| 600px | thumb| |'''Figure 5:''' Example situation data.]]

[[File:Example2.png| left| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]]

[[File:Example3.png| right| 550px | thumb| |'''Figure 7:''' Example situation results.]]

 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:20:38Z

S150793: /* Example */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks shouldn't be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| left| 600px | thumb| |'''Figure 5:''' Example situation data.]]

[[File:Example2.png| right| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]]

[[File:Example3.png| 550px | thumb| |'''Figure 7:''' Example situation results.]]

 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-24T09:18:32Z

S150793: /* Example */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks shouldn't be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| left| 600px | thumb| |'''Figure 5:''' Example situation data.]]

[[File:Example2.png| right| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]]

[[File:Example3.png| 550px | thumb| |'''Figure 7:''' Example situation results.]]

 
Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Talk:Scheduling techniques in Project Management

2015-09-22T17:34:52Z

S150793:

Mette: Hello, I like your idea and topic. Nice to see that you are already a long way with your article. Also good to see that you have a discussion section in the end of your article where you look at the different between the three scheduling techniques so the article is not only a recitation of scheduling techniques in PM. Maybe you could look at pros and cons in this section.

=Feedback=
==Reviewer 2, DI2009==
*Method form: It is a article about scheduling techniques used within Project management, so I believe you could say that it looks at different tools/methods.

*Structure:
**I think it is a well-structured and almost done article.
**I like the comparison of the three tools, gives a nice overview. I don’t know if this overview maybe would be nice in the beginning of the article, and then the reader could decide which one of the method he/she would like to know more about (maybe link down to the section).
**As well it might be nice with the “Benefits of using scheduling techniques in Project Management” section in the beginning to catch the readers interest. It will convince the reader to use these techniques and read on.

*Figures:
**Nice with many relevant figures that match the content of the text. Might be that you could arrange the ones in Example of PERT/CPM a bit differently to make it look better.
**Figure could maybe have a number,
**Remember to refer to the figures in the text,
**Some figures are unnecessary big, some are very small and hard to read (e.g. K. Adamiechi Chart)
**As well I believe you have copied the figures from some textbooks of websites, remember the reference and make sure you are allowed to use it (no copyright)

*Language: It is well written, however some sentences are quite long, maybe you could look a bit more into this.
** Spelling, a few spelling mistakes found:
**Activies -> activities (PERT “…between the activies are shown by arrows…”)
**Actity -> activity (PERT: Step by step to construct a PERT Diagram, step 2)
**caluclated -> calculate (PERT: Step by step to construct a PERT Diagram, step 3)
**coud -> could (PERT: Step by step to construct a PERT Diagram, step 4)
**softwares -> software in section (Differences between PERT, Gantt and CPM
**(It might be that I have missed some)

*Summary; I think the summary is nice short and gives a good introduction the article

==Reviewer 3 (s150793)==

I find the topic that you have written about very interesting. Here are my suggestions:

* Structure: For me, the structure of the article meets the “methods” structure. I have just seen that part number 2.1 has a different title style than the other subsections.

* Length: The length of the article is a bit longer regarding the suggested one. You could maybe sum up a bit the introduction part and add a last part concerning limitations or drawbacks of the tools.

*Figures and tables: I think that you have chosen really useful images and tables. Remember that you should enumerate them and reference them in the text. The sources where you have found the figures should also be indicated. In my point of view the two first images of the Gantt Chart part could be a bit bigger in order to understand what is written.

*Examples: The animation of the exercise is a great idea to illustrate how to use the tool. However, some brief explanation of the different steps followed in the resolution will also be helpful. I think that illustrating how to draw a Gantt Chart with the same data from the example of PERT/CPM could also be very interesting.

*Writing style: The text is easy to understand but has some grammar and spelling mistakes. I would suggest you to reed it again carefully.

*References: Remember that you should write a brief summary of each source and to reference all the passages of the article to show form where you have taken the information.

Talk:Six Sigma and PMBOK

2015-09-22T15:14:16Z

S150793: Created page with "==Reviewer 2, s150793== * Topic and length: I think that the topic should be more specific and you should explain how the tool is used. The length of the article is too sho..."

