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CHAPTER 14
14-2 Early starts and late starts create havoc for BCWS because a percentage of the
allocated budget may already show up as spent when, in fact, the work has not
yet begun.
14-3 Line managers will “pad” their estimates in order to protect themselves.
14-4 The management reserve should be used on high-risk activities, and only
when needed. Otherwise, there may not be any use for the management
reserve.
14-6
Cumulative Cost
(in thousands)
Variance $
Week
BCWS
BCWP
ACWP
Schedule
Cost
EAC %
1
50
50
25
0
25
50
2
70
60
40
(10)
20
66.6
3
90
80
67
(10)
13
83.7
4
120
105
90
(15)
15
85.7
5
130
120
115
(10)
5
95.8
6
140
135
130
(5)
5
96.3
7
165
150
155
(15)
(5)
100.3
8
200
175
190
(25)
(15)
108.6
9
250
220
230
(30)
(10)
104.5
10
270
260
270
(10)
(10)
103.8
11
300
295
305
(5)
(10)
103.4
12
350
340
340
(10)
0
100.0
13
380
360
370
(20)
(10)
102.8
14
420
395
400
(25)
(5)
101.3
15
460
460
450
0
10
97.8
Project Management Instructor’s Manual 20 Chapter 14
14-8 (a) 1840 hours per year or 153.33 hrs/month
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