This document is the process used for updating and maintaining EVM on one of the projects I managed.

1. Earned Value on A T24 Temenos Project
The project has elected to use a method called “Earned Value” to plan and track progress. The
work stream leads are required to define a list of high level project tasks and estimate the time
that each task will require. A predicted completion date for each task can be estimated by
determining when the project will have expended the requisite effort. This is known as the
BCWS or Budgeted Cost of Work Scheduled.
The Earned Value (EV) method then assigns each task a value based upon its estimated cost /
effort. As each task progresses to completion the work stream “earns” the originally estimated
value for the task, known as the BCWP or Budgeted Cost of Work Performed.
The real cost or effort to complete the task is also tracked as the ACWP or Actual Cost of Work
Performed. The combination of these three values allows the T24 project to determine both cost
and schedule variances from the plan.
Within Share Point, performance of the two key indices is visible to all. These are CPi or Cost
Performance index and SPi or Schedule Performance index.
Guidelines for Work Stream Leads
1. ********* is responsible for maintaining the Plan and EV schedules.
2. Work Stream leads must provide a weekly update to the planning manager. This means
that if you have nothing to report you provide him an email stating that; i.e. a nil
submission. If you fail to submit a plan your Work Stream will automatically deteriorate
one notch in its RAG status, i.e. move from Green to Amber, or Amber to Red.
3. The planning manager will update share point on a weekly basis, currently scheduled for
Mondays.
4. As a Work Stream lead it is your responsibility to understand the implications of
movements within your plan and the residual impact on the EV indices (CPi; SPi).
5. The tolerance limits are currently set at +/- 10%. The normal performance is an index of
1.0. Below this indicates there is a negative variance from your plan, a reading above 1.0
indicates a positive variance, and a reading of 1.0 indicates performance according to
plan.
6. The Work Stream lead has the latitude to take corrective action when the performance
sits within the tolerance limits established under point 5 above. However, should they
exceed the tolerance limits then the management team will become involved. The Work
Stream lead should notify the Management team as soon as they become aware that they
will deviate beyond the established tolerance limits.
7. Although tracking EV occurs during project execution, it cannot be accomplished if
appropriate planning and budget allocation has not occurred.