Earned Value Management (EVM)
<ul><li>EVM is used to track the Progress and Status of a Project and Forecast its future performance. </li></ul><ul><li>E...
<ul><li>Three basic elements of EVM ; </li></ul><ul><li>Planned Value ( PV  - BCWS)  </li></ul><ul><li>Actual Cost (AC - A...
Planned Value (PV) ; (BCWS) or (PV) = total cost of the work Scheduled /Planned as-of a reporting date. Calculated: PV or ...
Actual Cost (AC) ; (AC) or (ACWP) is the total cost taken to complete the work as of a reporting date. Calculated:   AC or...
Earned Value (EV) ; (EV) or (BCWP) = total cost of work Completed/Performed as of a reporting date. Calculated: EV or BCWP...
% Completed Planned ; = PV / BAC % Completed Actual ; Percentage of work actually completed by the Reporting Date.  % Comp...
Project Schedule and Cost variance. <ul><li>Schedule Variance (SV);   </li></ul><ul><ul><li>Earned Value - Planned Value  ...
Keys ; <ul><li>Work Breakdown Structures. </li></ul><ul><li>Discreet Element “Tasks” verses Level of Effort “activity”. </...
Earned Value Management (EVM)
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Evm Basics

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Evm Basics

  1. 1. Earned Value Management (EVM)
  2. 2. <ul><li>EVM is used to track the Progress and Status of a Project and Forecast its future performance. </li></ul><ul><li>EVM integrates the; </li></ul><ul><ul><li>Scope </li></ul></ul><ul><ul><li>Schedule </li></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><li>of a project and can be used to derive; </li></ul><ul><ul><li>past performance of the project </li></ul></ul><ul><ul><li>current performance of the project </li></ul></ul><ul><ul><li>predict the future performance of the project </li></ul></ul><ul><li>by use of statistical techniques. </li></ul>
  3. 3. <ul><li>Three basic elements of EVM ; </li></ul><ul><li>Planned Value ( PV - BCWS) </li></ul><ul><li>Actual Cost (AC - ACWP) </li></ul><ul><li>Earned Value (EV - BCWP) </li></ul><ul><li>… all captured on an as-of reporting date and derived from a WBS associating costs to tasks. </li></ul>
  4. 4. Planned Value (PV) ; (BCWS) or (PV) = total cost of the work Scheduled /Planned as-of a reporting date. Calculated: PV or BCWS = Hourly Rate * Total Hours Planned or Scheduled NOTE: Hourly Rate is the rate at which effort will be valued.
  5. 5. Actual Cost (AC) ; (AC) or (ACWP) is the total cost taken to complete the work as of a reporting date. Calculated:   AC or ACWP = Hourly Rate * Total Hours Spent
  6. 6. Earned Value (EV) ; (EV) or (BCWP) = total cost of work Completed/Performed as of a reporting date. Calculated: EV or BCWP = Baseline Cost * % Complete Actual
  7. 7. % Completed Planned ; = PV / BAC % Completed Actual ; Percentage of work actually completed by the Reporting Date. % Completed Actual = AC / EAC
  8. 8. Project Schedule and Cost variance. <ul><li>Schedule Variance (SV); </li></ul><ul><ul><li>Earned Value - Planned Value </li></ul></ul><ul><ul><li>BCWP – BCWS </li></ul></ul><ul><li>Cost Variance (CV); </li></ul><ul><ul><li>Earned Value - Actual Cost </li></ul></ul><ul><ul><li>BCWP - ACWP </li></ul></ul>
  9. 9. Keys ; <ul><li>Work Breakdown Structures. </li></ul><ul><li>Discreet Element “Tasks” verses Level of Effort “activity”. </li></ul><ul><li>Valuation of Tasks and Concatenation to a whole (process). </li></ul><ul><li>Measurement. </li></ul>
  10. 10. Earned Value Management (EVM)

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