In this week’s lecture, we learned about planned value and actual cost. Planned value is the value of the work you are supposed to have on a certain date. While the actual cost is the cost of the project actually winds up being.
For my capstone project, we had to come up with an estimated budget to develop our mobile application and potentially pay people to see if the application can be crashed. We estimated a budget of about $2,000, but at the end of the project, we spent less than what we proposed. Thus, our cost variance was less than what we thought and thus we were under budget in creating the mobile application. We did not conduct a schedule variance. Moreover, we did not have planned value for our project. So we were not able to see the value of our project.
Share a time when you oversaw a project in school or industry that you had to do a budget. How did your budget play out? Was it over or under? Why? Did your company or team have a planned value for the project? If so, how was the schedule variance?