DOCSLIB.ORG

Co-Op Essentials: What They Are and the Role of Members, Directors

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Co-Op Essentials: What They Are and the Role of Members, Directors Co-op Essentials: What They Are and the Role of Members, Directors, Managers, and Employees (Powerpoint Slides corresponding with Cooperative Information Report 11, Chapters 1- 5) United States Department of Agriculture Rural Development www.rurdev.usda.gov Committed to the Future of Rural Communities CIR 11 Chapter 1 - What Cooperatives Are 1 CHAPTER 1 – WHAT COOPERATIVES ARE Focuses on what cooperatives are, and explains their business, principle, and structural characteristics. It introduces the major participants—members, directors, managers, and employees—whose roles are discussed in greater depth in Chapters 2-5. CIR 11 Chapter 1 - What Cooperatives Are 2 In the U.S., businesses are organized in different ways depending on: • Who owns it • Who controls it • Who uses it • Who gets the profit (earnings) from it CIR 11 Chapter 1 - What Cooperatives Are 3 Business Organizations • Individually owned • Partnership • Corporation – Cooperatives CIR 11 Chapter 1 - What Cooperatives Are 4 Individually Owned Business One Person •Owns • Controls • Operates • Benefits/profits CIR 11 Chapter 1 - What Cooperatives Are 5 Partnership Two or more people •Own • Control • Operate • Share in risks and profit CIR 11 Chapter 1 - What Cooperatives Are 6 Corporation Multiple owners • Are investors • Share profits (according to investment) • Purpose - gain value for investors CIR 11 Chapter 1 - What Cooperatives Are 7 Cooperatives Are a Type of Corporation • Multiple owners who are user members • Variety of goods and services • Physical facilities • State chartered • Members are investors • Owned and controlled by members who use its services CIR 11 Chapter 1 - What Cooperatives Are 8 Cooperatives • Are primarily controlled by a board of directors elected by and from members • Derive equity from member owners • Operate for the benefit of member owners • Allocate earnings to members based on use • Earnings from member business is taxed once • Have perpetual existence CIR 11 Chapter 1 - What Cooperatives Are 9 The Cooperative Form of Business Is Prevalent in the U.S. • There are more than 29,000 cooperatives • Serve 350 million members (many people belong to more than one cooperative) • They have assets of more than $3.1 trillion • They generate revenue of more than $510 billion • Employ more than 850 thousand people Source: University of Wisconsin Center for Cooperatives, Research on the Economic Impact of Cooperatives, 2009. http://reic.uwcc.wisc.edu/issues/ CIR 11 Chapter 1 - What Cooperatives Are 10 Financial, Consumer Service, Business, and Worker Cooperatives Provide • Credit • Child care • Transportation • Wholesale goods and • Facilities supplies • Recreational • Electricity Equipment • Telephone and • Food electric services • Housing • Farm production • Health care supplies and service • Home care • Farm product marketing And more… CIR 11 Chapter 1 - What Cooperatives Are 11 Cooperatives Have Unique Principles User - Owner User - Control User - Benefits CIR 11 Chapter 1 - What Cooperatives Are 12 User-Owner Principle The people who own and finance the cooperative are those who use it. CIR 11 Chapter 1 - What Cooperatives Are 13 User-Control Principle The people who use the cooperative are those who control it. CIR 11 Chapter 1 - What Cooperatives Are 14 Members Exercise Control By: • Voting at annual and membership meetings. • Electing Board of Directors. • Making decisions on major cooperative issues. CIR 11 Chapter 1 - What Cooperatives Are 15 User-Benefit Principle The cooperative’s sole purpose is to provide and distribute benefits to members on the basis of their use. CIR 11 Chapter 1 - What Cooperatives Are 16 User-Benefits • Bargaining power • Reduced costs • Market access • Improved products and • Political action quality of services • Community • Economic strength enhancement • Value-added • Competitive yardstick CIR 11 Chapter 1 - What Cooperatives Are 17 Cooperatives Implement and Facilitate Basic Practices • Patronage refunds - distribute earnings to members based on use • Limited return on equity capital - members form cooperatives for service, not for a monetary return on investment • Cooperation with other cooperatives - joint ventures, MAC’s, networks, alliances, working relationships, etc. • Cooperative education - promote the cooperative way of doing business and educate members, directors, and employees CIR 11 Chapter 1 - What Cooperatives Are 18 Geographical Structure Defines a cooperative’s size and scope of operations in reference to serving its members. May be: • Local - small region covered, a county or so (may or may not have multiple locations) • Regional – cover a State or a number of States; some have international operations CIR 11 Chapter 1 - What Cooperatives Are 19 Cooperative Governance System Overall Structure Defines who the members are and how the cooperative is organized to serve them. May be: • Centralized - Individuals are direct members • Federated - Cooperatives are direct members • Mixed – both individuals and cooperatives