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Budgeted Cost of Work Performed (BCWP), or "Earned Value" (EV), in project management is the budgeted cost of work that has actually been performed in carrying out a scheduled task during a specific time period[1]. The term is connected with Earned value management and here it is different from:

  • Budgeted Cost of Work Scheduled (BCWS) : the approved budget that has been allocated to complete a scheduled task during a specific time period.
  • Actual Cost of Work Performed (ACWP) : the actual cost that has been spent, rather than the budgeted cost.

As example of the difference assume that a schedule contains:

  • a task "Test hardware" that is budgeted to cost $1000 to perform, and
  • is expected to begin at the start of January 1 and
  • complete at the end of January 10.

At the end of January 5, the work is scheduled to be 50% complete (5 days of the scheduled 10 days). So, at the end of January 5,

  • the BCWS is $1000 (the budgeted cost) times 50% (the scheduled completion percentage), or $500.

Suppose that by the end of January 5, the work is actually only 30% complete. In this case,

  • the BCWP would be $1000 (budgeted cost) times 30% (the actual completion percentage), or $300.

Also, suppose that to reach the 30% complete level at the end of January 5, $250 was actually spent.

  • Then, the ACWP would be $250.

References

  1. ^ Project Management Institute (1998) A Guide to the Project Management Body of Knowledge - Third Edition 2004. ISBN 1-930699-45-X

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