This document provides an overview of earned value management and budget forecasting techniques. It defines key earned value terms like planned value, earned value, actual cost, cost variance, schedule variance, cost performance index, schedule performance index, estimate at completion and more. Formulas for calculating each metric are provided. An example project is used to demonstrate how to calculate and analyze the various earned value metrics. It explains that variances indicate performance above or below plan, while indexes above 1 or below 1 also indicate performance compared to plan. The document aims to help readers understand and apply earned value management principles.
Free notes on Project Scope Management,PMP Chapter 5, PMBOK, PMP Exam Preparation training
Why Manage Scope
Plan Scope Management
Collect Requirements
Define Scope
Create WBS
Validate Scope
Control Scope
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The seventh lesson of the course on Planning and Managing Software projects (http://emanueledellavalle.org/Teaching/PMSP-2011-12.html) that I give at Politecnico di Milano.
Project Mangement - overview of the Schedule Management knowledge area within project management. Describes the 6 processes within schedule management and the process groups impacted.
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Free notes on Project Scope Management,PMP Chapter 5, PMBOK, PMP Exam Preparation training
Why Manage Scope
Plan Scope Management
Collect Requirements
Define Scope
Create WBS
Validate Scope
Control Scope
Online PMP Training,Instructor led PMP training,PMP training online,PMP Training in USA,PMP Training in California,PMP Training in Qatar,PMP training in Saudi Arabia,PMP training in India,PMP training in Mumbai,PMP Training in Bangalore
The seventh lesson of the course on Planning and Managing Software projects (http://emanueledellavalle.org/Teaching/PMSP-2011-12.html) that I give at Politecnico di Milano.
Project Mangement - overview of the Schedule Management knowledge area within project management. Describes the 6 processes within schedule management and the process groups impacted.
Blog: https://agile-mercurial.com
YouTube: https://www.youtube.com/channel/UCPM82of2YuqIR1SgLGHa1eg
Twitter: https://twitter.com/agile_mercurial
Tumblr: https://agilemercurial.tumblr.com/
( ** PMP® Training: https://www.edureka.co/pmp ** )
This Edureka Tutorial on Project Management Fundamentals will give you the list of terms used mostly by the Project Managers along with other fundamental concepts in Project Management.
1. PMBOK® Guide
2. PMBOK® Evolution
3. PMBOK® Guide 5 vs PMBOK® Guide 6
4. PMBOK® Guide Edition 6
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This lecture provides a short but comprehensive review of earned value analysis and how this technique helps us to determined the project financial and schedule situation.
Construction Delay Analysis, SimplifiedMichael Pink
Learn how to perform a delay analysis in the construction industry. Capture and study your impacts to determine why a project was late. Use this proven method to ensure that you get paid for delays caused by others.
APM event held on 8 March 2018, sponsored by the SWWE branch.
Guest speaker, Merys Hopkins, first looked at portfolios, which APM define as a grouping of an organisations projects and programmes. The grouping can be by geographical location, capability, customer type, etc, as determined by the organisation’s circumstances. The portfolio should be designed to maximise return on investment, maintain skills in the workforce, and to aid control of costs and benefits.
This presentation explains the basics of a Project Management Framework (PMF). Why you need one, what the basic phases are, and goals/activities of each phase.
The concepts and processes on how to perform project schedule management according to PMBOK Guide 6th edition. You'll find key concepts and terms, plan schedule management, define activities, sequence activities, estimate activity duration, develop schedule, and control schedule.
( ** PMP® Training: https://www.edureka.co/pmp ** )
This Edureka Tutorial on Project Management Fundamentals will give you the list of terms used mostly by the Project Managers along with other fundamental concepts in Project Management.
1. PMBOK® Guide
2. PMBOK® Evolution
3. PMBOK® Guide 5 vs PMBOK® Guide 6
4. PMBOK® Guide Edition 6
Follow us to never miss an update in the future.
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This lecture provides a short but comprehensive review of earned value analysis and how this technique helps us to determined the project financial and schedule situation.
Construction Delay Analysis, SimplifiedMichael Pink
Learn how to perform a delay analysis in the construction industry. Capture and study your impacts to determine why a project was late. Use this proven method to ensure that you get paid for delays caused by others.
APM event held on 8 March 2018, sponsored by the SWWE branch.
Guest speaker, Merys Hopkins, first looked at portfolios, which APM define as a grouping of an organisations projects and programmes. The grouping can be by geographical location, capability, customer type, etc, as determined by the organisation’s circumstances. The portfolio should be designed to maximise return on investment, maintain skills in the workforce, and to aid control of costs and benefits.
