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EVMEARNED VALUE MANAGEMENT EARNED VALUE ANALYSIS FOR PROJECTS OF CONSTRUCTION SECTOR 
IBEN ENGENHARIA LTDA.
IBEN ENGENHARIA LTDA. THISTECHNIQUEISEXTREMELLYUSEFULFORTHEORGANIZATION,SINCEITPROVIDESAPICTUREWITHPRECISEDATEONTHEPROJECT’SSTATUSANDPROGRESS. ANSWERTHEFOLLOWINGQUESTIONS; 
-AREWEWITHINSCHEDULE? 
-AREWEWITHINBUDGET? 
-WHATARETHEDEVIATIONS? 
-WHATISTHEDEVIATIONTENDENCYUNTILAGIVENDATE? 
-WHENWILLWEFINISH? 
-WHATWILLBETHEFINALCOST? 
-HOWCANWECONTROLTHETENDENCY? INORDERTOANSWERTHESEQUESTIONS,WENEEDTOGOTHROUGHAFEWPROJECTADVANCEPLANNINGANDMONITORING. WEWILLBEGINWITHTHECOSTBASELINEREPRESENTEDBYA“S”CURVE.
IBEN ENGENHARIA LTDA. 
Cost baseline –Predicted Value “VP”. 
Analysis of “S” curve EVM aggregate value
IBEN ENGENHARIA LTDA. 
NEXT WE ANALYZE THE BEHAVIOR OF ACTUAL EXPENSES INCURRED DURING THE PERFORMANCE OF THE PROJECT. 
Real Expenses–Actual Costs “CR” 
Analysis of “S” curve EVM aggregate value
IBEN ENGENHARIA LTDA. 
THIS DEVIATION CANNOT BE INTERPRETED WITHOUT PREVIOUSLY MAKING AN EARNED VALUE ANALYSIS, WHICH CONSISTS OF DETERMINING THE VALUE OF THE ENTIRE SERVICE PERFORMED UP UNTIL THAT MOMENT. 
I.E.... 
IFTHEPREDICTEDVALUE(VP)UNTILAGIVENMOMENTISOFR$1,000,000. 
THEACTUALCOSTS(CR)ARTTHESAMEMOMENTISOFR$1,065,000. 
ITISALSONECESSARYTODETERMINETHEEARNEDVALUE(VA)INORDERTOANSWERTHEQUESTION:AREWEWITHINSCHEDULE?AREWEWITHINBUDGET? 
LET’SSEE...
IBEN ENGENHARIA LTDA. 
(VP)R$1,000,000. 
(CR)R$1,065,000. 
AND 
(VA)R$1,065,000. 
MEANSSAYINGTHATTHEPROJECTISCOSTINGEXACTLYWHATITSHOULDCOST,SINCEVA= CR,ANDTHEPROJECTIS6.5%AHEADOFSCHEDULE. 
INOTHERWORDS,THECOSTPERFORMANCEINDEX(IDC)=1.000ANDTHEDEADLINEPERFORMANCEINDEX(IDP)=1.065. 
INANOTHEREXAMPLE
IBEN ENGENHARIA LTDA. 
(VP)R$1.000,000. 
(CR)R$900,000. 
AHASTYANALYSISWOULDSAYTHAT“WESAVED10%.” 
HOWEVER,HOWMUCHDIDWEREALLYEARN? 
(VA)R$800,000,R$900,000,R$1.000,000? 
ONLYAJOINTANALYSISOFALLTHREEVALUESISCONCLUSIVEANDTHEGRAPHICREPRESENTATIONHELPSTHEQUICKVISUALIZATIONOFTHEPROJECT’SWHOLEPICTURE.
IBEN ENGENHARIA LTDA. 
Despesas Reais –Custo Real CR. Analysis of “S” curve EVM aggregate value
IBEN ENGENHARIA LTDA. 
Despesas Reais –Custo Real CR. 
DESPITE CR BEING HIGHER THAN VP 
Analysis of “S” curve EVM aggregate value
IBEN ENGENHARIA LTDA. 
Despesas Reais –Custo Real CR. Apesar do CR ser maior que o VP 
VA IS HIGHER THAN CR, WHICH MEANS COST SAVINGS 
Analysis of “S” curve EVM aggregate value
IBEN ENGENHARIA LTDA. 
Despesas Reais –Custo Real CR. 
Apesar do CR ser maior que o VP 
VA IS HIGHER THAN VP, WHICH MEANS WE ARE AHEAD OF SCHEDULE 
Analysis of “S” curve EVM aggregate value
IBEN ENGENHARIA LTDA. 