are direct members CIR 11 Chapter 1 - What Cooperatives Are 20 Centralized Structure Cooperative Member Member Member CIR 11 Chapter 1 - What Cooperatives Are 21 Federated Structure Cooperative Local Local Cooperative Cooperative Member Member Member Member CIR 11 Chapter 1 - What Cooperatives Are 22 Mixed Structure Cooperative Local Member Member Cooperative Member Member Member CIR 11 Chapter 1 - What Cooperatives Are 23 Cooperative Functions Three Core Functions • Marketing - take members’ products through processing, distribution, and sale • Purchasing - providing needed supplies and goods • Service - provide needed services CIR 11 Chapter 1 - What Cooperatives Are 24 Marketing Cooperatives Assist members in maximizing returns from goods they produce by: • Handling, processing, and selling • Grading, transporting, and bargaining • Adding value • Researching and developing new products CIR 11 Chapter 1 - What Cooperatives Are 25 Marketing Cooperatives Assist members in maximizing the return they receive for the goods they produce! Functions Member •Transport Products •Process Member Benefits Agricultural •Grade Control of products, Forestry •Add value securing markets, Aquaculture •Research realize additional Horticulture •Distribute margins Crafts •Bargain •Sell CIR 11 Chapter 1 - What Cooperatives Are 26 Purchasing Cooperatives Provide members access to production supplies and goods by: • Purchasing in bulk to reduce costs and increase purchasing power • Providing members with direct ownership of refineries, plants, retail facilities, research facilities, etc. • Obtaining supplies not available elsewhere. CIR 11 Chapter 1 - What Cooperatives Are 27 Purchasing Cooperatives Used by members to gain access to affordable, quality supplies Members •Producers Functions •Hardware •Refineries Member Benefits stores •Plants • Reduced costs •Independent •Feed mills • Volume discounts grocery stores •Warehouse • Quality control •Fast food •Manufacture • Increased access franchises •Buy in bulk •Hospitals •Deliver •Building supplies CIR 11 Chapter 1 - What Cooperatives Are 28 Service Cooperatives Provide needed services • They meet various needs • They provide custom application of purchased supplies, transport of product, etc. • They provide utilities, credit, housing, health care, technology, transporation, etc. CIR 11 Chapter 1 - What Cooperatives Are 29 Service Cooperatives Used by members to gain access to affordable, quality services Functions •Farm applications Members •Credit Member Benefits •Producers •Electricity •Access to services •Rural •Communications •Affordable services residents •Insurance •Quality •Urban •Health care •Increased access residents •Schooling •Public •Housing •Home care CIR 11 Chapter 1 - What Cooperatives Are 30 Participation Roles Cooperatives operate through the roles of principal parties • Members • Directors • Manager • Employees CIR 11 Chapter 1 - What Cooperatives Are 31 Organizational Make-Up Members Board of Directors Manager Employees CIR 11 Chapter 1 - What Cooperatives Are 32 Summary • Cooperatives serve common interests of people for mutual benefit. • They are complex organizations with unique principles, practices, member benefits, and structural characteristics. • Cooperatives exist in many segments of the economy today providing many kinds of services that benefit their member owners. • Cooperatives consist of members, directors, management, and employees. All have important participation roles to fulfill. CIR 11 Chapter 1 - What Cooperatives Are 33 CHAPTER 2 – MEMBERS MAKE COOPERATIVES WORK Focuses on members—who they are and their responsibilities as owners, with particular emphasis on control, financing, and patronage. CIR 11 Chapter 1 - What Cooperatives Are 34 Cooperative Members Are • The foundation of the cooperative • The reason for the co-op’s existence • The supporters and financiers, and the shapers of the co-op’s future • Individuals, businesses, or other organizations (including other co-ops) • The ones that control the cooperative CIR 11 Chapter 1 - What Cooperatives Are 35 Exercising Member Responsibilities • Commitment and Use • Ownership and Control • Finance CIR 11 Chapter 1 - What Cooperatives Are 36 Member-Owner Commitment and Use Members need to commit to: • Using Products and Services • Maintaining Control • Providing Financing CIR 11 Chapter 1 - What Cooperatives Are 37 Member-Owner Commitment and Use Using the cooperative is members’ easiest responsibility to carry out, and by using it as much as they can, or
Load more

Recommended publications
  • Organizational Structure