==Reviewer 2, s150793==

* Topic and length: I think that the topic should be more specific and you should explain how the tool is used. The length of the article is too short, just around 1000 words.

* Structure: I think that the structure of the article doesn’t really follow the “methods” structure. I would recommend to have a look at how this type of articles should be structured.

*Images and tables: I think that the use of images and tables will help the readers to understand better the article. Remember to indicate the sources of the figures and to reference them in the text.

*Writing style: Try to connect and relate the different ideas that you want to explain.

*References: If you try to use more high quality references such as books and articles, your article will be more accurate. You should also reference all the passages of the text to reflect the sources where the information comes from. Remember to write a brief summary of each source.

Talk:Cross cultural teamwork

2015-09-22T15:13:06Z

S150793:

Anna: As a feedback to your topic idea, I would suggest that you focus on a specific tool to deal with the issues related to cross cultural teamwork. This will help you narrow the scope and create a more tool oriented and specific article.
Remember that your article has fall into one of the two categories: method or case study.

=Reviewer 1 (s150793)=

I really like the topic that you have chosen because I find it very interesting. Here are my suggestions:

*Structure: For me, the structure of the article doesn’t really follow the “methods” structure. I would suggest to start with an Introduction (1) of the theme, as you have done, but in my point of view it should also include points 4 and 5, as they develop “Cross cultural teamwork” background. The next part could be the Application (2) of techniques to reduce “Cross cultural teamwork” problems. This could be analysed from the three perspectives that you have selected: Project Human Resource Management (2.1), Project Communication Management (2.2) and Project Stakeholder Management (2.3). The last part of the article (3) before the References (4), could talk about the limitations and drawbacks that “Cross cultural teamwork” have in Global Project Management.

*Length: The introduction that you have made is interesting but I would maybe reduce a bit the first points of your article and pay more attention in the application part. You already have around 2800 words and as you have indicated, you want to develop some points more. I would try to focus on the main ideas so that the article doesn’t end very long.

*Images and tables: I think that the use of other images and some tables will help the readers to understand the main points. For example, your 4th point (Challenges faced in cross-cultural teamwork) could be more visual if you use a table.

*Writing style: The text is easy to understand but maybe some sentences are a bit long.

*References: If you try to use more high quality references such as books and articles, your article will be more accurate. You should also reference all the passages of the text to reflect the sources where the information comes from. Remember also to reference all the figures. You should also write a brief summary of each source.

Talk:Project Integration Management

2015-09-22T15:12:09Z

S150793: /* Feedback */

Anna: I think you need to be a bit more specific in scoping your article in regards to which method/tool you want to go in depth with.

=Feedback=
==Reviewer 1, DI2009==
*Topic; It seems like an interesting topic (method description). However I had a hard time to figure out, whether or not the title matches the content.
*Introduction; Due to the missing link between the title and the topic, it would have been nice to get a description of the article. Maybe it could start with: “This article describes how Six Sigma can be used in Project Management…”.
*Structure; A structure which gives the reader an overview of the points and states a small conclusion, would help the reader, both catch the readers interest and make it easy for the user to know what the article is about.
*Section introduction; a short introduction to each section would help the reader know what to expect.
*Text; I believe that the article is not finished and still some more elaboration is missing.
*Figures and illustrations; It would be nice with some figures or illustrations to catch the readers interest and help the reader.
*Titles; the titles could be more descriptive e.g. “Overview of the article” and “Idea with using Six Sigma” etc. This will also help the reader in what to expect.
*Annotated Biography; remember that the references should have a short description
*Referencing; I think you should find more academic articles at least if it is possible do not refer to Wikipedia.

==Reviewer 2, s150793==

* Topic and length: I think that the topic should be more specific and you should explain how the tool is used. The length of the article is too short, just around 1000 words.

* Structure: I think that the structure of the article doesn’t really follow the “methods” structure. I would recommend to have a look at how this type of articles should be structured.

*Images and tables: I think that the use of images and tables will help the readers to understand better the article. Remember to indicate the sources of the figures and to reference them in the text.

*Writing style: Try to connect and relate the different ideas that you want to explain.

*References: If you try to use more high quality references such as books and articles, your article will be more accurate. You should also reference all the passages of the text to reflect the sources where the information comes from. Remember to write a brief summary of each source.