WRITTENBYEDUARDOMILITÃOELIAS,MBA/PMP® ID1396759SPONSOREDBYCONSTRUTORAIBENLTDA.,RCPPMI® ID1463462

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Earned value analysis

  • 1. EVMEARNED VALUE MANAGEMENT EARNED VALUE ANALYSIS FOR PROJECTS OF CONSTRUCTION SECTOR IBEN ENGENHARIA LTDA.
  • 2. IBEN ENGENHARIA LTDA. THISTECHNIQUEISEXTREMELLYUSEFULFORTHEORGANIZATION,SINCEITPROVIDESAPICTUREWITHPRECISEDATEONTHEPROJECT’SSTATUSANDPROGRESS. ANSWERTHEFOLLOWINGQUESTIONS; -AREWEWITHINSCHEDULE? -AREWEWITHINBUDGET? -WHATARETHEDEVIATIONS? -WHATISTHEDEVIATIONTENDENCYUNTILAGIVENDATE? -WHENWILLWEFINISH? -WHATWILLBETHEFINALCOST? -HOWCANWECONTROLTHETENDENCY? INORDERTOANSWERTHESEQUESTIONS,WENEEDTOGOTHROUGHAFEWPROJECTADVANCEPLANNINGANDMONITORING. WEWILLBEGINWITHTHECOSTBASELINEREPRESENTEDBYA“S”CURVE.
  • 3. IBEN ENGENHARIA LTDA. Cost baseline –Predicted Value “VP”. Analysis of “S” curve EVM aggregate value
  • 4. IBEN ENGENHARIA LTDA. NEXT WE ANALYZE THE BEHAVIOR OF ACTUAL EXPENSES INCURRED DURING THE PERFORMANCE OF THE PROJECT. Real Expenses–Actual Costs “CR” Analysis of “S” curve EVM aggregate value
  • 5. IBEN ENGENHARIA LTDA. THIS DEVIATION CANNOT BE INTERPRETED WITHOUT PREVIOUSLY MAKING AN EARNED VALUE ANALYSIS, WHICH CONSISTS OF DETERMINING THE VALUE OF THE ENTIRE SERVICE PERFORMED UP UNTIL THAT MOMENT. I.E.... IFTHEPREDICTEDVALUE(VP)UNTILAGIVENMOMENTISOFR$1,000,000. THEACTUALCOSTS(CR)ARTTHESAMEMOMENTISOFR$1,065,000. ITISALSONECESSARYTODETERMINETHEEARNEDVALUE(VA)INORDERTOANSWERTHEQUESTION:AREWEWITHINSCHEDULE?AREWEWITHINBUDGET? LET’SSEE...
  • 6. IBEN ENGENHARIA LTDA. (VP)R$1,000,000. (CR)R$1,065,000. AND (VA)R$1,065,000. MEANSSAYINGTHATTHEPROJECTISCOSTINGEXACTLYWHATITSHOULDCOST,SINCEVA= CR,ANDTHEPROJECTIS6.5%AHEADOFSCHEDULE. INOTHERWORDS,THECOSTPERFORMANCEINDEX(IDC)=1.000ANDTHEDEADLINEPERFORMANCEINDEX(IDP)=1.065. INANOTHEREXAMPLE
  • 7. IBEN ENGENHARIA LTDA. (VP)R$1.000,000. (CR)R$900,000. AHASTYANALYSISWOULDSAYTHAT“WESAVED10%.” HOWEVER,HOWMUCHDIDWEREALLYEARN? (VA)R$800,000,R$900,000,R$1.000,000? ONLYAJOINTANALYSISOFALLTHREEVALUESISCONCLUSIVEANDTHEGRAPHICREPRESENTATIONHELPSTHEQUICKVISUALIZATIONOFTHEPROJECT’SWHOLEPICTURE.
  • 8. IBEN ENGENHARIA LTDA. Despesas Reais –Custo Real CR. Analysis of “S” curve EVM aggregate value
  • 9. IBEN ENGENHARIA LTDA. Despesas Reais –Custo Real CR. DESPITE CR BEING HIGHER THAN VP Analysis of “S” curve EVM aggregate value
  • 10. IBEN ENGENHARIA LTDA. Despesas Reais –Custo Real CR. Apesar do CR ser maior que o VP VA IS HIGHER THAN CR, WHICH MEANS COST SAVINGS Analysis of “S” curve EVM aggregate value
  • 11. IBEN ENGENHARIA LTDA. Despesas Reais –Custo Real CR. Apesar do CR ser maior que o VP VA IS HIGHER THAN VP, WHICH MEANS WE ARE AHEAD OF SCHEDULE Analysis of “S” curve EVM aggregate value
  • 12. IBEN ENGENHARIA LTDA. WRITTENBYEDUARDOMILITÃOELIAS,MBA/PMP® ID1396759SPONSOREDBYCONSTRUTORAIBENLTDA.,RCPPMI® ID1463462