TABLE OF CONTENTS Logistics programs, like many other types of programs, have to be managed from a cost and schedule standpoint. The process to manage them includes the following steps:
Define the work.
Plan the work.
Work the plan.
Collect the results.
Measure performance.
Analyze deviations.
Take corrective action.
After Step 7 "Take corrective action" is taken, the process is repeated from Step 4 "Collect results" as many times as necessary to eliminate any deviations in performance.
Work is typically planned using a schedule. The schedule provides planned dates for the activities and milestones associated with the project.
A budget is a spending plan that forecasts anticipated expenses. It is not to be confused with funds. A budget is a list of economic figures used for planning and comparison with actual expenditures. A budget is executed; funds are spent.
The metrics used to evaluate the status of a program include
Budgeted Cost of Work Performed (BCWP): The sum of the approved cost estimates for activities (or portions of activities) completed during a given period (usually from the start of the project to the current date).
Budgeted Cost of Work Scheduled (BCWS): The sum of the approved cost estimates for the activities scheduled to be performed during a given period (usually from the start of the project to the current date). It is the portion of the budget that has been allocated for the work scheduled.
Actual Cost of Work Performed (ACWP): These...