This presentation explains the basics of a Project Management Framework (PMF). Why you need one, what the basic phases are, and goals/activities of each phase.
The concepts and processes on how to perform project schedule management according to PMBOK Guide 6th edition. You'll find key concepts and terms, plan schedule management, define activities, sequence activities, estimate activity duration, develop schedule, and control schedule.
Abstract— Execution of engineering projects are tracked against critical metrics such as safety, quality,
delivery cost and inventory. Earned value is a key parameter that helps in assessing delivery (schedule) and cost.
Static shows that 70% of projects are over budget behind schedule, 52% of all projects finish at 189% of their
initial budget and some, after huge investments of time and money, are simply never completed. The rest of this
paper gives a perspective on monitoring project health by Earned value analysis.
Earned value management (EVM) is a methodology that combines scope, schedule, and resource measurements to assess project performance and progress.
It is a commonly used method of performance measurement for projects.
It integrates the scope baseline with the cost baseline, along with the schedule baseline, to form the performance baseline, which helps the project management team assess and measure project performance and progress
By Er.Nikhil Raj, Senior Planning Enginner, Navig Solution Pvt Ltd
A simple approach to understanding Earned Value ManagementProPM Academy
The slide on Earned Value Management focuses on explaining the concepts in a simpler approach. The slides shows about how a project manager can use the Earned value concepts to depict his project progress, variance on the key performance measurement baseline. Project forecasting is been discussed separately with examples.
We are sure that the slides posted above, it would help potential as well as experienced PMs to gain a good insight into the EVM concepts
Hope you found this useful
Any queries / clarifications are most welcome
Earned Value AnalysisTracking Project ProgressWh.docxsagarlesley
Earned Value Analysis
Tracking Project Progress
What Is Earned Value?The dollar amount you planned to spend for the work actually completed
Earned Value is the budgeted cost of the work that has actually been performed/completed
Earned Value = Budgeted Cost of the Work Performed (BCWP)
What Is Earned Value Analysis (EVA)?
EVA enables the project progress to be tracked in terms of:
The work that has actually been completed
--- Compared To ---
The work that was scheduled to be completed
Why Is Earned Value Analysis Important?EVA enables the project team to know:If the project is ahead of, or behind schedule
How far the project is ahead of, or behind schedule
If the project is over or under budget
How much the project is over or under budget
Why Is Earned Value Analysis Important?EVA enables the team to address the project’s triple constraints earlier rather than later Scope – re-prioritize/reduce requirements
--- and/or ---
Schedule – adjust the timeline
--- and/or ---
Cost – request additional funding
The Components of Earned Value Analysis WBS – Work Breakdown StructureIdentifies products to be delivered by the project Products or sub-products should be broken down to what can be completed in 80 hours (“80-hour rule”), when applicable
Provides the basis for Distinct products or sub-products – which help to provideValid estimates – which enableTracking earned value / project progress
The Components of Earned Value Analysis Earned Value (EV) ---- or BCWPThe budgeted cost of the work actually performed How much work was actually completed
Planned Value (PV) ---- or BCWSThe budgeted cost of the work scheduled to be performed How much work should have been completed
Actual Cost (AC) ------- or ACWPThe actual cost of the work performedHow much money has been actually spent
The Components of Earned Value AnalysisBudget at Completion (BAC)Dollar amount originally budgeted to complete the project
Estimate at Completion (EAC)Estimate of dollar amount needed to complete the project
Variance at Completion (VAC)Estimate of the dollar amount projected above or below budget
Schedule at Completion (SAC)Projection of the time needed to complete the project
The Components of Earned Value Analysis
Schedule Variance (SV)The work completed vs. the work planned to be completed
SV = (Earned Value – Planned Value)
Tells us if the project is ahead of, or behind schedule
Negative value means the project is behind schedule
The Components of Earned ValueSchedule Performance Index (SPI)Utilized to forecast how long it will take to complete the project
SPI = (Earned Value / Planned Value)
Tells us if the project is ahead of, or behind schedule
Less than 1.00 means the project is behind schedule
The Components of Earned Value
Cost Variance (CV)What we planned to spend on the work completed vs. what was actually spent on the work completed
CV = (Earned Value – Actual Cost)
Tells us if the project is over or under budget ...
Track Project Performance - Earned Value ManagementBaroness PM
Earned Value Management (EVM) is a project management methodology used to track project performance as well as forecast future performance. This presentation will walk you through the calculations for EVM as well as performance reporting
Introduction
Overview of Key Performance Indicators ( KPI )
What Is The Earned Value Management ?
Why Project Managers Use EVM ?