    Organizational structure © 2019 The Predictive Index Organizational structure Why? When considering what will make a Organizational structure is the system that business strategy successful, it’s easy to defines how things get done on your team or in your organization, including task assignment, think of the people and resources needed managerial relationships, and communication. to move forward. However, the concept of Structures are developed during the process adjusting your organizational structure to known as organizational design, when you create a structure that allows you to best carry out your best suit your strategic vision is often strategic goals. Using the practice of neglected—despite the fact that structure organizational design, you can maximize your is a means by which you can successfully organizational structure by identifying blockers, creating new efficiencies, improving implement your strategy. communication, and eliminating or adding process steps where necessary. While the process of redesigning an organization’s structure is not a light undertaking, the consequences of the wrong organizational structure are considerable: lack of role clarity, diffusion of decision-making responsibility, siloed employees, and more. In this document, you’ll review a few crucial components of organizational structure, as well as several more popular structures and their benefits. 2 Structural components Spans and layers Managers’ average span of control and the Span of control number of layers in the chain of command Span of control refers to the number of subordinates reporting into any manager. Wide are often referred to by analysts as “spans span of control is appropriate when efficiency is and layers.” There are two considerations of crucial importance, or when many employees to make here: firstly, how wide should span in a division have similar goals and can therefore be managed by the same person.
    [Show full text]
  • Analysis of the Importance of Business Process Management Depending on the Organization Structure and Culture
    Proceedings of the 2013 Federated Conference on Computer Science and Information Systems pp. 1079–1086 Analysis of the importance of business process management depending on the organization structure and culture Witold Chmielarz Marek Zborowski Aneta Biernikowicz University of Warsaw Faculty of University of Warsaw Faculty of BOC Information Technologies Management ul. Szturmowa 1/3, Management ul. Szturmowa 1/3, 02-678 Consulting al. Jerozolimskie 109/26, 02-678 Warszawa, Poland Warszawa, Poland 02-011 Warszawa, Poland Email: [email protected] Email: Email: aneta.biernikow- [email protected] [email protected] Abstract–the present survey mainly aims at analysing processes – more efficiently implemented than through determinants of possibilities of improving processes in an competition on a given market), where proper relations organization. The early fragments of the study are devoted to a result from combining the results of the processes with Key theoretical analysis of determinants of the process management Performance Indicators (KPI); the organizational structure – and its connection with the project management. Then the assumptions of the survey on the impact of the organizational with the possibility of questioning the inviolability and structure and culture on possibilities of applying business optimum of the present state, which serves a basis of a process management were presented. The verification of possibility of improving the organization, including also theoretical deliberations and survey assumptions is included in transferring and distributing tacit knowledge through a social the last part of the article presenting the initial results of the component of corporate portals and sharing it with other obtained survey and the resulting conclusions.
    [Show full text]
  • Professional Profile and the Role in the Cross-Functional Integration of SCM
    Supply chain managers: professional profile and the role in the cross-functional integration of SCM Andréia de Abreu ( [email protected] ) Federal University of São Carlos Rosane Lúcia Chicarelli Alcântara ( [email protected] ) Federal University of São Carlos Abstract Supply chain management can be seen as a way to achieve integration of all corporate functions. Due to this, the objective of this paper is to present the theoretical indications regarding professional profile recommended for the supply chain management and discuss the role of these professionals in cross-functional business processes. Keywords: Supply chain management, Supply chain managers, Integration Introduction Despite the popularization of the concept since its introduction in the 1980s, the Supply Chain Management (SCM) is considered a discipline still in formation (Chen and Paulraj 2004, Tiwari et al. 2014). Its body of knowledge has been formed in confluence with areas such as logistics, operations management, information technology, marketing, resulting in principles and specific strategies, as demand management, postponement, e-supply chain, sustainable chain and others. In practice, SCM are complex and characterized by numerous activities spread over multiple functions and organizations, which pose challenges to reach effective implementation (Maleki and Cruz-Machado 2013). According to Teller et al. (2012) most of the initiatives to implement the practices and principles of SCM fail or are not completed. Studies have pointed out two main reasons for this fact: (i) the low observance of the human factor in behavioral and professional profile terms (Rossetti and Dooley 2010, Sohal 2013) and (ii) inadequate organizational structure to promote intra-organizational flows (Kim 2007, Oliva and Watson 2011), both have a negative impact on integration (Cousins and Menguc 2006, Fawcett et al.
