Earned Value Management

Earned Value Management
EVM in 1+10 + 1 slides
Tiago Franco (gama.franco@gmail.com)

Agenda
Once upon a time…
The Project
Mental Note
How Much Did I Spent?
Am I On Time?
Am I On Budget?
The Full Picture
The Variances & Indicators (juicy)
Quiz

Once upon a time…

The Project
Image from: http://www.fiosinc.com/

Mental Note
PV - Planned Value
How much should I spend and execute?
AC - Actual Cost
How much did I spent?
EV - Earned Value
How much did I execute?

How Much Did I Spent?
Image from: http://www.wikipedia.org

Am I On Time?

Am I On Budget?

The FullPicture

The Variances & Indicators (Juicy)
CV = Cost Variance = EV – AC
If CV < 0 then executing at an higher cost
If CV > 0 then executing at an lower cost
SV = Schedule Variance = EV – PV
If SV < 0 then going slower than planned
If SV > 0 then going faster than planned

The Variances & Indicators (Juicy)
CPI – Cost Performance Index = EV/AC
If CPI < 1 then executing at an higher cost
If CPI > 1 then executing at an lower cost
SPI - Schedule Performance Indicator = EV/PV
If SPI < 1 then going slower than planned
If SPI > 1 then going faster than planned

Quiz
Is a CPI > 1 and/or an SPI > 1 a good thing?