Talk:Cross cultural teamwork

2015-09-22T14:54:58Z

S150793:

Anna: As a feedback to your topic idea, I would suggest that you focus on a specific tool to deal with the issues related to cross cultural teamwork. This will help you narrow the scope and create a more tool oriented and specific article.
Remember that your article has fall into one of the two categories: method or case study.

Reviewer 1 (s150793):

I really like the topic that you have chosen because I find it very interesting. Here are my suggestions:

*Structure: For me, the structure of the article doesn’t really follow the “methods” structure. I would suggest to start with an Introduction (1) of the theme, as you have done, but in my point of view it should also include points 4 and 5, as they develop “Cross cultural teamwork” background. The next part could be the Application (2) of techniques to reduce “Cross cultural teamwork” problems. This could be analysed from the three perspectives that you have selected: Project Human Resource Management (2.1), Project Communication Management (2.2) and Project Stakeholder Management (2.3). The last part of the article (3) before the References (4), could talk about the limitations and drawbacks that “Cross cultural teamwork” have in Global Project Management.

*Length: The introduction that you have made is interesting but I would maybe reduce a bit the first points of your article and pay more attention in the application part. You already have around 2800 words and as you have indicated, you want to develop some points more. I would try to focus on the main ideas so that the article doesn’t end very long.

*Images and tables: I think that the use of other images and some tables will help the readers to understand the main points. For example, your 4th point (Challenges faced in cross-cultural teamwork) could be more visual if you use a table.

*Writing style: The text is easy to understand but maybe some sentences are a bit long.

*References: If you try to use more high quality references such as books and articles, your article will be more accurate. You should also reference all the passages of the text to reflect the sources where the information comes from. Remember also to reference all the figures. You should also write a brief summary of each source.

Integrated Cost and Schedule Control

2015-09-21T17:33:07Z

S150793: /* Drawbacks and Limitations */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks shouldn't be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| left| 600px | thumb| |'''Figure 5:''' Example situation data.]]

[[File:Example2.png| right| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]]

[[File:Example3.png| 550px | thumb| |'''Figure 7:''' Example situation results.]]

Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015]. ''This article shortly describes some Drawbacks or Limitations, Benefits and Applications of EVM.''</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-21T17:30:51Z

S150793: /* When is it applicable? */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks shouldn't be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management'', PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity.'' </ref>

===Example===

[[File:Example1.png| left| 600px | thumb| |'''Figure 5:''' Example situation data.]]

[[File:Example2.png| right| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]]

[[File:Example3.png| 550px | thumb| |'''Figure 7:''' Example situation results.]]

Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-21T17:30:02Z

S150793: /* When is it applicable? */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks shouldn't be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management", PMI, Second Edition. ''This book describes earned value project management in its most fundamental form, for application to all projects, of any size or complexity. </ref>

===Example===

[[File:Example1.png| left| 600px | thumb| |'''Figure 5:''' Example situation data.]]

[[File:Example2.png| right| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]]

[[File:Example3.png| 550px | thumb| |'''Figure 7:''' Example situation results.]]

Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-21T17:24:47Z

S150793: /* Integrated Cost and Schedule Control (EVM technique) */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks shouldn't be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015]. ''This page explains the basic parameters, indicators and indexes of the EVM and how are calculated.''</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management", PMI, Second Edition.</ref>

===Example===

[[File:Example1.png| left| 600px | thumb| |'''Figure 5:''' Example situation data.]]

[[File:Example2.png| right| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]]

[[File:Example3.png| 550px | thumb| |'''Figure 7:''' Example situation results.]]

Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>

Integrated Cost and Schedule Control

2015-09-21T17:22:25Z

S150793: /* Integrated Cost and Schedule Control (EVM technique) */

It is generally known that without a good planning it is rather difficult to implement a project successfully. However, appropriate planning does not guarantee a successful execution of the project because the future is highly unpredictable and uncertain. Therefore, it is really important to control how the different tasks are progressing. In order to get an overview of the current situation of the project, we should compare the actual state with the planned program in terms of Scope, Schedule and Costs.

