Level: Intermediate
TCM Section(s)
2.1. Basis of Total Cost Management Processes
1.4. Key Introductory Concepts for Total Cost Management
Venue: 2024 AACE International Conference & Expo
Abstract: The key measure of a metric’s usefulness is its ability to accurately predict what will occur in a project. In particular, the ability of a project to be able to accurately predict the total costs associated with the work is essential, allowing the team to take corrective action when necessary. While earned value management (EVM) is a recommended practice by numerous international organizations, it is important to confirm that metrics like the cost performance index (CPI) have predictive power to be able to accurately forecast a project’s at completion costs.
Using Ontario Power Generation’s (OPG) project historical data warehouse, it is possible to review historical trends in project performance at OPG to assess different metrics and their usefulness in predicting the project’s at completion costs. This paper will summarize some of the analyses performed, comparing the predictive value of the CPI against the estimate at completion (EAC) forecast by project teams.
TCM Section(s)
2.1. Basis of Total Cost Management Processes
1.4. Key Introductory Concepts for Total Cost Management
Venue: 2024 AACE International Conference & Expo
Abstract: The key measure of a metric’s usefulness is its ability to accurately predict what will occur in a project. In particular, the ability of a project to be able to accurately predict the total costs associated with the work is essential, allowing the team to take corrective action when necessary. While earned value management (EVM) is a recommended practice by numerous international organizations, it is important to confirm that metrics like the cost performance index (CPI) have predictive power to be able to accurately forecast a project’s at completion costs.
Using Ontario Power Generation’s (OPG) project historical data warehouse, it is possible to review historical trends in project performance at OPG to assess different metrics and their usefulness in predicting the project’s at completion costs. This paper will summarize some of the analyses performed, comparing the predictive value of the CPI against the estimate at completion (EAC) forecast by project teams.