Earned Value Management Terms and Formulas
Planned value (PV)
Earned value (EV)
Actual cost (AC)
Variance
Schedule Variance ( SV )
Cost Variance ( CV )
Performance Index
Schedule Performance Index (SPI)
Cost Performance Index (CPI)
Example ( Case Study )
Project Forecasting
Budget at Completion (BAC)
Estimate at Completion (EAC)
Estimate to Complete (ETC).
Variance at Completion (VAC)
To Complete Performance Index (TCPI)
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
1.4 modern child centered education - mahatma gandhi-2.pptx
Earned value analysis - presentation
1. “PMP® Certification Readiness”
Training Program
Module:Module:
Earned Value and Budget ForecastingEarned Value and Budget ForecastingEarned Value and Budget ForecastingEarned Value and Budget Forecasting
Ravikumar Kalose N, PMP®
http://www.propmacademy.com
1
ProPM Academy - 2011
"PMP® Exam Prep Course"
2. Understanding –
• Measurements - Subjective Vs Objective
• What is Earned Value (EV)
• Work Performance MeasurementsWork Performance Measurements
• Budget Forecasts
• Performance measurement parameters
• Various formulae and their interpretation
2
ProPM Academy - 2011
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3. Green
OR Red
?
What
IF…??
?
Can defend the
current Project
StatusAssertive
Relies on assumptions, interpretations based on
high level work status
Lack of any measured data and facts
Project Health (Red/Amber/Green) is debatable
and subjective
Relies on measured values derived from triple
constraints – Scope, Time and Cost
Project Status reported based on defined matrix
Unambiguous, No Assumptions
Easily understandable by Stakeholders
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4. An objective method to measure project progress based on triple
constraints (Scope, Time, Cost)
EV measurements helps to determine if a project is on track
EV is an indicator of current project performance
Provides early warnings and trends on any cost, schedule over runs
Earned Value CharacteristicsEarned Value CharacteristicsEarned Value CharacteristicsEarned Value CharacteristicsEarned Value CharacteristicsEarned Value CharacteristicsEarned Value CharacteristicsEarned Value Characteristics
Earned value indicates how much of “value” you have “earned” on
the project at any given point of time.
Helps determine variance against Planned Value (PV).
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5. Let us consider the following example to understand the
concepts better
An ERP implementation project for ABC company is estimated
to cost $500,000 with an estimated duration of 40 weeks.At
the end of 10 weeks the project is 20% complete withthe end of 10 weeks the project is 20% complete with
$150,000 being already spent on the project.
BAC =500,000,AC = 150,000
PV = 10/40*500,000 = 125,000
EV = 20/100*500,000 = 100,000
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7. BAC = 500,000BAC = 500,000BAC = 500,000BAC = 500,000 PV = 125,000PV = 125,000PV = 125,000PV = 125,000 EV = 100,000EV = 100,000EV = 100,000EV = 100,000 AC = 150,000AC = 150,000AC = 150,000AC = 150,000
MetricMetricMetricMetric FormulaFormulaFormulaFormula ValueValueValueValue AnalysisAnalysisAnalysisAnalysis
CV EV-AC -50,000 This indicates $50,000 has already been
additionally spent in excess of the project worth of
work up-to this point
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SV EV-PV -25000 The negative value indicates the project is lagging
behind its planned schedule.
CPI EV/AC 0.67 A value less than 1 indicates over utilization of
funds against the actual work. In this case the
project is earning $0.67 worth value for every $
spent, not a good sign.
SPI EV/PV 0.80 A value less than 1 indicates that the project is
behind planned schedule and progress has only
been at 80% .
9. MetricMetricMetricMetric FormulaFormulaFormulaFormula ValueValueValueValue AnalysisAnalysisAnalysisAnalysis
EAC BAC/CPI 746,268.65 The revised estimates now for project
completion based on current performance is
$746,268.65 as against planned $500,000.