When it comes to measuring project performance, the planned schedule can be compared to the accomplished one ''(Schedule Control)''. But at the same time, the budgeted cost and the actual cost can also be balanced ''(Cost Control)''. Nevertheless, if these aspects are analysed separately, one can initially think that if a project meets the objectives of cost, it is on plan, but the truth could be that it is in reality delayed. In cases like the previous example, how do we actually know the overall situation of the project? How can delays be compared with monetary data? A very useful method to achieve all this goals without subjective interpretations of the reality is the ''Earned Value Management (EVM)'' technique, which will be one of the main topics developed in the present article. Moreover, with this method you can not only evaluate the performance of the project at any time, but also analyze future trends to estimate the cost and time of completion of the project.

=Background=

[[File:Project Management Process Groups.png‎|500px|thumb|right|'''Figure 1:''' Project Management Process Groups.<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition.
''This is the preeminent global standard for project management. It provides project managers with the fundamental practices needed to achieve organizational results and excellence in the practice of project management''. </ref>]]

According to PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The Monitoring and Controlling Process Group consists of those processes required to track, review, and orchestrate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. The key benefit of this Process Group is that project performance is measured and analysed at regular intervals, appropriate events, or exception conditions to identify variances from the project management plan.''
</blockquote>

Therefore, the control of schedule and cost should be part of the mentioned Monitoring and Controlling Process Group. Furthermore, controlling the performance of the different tasks shouldn't be understood as an isolated activity, but has to be present during all the lifecycle of the project. This fact is clearly reflected in the PMI's PMBOK® Guide<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>:

<blockquote>
''The integrative nature of project management requires the Monitoring and Controlling Process Group to interact with the other Process Groups, as shown in Figure 1. Monitoring and Controlling processes occur at the same time as processes contained within other Process Groups. Thus, the Monitoring and Controlling Process is pictured as a “background” Process Group for the other four Process Groups shown in Figure 1.''
</blockquote>

Once this global perspective of when to control a project is comprehended, one can move on to identify the different tools and techniques that can be used regarding the control of schedule and cost. First of all, the ''Judgment of Experts'' is a really important method regarding the interpretation of the data coming from the observation of how the project is developing. The main objective of this method is to determine which are the actions that the project manager, together with his team, decides to implement to ensure that the actual performance meets the planned requirements. Secondly, the use of ''Analytical Techniques'' can provide an overview of how the project is going to develop and help to prognosticate the way things are going to turn out. Examples of these tools are [https://en.wikipedia.org/wiki/Root_cause_analysis Root cause analysis (RCA)], [https://en.wikipedia.org/wiki/Forecasting Forecasting methods],
[https://en.wikipedia.org/wiki/Failure_mode_and_effects_analysis Failure mode and effect analysis (FMEA)], [[Fault tree analysis]], [https://en.wikipedia.org/wiki/Variance_(accounting) Variance analysis] and the one developed below in this article, the [[Earned Value Management]] technique. Thirdly, by using the ''Project Management Information System'' you can access performance indicators, records and financial data that will definitely help in the process of monitoring and controlling project work process. Finally, the use of ''Meetings'' including project team members and stakeholders are also very useful. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>

Over the years, all these different techniques have been used to control cost and schedule, but usually such supervisions have been done separately. However, the best option concerning the objective of obtaining an overall impression about how the project is progressing is to integrate the control of both aspects. Therefore, even when the two first methods (Schedule Control and Cost Control) are also interesting and will be shortly described, the main method developed in this article is the EVM. This tool was developed by the US Department of Defense in 1967 and later used successfully for monitoring DOE projects, in particular the US LHC accelerator project. <ref name=''EVM">Ferguson, J. and Kissler, K. (2002). ''Earned Value Management''. [online] CERN Document Server. ''This paper explains how CERN has implemented the EVM in their projects and gives a short introduction and description of the method''</ref>

===Benefits===

The main rewards that can be obtained by controlling the cost and schedule of the different tasks of a project and that describe the purpose of this tool, are stated below<ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3. ''This paper outlines a recommended process for establishing and maintaining cost and schedule control of a project through the use of an earned value based performance measurement system.''</ref>:

* Achieving better management visibility.
* Developing disciplined planning.
* Planning and meeting the expectations of realistic schedules.
* Developing achievable objectives.
* And, finally, the project ending on schedule and within budget.