    [Show full text]
  • Evolving Procurement Organizations: a Contingency Model for Structural Alternatives
    Bals, L.a b/Laine, J.c/Mugurusi, G.d Evolving Procurement Organizations: A Contingency Model for Structural Alternatives Paper No. 1/2015, published March 01, 2015 a Supply Chain & Operations Management, University of Applied Sciences Mainz, Lucy-Hillebrand-Str. 2, 55128 Mainz, Germany, [email protected] b Department of Strategic Management and Globalization (SMG), Copenhagen Business School (CBS), Kilevej 14, 2. Floor, 2000 Frederiksberg, Denmark; [email protected] c Aalto University, School of Science, Department of Industrial Engineering, Otaniementie 17, 02150 Espoo, Finland, [email protected] d Department of Industrial Economics and Technology Management (IØT), Norwegian University of Science and Technology (NTNU), Alfred Getz vei 3, 7491 Trondheim, Norway; [email protected] Please cite as: Bals, Lydia/Laine, Jari/Mugurusi, Godfrey (2015): Evolving Procurement Organizations: A Contingency Model for Structural Alternatives. In: UASM Discussion Paper Series No. 1, University of Applied Sciences Mainz/Germany. UASM Discussion Paper Series University of Applied Science Mainz ISSN 2366-9578 Editors: Porath, D./Schrank R./Schüle, U./(eds.): The following papers have appeared so far in this series: Bals, L./Laine, J./Mugurusi, G.: Evolving Procurement Organizations: A Contingency Model for Structural Alternatives. Published March 2015. Schüle, U/Kleisinger, T: The “Spaghetti Bowl”: A Case Study on Processing Rules of Origin and Rules of Cumulation. Published April 2016 Sputek, A: Der Markt für Wohnimmobilien in schrumpfenden Regionen – eine mikroökonomische Analyse Published August 2016 Porath, D: Size and Dynamics of Order-of-Entry Effects in Pharmaceutical Markets Published September 2016 Papers may be downloaded from this site by individuals, for their own use, subject to the ordinary rules governing fair use of professional scholarship (see further, Copyright statement).
    [Show full text]
  • Illustrated-Guide-To-Org-Structures.Pdf
    TABLE OF CONTENTS 1. An Introduction to Organizational Structures pg. 2 2. Building Blocks: Organizational Structure Basics pg. 3 3. Types of Organizational Structures pg. 8 4. Marketing Team Org Structures: 7 Real-World Examples pg. 17 5. How to Structure a Modern Marketing Team pg. 24 Created by: Erik Devaney | @BardOfBoston | Content Strategist, HubSpot 1 INTRODUCTION To put it in the simplest terms possible, an organizational structure describes how a company, division, team, or other organization is built; how all of its various components fit together. More specifically, it is a framework that organizes all of the formal relationships within an organization, establishing lines of accountability and authority, and illuminating how all of the jobs or tasks within an organization are grouped together and arranged. Ideally, the type of structure your company, division, or team implements should be tailored to the specific organizational goals you’re trying to accomplish. Because ultimately, even if an organization is filled with great people, it can fall apart (or fail to operate efficiently) if the structure of the organization is weak. As executive coach Gill Corkindale noted in a Harvard Business Review article, “Poor organizational design and structure results in a bewildering morass of contradictions: confusion within roles, a lack of co-ordination among functions, failure to share ideas, and slow decision-making bring managers unnecessary complexity, stress, and conflict.” In this guide, we’ll explore the world of organizational structures by taking a visual approach. The guide includes several organizational structure diagrams (or “org charts”), which highlight structures that can be applied to entire businesses as well as to marketing departments and teams.
