Cost Control Report

Cost control report is essential for monitoring and managing project expenses, ensuring that the project stays within its budget and on schedule. It provides key performance metrics, such as SPI and CPI, which help identify cost and schedule variances early, allowing for timely corrective actions. This oversight aids in efficient resource allocation, minimizes financial risks, and enhances overall project success.

Designing a Cost Control Report

• Establish a clear format with sections for project overview, progress, cost performance, and variances

• Project Overview: Include project name, manager, start date, end date, and budget
• Progress Summary: Detail the current phase, milestones achieved, and upcoming tasks
• Financial Summary: Present budgeted vs. actual costs and remaining budget

• Earned Value (EV): Measure of work performed
• Planned Value (PV): Estimated value of work planned to be done
• Actual Cost (AC): Real cost incurred for the work performed

Schedule Performance Index (SPI)

• Formula: SPI = EV / PV
• Interpretation: SPI > 1 indicates ahead of schedule; SPI < 1 indicates behind schedule

Cost Performance Index (CPI)

• Formula: CPI = EV / AC
• Interpretation: CPI > 1 indicates cost efficiency; CPI < 1 indicates cost overrun

• Schedule Variance (SV): EV - PV
• Cost Variance (CV): EV - AC

• Use charts and graphs to display trends in SPI and CPI
• Include variance charts to show deviations from the plan

• Provide periodic updates to reflect the latest data
• Compare current metrics with previous periods to track performance over time

• Offer insights and suggest corrective actions based on SPI and CPI trends
• Highlight potential risks and mitigation strategies