=Application=

Each project has its own characteristics and specifications. Therefore, even though some big companies have their own universal control systems, which they apply to all their projects, each one should be analysed and controlled in a different way. Complex, large and unusual projects require much more attention than those which are small and simple. This is because in those cases risk and loss to the company are lower than in the previous ones. Additionally, few controls will end in lack of knowledge of the project status, whereas too many controls are really costly and can even prejudice the course of the project. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>

Besides all those cases when the application of the current technique is used to achieve the benefits mentioned before, it is also a great tool concerning the “Learning by Doing” philosophy. By controlling the schedule and cost of a project, you can analyse which factors have gone wrong, the reasons of these problems and thereby, improve the planning and performance of future projects.

==Schedule Control==

Schedule Control is understood as ''the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan'' <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. Moreover, the main reason to use this type of control is to minimize risk by recognizing deviations from the planned schedule and taking corrective and preventive actions.

In order to perform the Schedule Control, the next steps should be followed <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Development of schedule''' using management tools such as the [[Work Breakdown Structure (WBS)]], Scope Baseline and the Work Packages, which give information of the tasks that need to be completed in terms of resources needed, time to complete it, budget, required inputs from other tasks, sequence of activities, etc.
# '''Communication''' of the schedule using, for example, a Gant Chart.
# '''Evaluation and information''' of how the project is being accomplished. The feedback can come in different forms: verbal communications, written daily reports from the field, labor‐tracking reports, material deliveries, milestones achieved and upcoming activities. <ref name="Pico1"> Del Pico, W. J. (2013) ''The Basics, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch1. ''This chapter provides an overview of project management theory and where project control fits into the discipline. It does not offer detailed instruction in the profession of day‐to‐day project management, but will review the theory of project management and the basic concepts common to the construction industry.''</ref>
# '''Comparison''' of the actual project performance against the project management planned schedule. The monitoring and comparing process reveals the activities that are ahead of schedule, on schedule, and, most importantly, behind schedule.
# '''Identification of problems''' comparing the planned schedule to the executed one.
# '''Development of procedures''' for correcting such errors and '''schedule redirection'''.

There are some really useful tools and techniques in order to develop the Schedule Control according to the steps mentioned before. Some of them are mentioned in Table 1.

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 1:''' Schedule Control tools and techniques.
! Tool or technique
! Use
|-
|Trend analysis
|''Examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of completion dates. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[The Critical Path Method (CPM)]]
|''Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
|[[ Critical Chain Project Management]]
|''Comparing the amount of buffer remaining to the amount of buffer needed to protect the delivery date can help determine schedule status. The difference between the buffer needed and the buffer remaining can determine whether corrective action is appropriate. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Variance Analysis
|''Comparing planned activity start or finish dates against actual start or finish dates to identify variances between the schedule baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventative actions needed. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Project Management Software
|''Project management software for scheduling provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Resource Optimization Techniques
|''Involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Modeling Techniques
|''Are used to review various scenarios guided by risk monitoring to bring the schedule model into alignment with the project management plan and approved baseline. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Leads and Lags
|''Adjusting leads and lags is applied during network analysis to find ways to bring project activities that are behind into alignment with the plan. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Schedule Compression
|''Are used to find ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing schedule for the remaining work. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|-
| Scheduling Tool
|''Schedule data is updated and compiled into the schedule model to reflect actual progress of the project and remaining work to be completed. The scheduling tool and the supporting schedule data are used in conjunction with manual methods or other project management software to perform schedule network analysis to generate an updated project schedule. <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>
|}

===When is it applicable?===

Schedule Control is most applicable when the project has to meet with a delivery date and this actually characterizes the majority of the projects. Waiting until the last moment to realise that your project won’t be delivered on time is not only unacceptable, but also offers little time to react and recover <ref name="Pico4"> Del Pico, W. J. (2013) ''The Schedule, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch4. ''This chapter reviews scheduling in general and the Critical Path Method (CPM) of scheduling in particular. It is not meant to be a detailed explanation of CPM, but merely a refresher, focusing on how the schedule is used in project control.''</ref>. However, completing a project on schedule is important not only in terms of time but also economically. Reducing the duration of a project can impact the overall costs in terms of less salary payments, interests on loans or preventing loss of profit. For example, if a project consists on developing a new toy before Christmas and it finishes in February, all the profits of the Christmas campaign will be lost.

