Cost trend analysis is a method of controllingproject costs that
allows regular estimates to be made of the total cost of aproject at the
expected completion date. The center of
the method is the determination of the completion value. The
estimated value of the total costs (SGK) is calculated from the
planned total costs (PGK) calculated in the project cost planning,
the periodically determined actual costs (AIK) and the current
completion value (AFW)
of the work packages, from which the following formula can be
derived: SGK= PGK (AIK/AFW). The AIK/AFW ratio represents a cost increase factor
that is applied to the estimate. The determined estimated value of
the total costs is graphically represented by the cost trend curve,
the values of which must be commented. In addition, comments on the
deviations from the planned costs are required and possible
corrective measures must be attached. The estimated value of the
total project costs is only
a trend assumption,
which assumes that the respective development will continue.
(Source: GPM, Mehrmann/Wirtz)