Updating mean and variance estimates an improved method
Without keeping an eye on the actual costs while the project is being implemented, the project will most likely never be delivered on-budget.
There are several techniques as stated in the PMBOK used to monitor and control the cost of a project, each of which is discussed below: to monitor your project in terms of schedule and cost.
This will also enable you to investigate the cause of delay and the corrective action, such as Crashing, required to get the project back on track.
In addition, to the schedule delay you can use EVM Forecasting formulae to determine the actual cost of the project on completion and take measures to rectify any anomaly before it is too late.
EVM provides formulae to forecast the future performance of a project.
The forecast is based on the current actual performance.
Preventative and corrective actions are determined based on the variance analysis.
Performance reviews in projects are required to check the health of a project.
However, the results of both of these simple algorithms ("naïve" and "two-pass") can depend inordinately on the ordering of the data and can give poor results for very large data sets due to repeated roundoff error in the accumulation of the sums.Having accurate project estimates and a robust project budget is necessary to deliver within the project budget.Both Estimating Costs and Determining Budget are project planning processes.As a project manager, having the ability to tell whether your project will be delivered on-time and on-budget is critical. Suppose you have completed 25 percent of your project. However, after completing 50 percent of the project, you realize your project is delayed.By using forecasting formulae you can determine the degree of delay.