==Cost Control==
[[File:Cost control (Baseline).png| 320px | thumb| |'''Figure 2:''' Cost Control comparison.]]

Cost Control is known as ''the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline''<ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref>. This technique also helps to understand how the project is progressing and to minimize risks.

A Cost Control system should follow the next steps <ref name="PMI"> PMI. (2013). "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)", Fifth Edition </ref><ref name="barron"> Barron. (1994). “Integrated cost and schedule control”, 3/1–3/3.</ref>:

# '''Distribution of the budget''' through the different tasks of the project and creation of a '''cost baseline''', which will be the planned budget accumulated over time. The data can be based on historical results or theoretical cost performance. The estimated budget it is also deconstructed into a ''Cost Breakdown Structure (CBS)'' to determine the budget for entire categories of work as well as detailed tasks.
# '''Monitoring''' the ongoing project activities.
# '''Comparison''' of the planned and actual performance (Figure 2).
# '''Calculation of the variances''' and '''investigation''' of the reasons of those which are unfavorable.
# '''Analysis and implementation''' of corrective measures.

===When is it applicable?===

First of all, it could be said that Cost Control is applicable in all projects due to its importance in reducing risks and overcosts, specially in those which have a fixed price. Performing a cost control is really useful in the both opposite situations that can occur: negative trends, where actual costs are higher than the planned ones; and positive trends, which indicates that the work is progressing at less cost than it was expected. In the first situation, corrective measures implemented in short periods of time can reduce or end the negative case. In the second situation, the project manager can decide if it is possible to move resources to another task in order to improve its performance.<ref name="Pico5"> Del Pico, W. J. (2013) ''The Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch5. ''This chapter reviews the estimating process and its contribution to project control.''</ref>

Secondly, Cost Control is also very important in those projects where the Quality Control is essential. This is because in those type of projects, the client usually verifies that the performance meets with the specifications before authorizing payments. Therefore, Cost Control will be strongly influenced by the delivery quality.

Finally, the knowledge gained from this control also allows to make better estimations for future projects.

==Integrated Cost and Schedule Control (EVM technique)==

Once both Schedule and Cost Control have been shortly described, it is time to explain the combination of both, which is what actually allows the project manager the range of control needed to manage the work. <ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6. ''This chapter studies the integration of the schedule and the budget for the full impact of project control. It is the combination of both schedule and budget that allows the project manager the range of control needed to manage the work.''</ref> Before the method is explained, it is necessary to understand the meaning of the next terms.

*'''Performance Measurement Baseline''': ''Time and cost parameters that the project team sets as the metrics to measure performance. The Performance Measurement Baseline (PMB) is the way the project would perform if it followed the planned schedule and planned budget exactly. The monitoring process begins only after the PMB has been established and agreed upon by the stakeholders.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2. ''The concept of project control is here introduced as an essential aspect of the project management process.''</ref>
*'''Project Performance Measurement''': ''The gathering of information that will be used during the analysis portion of the control process, … ,includes data on the cost of materials, labor, and equipment for work that has been performed. It includes the individual productivities for the crew that performed the work and the duration of the task. This aspect of project control provides an integrated snapshot of both time and cost as of a specific date called the reporting date''. <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>
*'''Variations''': ''Deviations from the planned performance.'' <ref name="Pico2"> Del Pico, W. J. (2013) ''Introduction to Project Control, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch2.</ref>

But just comparing the Project Performance Measurement with the Performance Measurement Baseline can’t tell you whether you’re on, under, or over budget. And here is where EVM comes in, which is the tool that is going to be explained regarding Integrated Cost and Schedule Control.

The basic parameters to be evaluated and compared in this method are the ones described in Table 2 and illustrated in Figure 3.