    [Show full text]
  • Organization Structure Description for the Needs of Semantic Business Process Management
    Organization Structure Description for the Needs of Semantic Business Process Management Witold Abramowicz1, Agata Filipowska1 Monika Kaczmarek1, Carlos Pedrinaci2, Monika Starzecka1, and Adam Walczak1 1 Pozna´nUniversity of Economics, Department of Information Systems, 60-967 Pozna´n,Poland, fW.Abramowicz, A.Filipowska, M.Kaczmarek, M.Starzecka, [email protected] WWW home page: http://kie.ae.poznan.pl 2 Knowledge Media Institute, The Open University, Milton Keynes, UK, [email protected] WWW home page: http://kmi.open.ac.uk Abstract. Various attempts have been undertaken to further automate the BPM lifecycle. One of the recent initiatives in this area is the Se- mantic Business Process Management approach as pursued within the SUPER project. It aims at bridging the gap between business and IT worlds by increasing the degree of automation within the BPM lifecycle using Semantic Web and Semantic Web services technologies. In order to fulfil the SBPM vision, enterprises as well as their environment need to be properly described. The main contribution of this paper is a set of ontologies for describing organizational structures and examples showing how they may be combined with further organizational information, e.g., business functions and business roles, to support the automatic analysis of business processes. 1 Introduction A business process may be defined as a set of related, ordered activities that contribute to the production of good(s) or the delivery of some service. It em- phasises how the work is done within an organization and by its organization members. Therefore, organizations have their own context for any running busi- ness process even if they operate in the same domain.
    [Show full text]
  • Evolving Procurement Organizations: a Contingency Model for Structural Alternatives
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Bals, Lydia; Laine, Jari; Mugurusi, Godfrey Working Paper Evolving procurement organizations: A contingency model for structural alternatives UASM Discussion Paper Series, No. 1/2015 Provided in Cooperation with: Fachbereich Wirtschaft, Hochschule Mainz, University of Applied Sciences Suggested Citation: Bals, Lydia; Laine, Jari; Mugurusi, Godfrey (2015) : Evolving procurement organizations: A contingency model for structural alternatives, UASM Discussion Paper Series, No. 1/2015, University of Applied Sciences Mainz, Mainz This Version is available at: http://hdl.handle.net/10419/181885 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Bals, L.a b/Laine, J.c/Mugurusi, G.d Evolving Procurement Organizations: A Contingency Model for Structural Alternatives Paper No.
    [Show full text]
  • Accounting and Organizational Structure
    Accounting and Organizational Structure ACCOUNTING AND ORGANIZATIONAL STRUCTURE The City of Columbus, through its various offices and divisions, budgets for and/or administers many different types of primary and secondary funds. Included in this section is an excerpt from the City Auditor's Comprehensive Annual Financial Report, which describes the various types of funds administered by the city. Following this is a discussion of the organizational structure of the City of Columbus, along with a listing of principal officials. Accounting Structure The following discussion on the organization of the city's funds and account groups is excerpted from the City Auditor's Comprehensive Annual Financial Report. Governmental Funds General Fund - The general fund is the general operating fund of the city. It is used to account for all financial resources except those required to be accounted for in another fund. City of Columbus 2015 Budget 61 Accounting and Organizational Structure Special Revenue Funds - Special revenue funds are used to account for revenues derived from specific taxes, grants, or other restricted revenue sources. The uses and limitations of each special revenue fund are specified by city ordinances or federal and state statutes. Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term principal, interest, and related costs. Capital Project Funds - Capital project funds are used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). Proprietary Funds Enterprise Funds - Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.
    [Show full text]
  • Procurement Organizations
    Procurement Organization Evolving models Dr. Lydia Bals, Head of Procurement Solutions, Bayer CropScience AG Visiting Scholar, Copenhagen Business School Agenda Introduction to organizational models Development of models at Bayer Implementation at Bayer CropScience Evolution: where is it heading? Page 2 • Dr. Lydia Bals, Bayer CropScience • November, 2012 Agenda Introduction to organizational models Development of models at Bayer Implementation at Bayer CropScience Evolution: where is it heading? Page 3 • Dr. Lydia Bals, Bayer CropScience • November, 2012 Looking at Procurement Organization from a research angle Page 4 • Dr. Lydia Bals, Bayer CropScience • November, 2012 Three questions need to be addressed by an organizational model Questions to be addressed by an organizational model 1 Which dimensions dominate the organizational set up? First priority focus Second priority focus 2 What is the degree of centralization? Decentralized Center-led Centralized low high Degree of centralization 3 Which “enablers” can support the strengths and compensate the shortcomings of the organizational set up? Enablers Also compare: Procurement Strategy Council Page 5 • Dr. Lydia Bals, Bayer CropScience • November, 2012 Procurement functions face the challenge of satisfying four - increasingly demanding - organizational pulls 1 Customers The Pull: Internal clients expect more from Procurement. Getting Stronger: Along with greater savings expectations due to cash constraints, business partners increasingly look to Procurement to take on more complex tasks such as supply risk management. Categories Activities / Processes The Pull: Strategically manage The Pull: Increase productivity and individual spend categories. quality of Procurement work. Getting Stronger: After the initial Getting Stronger: Procurement has to round of sourcing a category, savings Procurement do more with less.