[[File:EVM parameters.png| 400px | thumb| |'''Figure 3:''' EVM parameters.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 2:''' Basic Parameters of EVM.
|-
!Planned Value (PV)
|''The approved budget for the work scheduled to be completed by a specified date; also referred to as the Budgeted Cost of Work Scheduled (BCWS). The total PV of a task is equal to the task’s Budget At Completion (BAC) — the total amount budgeted for the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Earned Value (EV)
|''The approved budget for the work actually completed by the specified date; also referred to as the Budgeted Cost of Work Performed (BCWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|-
!Actual Cost (AC)
|''The costs actually incurred for the work completed by the specified date; also referred to as the Actual Cost of Work Performed (ACWP).<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|}

Once the data concerning this three parameters has been collected, the project’s schedule and cost performance can be measured by using the following indicators and indexes (Table 3).

[[File:EVM indicators.png| 400px | thumb| |'''Figure 4:''' EVM indicators.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>]]

{| class="wikitable"
|+ style="caption-side:bottom; "|'''Table 3:''' EVM Indicators and Indexes.
|-
!Schedule Variance (SV)
|''The difference between the amounts budgeted for the work you actually did and for the work you planned to do. The SV shows whether and by how much your work is ahead of or behind your approved schedule.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|width="225"|<math>
\begin{align}
SV = EV - PV
\end{align}
</math>

<math>\begin{align} {\color{green}SV > 0 } \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SV < 0} \end{align} </math>
 The project is delayed
|-
!Cost Variance (CV)
|''The difference between the amount budgeted and the amount actually spent for the work performed. The CV shows whether and by how much you’re under or over your approved budget.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies''. [online] Dummies.com. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CV = EV - AC
\end{align}
</math>

<math>\begin{align} {\color{green}CV > 0} \end{align} </math>
 Costs are below plan

<math> \begin{align} {\color{red}CV < 0} \end{align} </math>
 Costs are over plan
|-
!Schedule Performance Index (SPI)
|''The ratio of the approved budget for the work performed to the approved budget for the work planned. The SPI reflects the relative amount the project is ahead of or behind schedule, sometimes referred to as the project’s schedule efficiency. You can use the SPI to date to project the schedule performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
SPI= EV / PV
\end{align}
</math>

<math>\begin{align} {\color{green}SPI > 1} \end{align} </math>
 The project is ahead

<math> \begin{align} {\color{red}SPI < 1} \end{align} </math>
 The project is delayed
|-
!Cost Performance Index (CPI)
|''The ratio of the approved budget for work performed to what you actually spent for the work. The CPI reflects the relative value of work done compared to the amount paid for it, sometimes referred to as the project’s cost efficiency. You can use the CPI to date to project the cost performance for the remainder of the task.<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>
|<math>
\begin{align}
CPI = EV / AC
\end{align}
</math>

<math>\begin{align} {\color{green}CPI > 1} \end{align} </math>
 Costs of completing the work are below plan

<math> \begin{align} {\color{red}CPI < 1} \end{align} </math>
 Costs of completing the work are over plan
|}

To graphically see these indicators and to know how the project is in terms of advance or delay, Figure 4 is really useful. To measure if the project is behind schedule or not, you must draw an horizontal line from the intersection of the EV and assessment date to the PV line, as it is showed in the figure. At the end of the project, SPI will always be 1 since when all the work is completed, PV and EV are equal.

The project management or the control team have to pay special attention at the CPI index because once is below 1 (the project is over cost), it is really difficult to recover.

Finally, to update what the expected total costs will be at the end of the project there are two more indicators and one index:

*'''Estimate at completion (EAC):''' ''Your estimate today of the total cost of the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: Assuming that the cost performance from that moment will be as it was originally budgeted:

:: <math> \begin{align} EAC &= BAC - CV \end{align} </math>

:: Assuming that the cost performance from that moment will be the same as for the work done to that date:

:: <math> \begin{align} EAC = AC + {(BAC-EV)\over r} \end{align} </math>

::: <math> \begin{align} r=CPI \end{align} </math> (being optimistic)
::: <math> \begin{align} r=CPI*SPI \end{align} </math> (being pessimistic)

*'''Estimate to complete (ETC):''' ''Your estimate of the amount of funds required to complete all work still remaining to be done on the task.''<ref name="dummies">Managers, E. (2015). ''Earned Value Management Terms and Formulas for Project Managers - For Dummies. [online] Dummies.com''. Available at: http://www.dummies.com/how-to/content/earned-value-management-terms-and-formulas-for-pro.html [Accessed 20 Sep. 2015].</ref>

:: <math>
\begin{align}
ETC = BAC - AC
\end{align}
</math>

*'''To-complete performance index (TCPI)''': Provides a projection of the anticipated performance or cost efficiency required to achieve either the BAC or the EAC.

:: <math>
\begin{align}
TCPI_{BAC} = { BAC - EV \over BAC - AC }
\end{align}
</math> (For the TCPI based on BAC)

:: <math>
\begin{align}
TCPI_{EAC} = { BAC - EV \over EAC - AC }
\end{align}
</math> (For the TCPI based on EAC)

===When is it applicable?===

Combining costs with schedule is necessary to have a whole overview of the current status of the project. But this is not the only application. Moreover, the project manager can use the integrated information to predict future performance in terms of schedule as well as for cash flow management.<ref name="Pico6"> Del Pico, W. J. (2013) ''Integrating the Schedule and the Budget, in Project Control: Integrating Cost and Schedule in Construction'', John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118802717.ch6.</ref> The results obtained with 20 % of the project carried out show trends that are usually held until the end. In that moment, the additional cost and the percentage of overrun will be less than the one obtained at the end of the project. Moreover, the final cost can also be predicted with only 10% of deviation. This is why a great application of this method is to determine when the 20% of the work is done, if the project is likely to end successfully in terms of schedule and cost, or not.<ref name="fleming">Fleming, Quentin W. & Koppelman, Joel M. (2000) ''Earned Value Project Management", PMI, Second Edition.</ref>

===Example===

[[File:Example1.png| left| 600px | thumb| |'''Figure 5:''' Example situation data.]]

[[File:Example2.png| right| 550px | thumb| |'''Figure 6:''' Example situation date of analysis data.]]

[[File:Example3.png| 550px | thumb| |'''Figure 7:''' Example situation results.]]

Figure 5 presents an example situation in which a project with only two tasks, A and B, is described in terms of cost and schedule. The objectives of this example are to illustrate how the EVM basic parameters are calculated and to show that by just comparing planned and performance data, one can reach wrong conclusions. With a quick view over the diagram in Figure 5 and the data collected at the day of analysis (Figure 6), the previous thoughts can be that task A has been delayed and over cost, and task B is also delayed but below cost. However, if we analyse the EVM parameters (Figure 7) we can see that due to the delays in the project, task B is actually over cost, what really affects the overall costs of the project. Therefore, the previous conclusion was incorrect. This exemplifies how useful the EVM technique can be and the importance of performing an Integrated Cost and Schedule Control.

=Drawbacks and Limitations=

It is very important that the data concerning how cost and schedule are developing is as precise and consistent with reality as possible. On the one hand, regarding the control of the progress of a project, it is very important that the capture of the state of a task is part of the work that has to be developed in each of the Work Packages. In other words, the workers should understand that the process control is one of their obligations and that they should provide feedback of the deviations that they detect as quick as possible. On the other hand, the control should be done over how the work is going on and not over how the employees are working. With this two indications concerning the human resources, the results of the control would be more objective and reliable. If the previous is not happening, the whole control process will be based on inaccurate data.

Another important limitation of the Integrated Cost and Schedule Control is that it doesn't include Quality Control processes. Therefore, even when the project ends on time and within budget, the result can be poor. In order to ensure the project management success, the three attributes of the [https://en.wikipedia.org/wiki/Project_management_triangle Project Management Triangle] must be fulfilled. Consequently, in addition to Integrated Cost and Schedule Control, Quality Control has to be done.

Moreover, Integrated Cost and Schedule Control and specifically EVM, must not be used alone. This is because even when it provides information on cost and schedule performance, they don't reveal why a project might be experiencing schedule or cost variances. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

Other drawbacks of employing this technique is the cost of implementation, training, and software. This costs maybe prevent small organization or those who don't have a solid project management system from using this types of control. <ref name="limitations">Neagu, C., (2014) ''Earned Value Management—An “Overhead” View (PART 2: EVM Drawbacks and Benefits)''. [online] rationalplan.com. Available at: http://www.rationalplan.com/projectmanagementblog/earned-value-management-an-overhead-view-part-2-evm-drawbacks-and-benefits/ [Accessed 20 Sep. 2015].</ref>

=References=
<references/>