    [Show full text]
  • The Organizational Structure and Organizational Culture
    SCIENTIFIC RESEARCH PAPER The Organizational Structure and Organizational Culture Interdependence Analysis with a Special Reference to Bosnian and Herzegovinian Enterprises Delic Alisa*, Nuhanovic Senija, Univerzity of Tuzla, Faculty of Economics, Bosnia and Herzegovina UDC: 658(497.6) JEL: L21 ABSTRACT – The aim of this paper is to point to the very nature of the relationship between the organizational structure and organizational culture as very important mechanisms by means of which enterprises set their employeesʹ behavior on the target course, or direct their efforts at accomplishing organizational goals, respectively. Besides the examination of the phenomenon of the organizational structure and organizational culture at the general level, the paper also includes the analysis of empirical study results entailing Bosnian enterprises. The research was made for two reasons. The first one was to identify the formalization and centralization level. The second one was to identify dominant organizational types of the structure and the culture (using the Charles Handy’s culture typology). The research analysis was made with respect to the interaction between organizational structure and organizational culture on one hand, and the point of view of the national culture and transitional processes characteristic of the area on the other hand. KEY WORDS: organizational structure, organizational culture, types of organizational structure, types of organizational culture The term and importance of organizational culture Since the 80-s the attention of the increasing number of theoreticians has been drawn to the organizational culture concept, which has become the subject to important researches and studies. However, the time reference does not necessarily imply that the phenomenon was not recognized as important in the organizational life earlier.
    [Show full text]
  • EVM How to Guide
    MANAGING CAPITAL INVESTMENTS AT THE INDIAN HEALTH SERVICE A “HOW-TO” GUIDE TO EARNED VALUE MANAGEMENT JULY 2007 [Click here and type chapter title)] ACKNOWLEDGEMENT The Indian Health Service gratefully acknowledges the assistance of the National Institutes of Health, Office of the Deputy Chief Information Officer, in the preparation of this document. The document was prepared for the National Institutes of Health and adapted for the Indian Health Service. 2 Contents PURPOSE .................................................................................................................... 1 THE BASICS ................................................................................................................. 1 What Is Earned Value?......................................................................................... 1 What Is Earned Value Management?................................................................... 2 Why Use EVM? .................................................................................................... 2 What Is an Earned Value Management System?................................................. 3 Is EVM Too Costly for Small Projects?................................................................. 3 What Automated Tools Are Available to Support EVM Requirements?............... 3 What Are the Key EVM Terms?............................................................................ 4 What Are the Required EVM Elements? .............................................................. 5 THE PROCESS.............................................................................................................
    [Show full text]
  • Earned Value Management Best Practices Report
    Appendix D – Glossary Of Terms The notational style used in this glossary is to begin the definition of each defined term with a new paragraph beginning with the term in UPPERCASE. Any word or phrase used in a definition may appear in UPPERCASE ITALICS to call attention to the fact that a definition of the word or phrase is included elsewhere in the glossary. ACTUAL COST (AC or ACWP) – The costs actually incurred and recorded in accomplishing the work performed within a given time period. Also known as the ACTUAL COST OF WORK PERFORMED. ACTUAL COST OF WORK PERFORMED (ACWP or AC) – See ACTUAL COST. AUTHORIZED WORK – Effort (scope of work) on a contract or assigned by management; work that is within the scope of the applicable statement of work or contract. BUDGET AT COMPLETION (BAC) – The total budget planned to accomplish the work defined for a work package or project. For a project, the BAC includes any UNDISTRIBUTED BUDGET but does not include any MANAGEMENT RESERVE. BUDGETED COST OF WORK PERFORMED (BCWP) – A measure of the work completed expressed as the planned cost or budgeted amount the work was supposed to have cost. As an example, if an activity were planned to have cost ten dollars, when the activity is complete, we attribute to the activity a BUDGETED COST OF WORK COMPLETED amount equal to ten dollars. The BCWP is also known as “EARNED VALUE.” BUDGETED COST OF WORK REMAINING (BCWR) – The difference between the BUDGET AT COMPLETION and the cumulative EARNED VALUE for a project or WORK PACKAGE.
    [Show full text]