BAC = 500,000BAC = 500,000BAC = 500,000BAC = 500,000 PV = 125,000PV = 125,000PV = 125,000PV = 125,000 EV = 100,000EV = 100,000EV = 100,000EV = 100,000 AC = 150,000AC = 150,000AC = 150,000AC = 150,000
CV = -50,000 SV = -25,000 CPI = 0.67 SPI = 0.80
ETC EAC-AC 596,268.65 The project would now require $596,268.65
to complete
VAC BAC-EAC -246,268.65 There is an additional $246,268.65 required
to complete the project compared to original
estimates
TCPI (BAC-EV)/(BAC-AC)
(WORK LEFT TO
DO)/ MONEY
REMAINING)
1.14 The project need to now perform at 1.14 times
in order to stay within the estimated budget
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10. Terminology Description Formula
Budget At CompletionBudget At CompletionBudget At CompletionBudget At Completion
(BAC)(BAC)(BAC)(BAC)
The original estimated (planned) project CostThe original estimated (planned) project CostThe original estimated (planned) project CostThe original estimated (planned) project Cost NoneNoneNoneNone
Planned Value (PV)Planned Value (PV)Planned Value (PV)Planned Value (PV) Indicates amount of work which “SHOULD haveIndicates amount of work which “SHOULD haveIndicates amount of work which “SHOULD haveIndicates amount of work which “SHOULD have
been completed” or “Authorized work forbeen completed” or “Authorized work forbeen completed” or “Authorized work forbeen completed” or “Authorized work for
completion” as per plan at any pointcompletion” as per plan at any pointcompletion” as per plan at any pointcompletion” as per plan at any point
PV=Planned %PV=Planned %PV=Planned %PV=Planned %
complete X BACcomplete X BACcomplete X BACcomplete X BAC
Earned Value (EV)Earned Value (EV)Earned Value (EV)Earned Value (EV) Actual work that is accomplished at any pointActual work that is accomplished at any pointActual work that is accomplished at any pointActual work that is accomplished at any point EV= Actual %EV= Actual %EV= Actual %EV= Actual %
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Earned Value (EV)Earned Value (EV)Earned Value (EV)Earned Value (EV) Actual work that is accomplished at any pointActual work that is accomplished at any pointActual work that is accomplished at any pointActual work that is accomplished at any point EV= Actual %EV= Actual %EV= Actual %EV= Actual %
complete X BACcomplete X BACcomplete X BACcomplete X BAC
Actual Cost (AC)Actual Cost (AC)Actual Cost (AC)Actual Cost (AC) The actual money spent at any point of timeThe actual money spent at any point of timeThe actual money spent at any point of timeThe actual money spent at any point of time AC= CumulativeAC= CumulativeAC= CumulativeAC= Cumulative
money spent till datemoney spent till datemoney spent till datemoney spent till date
Cost Variance (CV)Cost Variance (CV)Cost Variance (CV)Cost Variance (CV) The difference between howThe difference between howThe difference between howThe difference between how much was actuallymuch was actuallymuch was actuallymuch was actually
EarnedEarnedEarnedEarned and how muchand how muchand how muchand how much was awas awas awas actually spentctually spentctually spentctually spent
CV=EVCV=EVCV=EVCV=EV----ACACACAC
ScheduleScheduleScheduleSchedule Variance (SV)Variance (SV)Variance (SV)Variance (SV) The difference between plannedThe difference between plannedThe difference between plannedThe difference between planned schedule Vsschedule Vsschedule Vsschedule Vs
Actual ScheduleActual ScheduleActual ScheduleActual Schedule
SV = EVSV = EVSV = EVSV = EV----PVPVPVPV
11. TerminologyTerminologyTerminologyTerminology DescriptionDescriptionDescriptionDescription FormulaFormulaFormulaFormula
CostCostCostCost Performance IndexPerformance IndexPerformance IndexPerformance Index
(CPI)(CPI)(CPI)(CPI)
Indicates the projectIndicates the projectIndicates the projectIndicates the project performance for every $performance for every $performance for every $performance for every $
spentspentspentspent
CPCPCPCPI = EV / ACI = EV / ACI = EV / ACI = EV / AC
Schedule PerformanceSchedule PerformanceSchedule PerformanceSchedule Performance
Index (SPI)Index (SPI)Index (SPI)Index (SPI)
Indicate actualIndicate actualIndicate actualIndicate actual schedule progress of theschedule progress of theschedule progress of theschedule progress of the
against the planned scheduleagainst the planned scheduleagainst the planned scheduleagainst the planned schedule
SPI = EV / PVSPI = EV / PVSPI = EV / PVSPI = EV / PV
Estimate At CompletionEstimate At CompletionEstimate At CompletionEstimate At Completion
(EAC)(EAC)(EAC)(EAC)
TheTheTheThe revised project Budget for completionrevised project Budget for completionrevised project Budget for completionrevised project Budget for completion
based on current performance indicatorsbased on current performance indicatorsbased on current performance indicatorsbased on current performance indicators
EAC = BAC /EAC = BAC /EAC = BAC /EAC = BAC /
Cumulative CPICumulative CPICumulative CPICumulative CPI
Estimate To CompleteEstimate To CompleteEstimate To CompleteEstimate To Complete
(ETC)(ETC)(ETC)(ETC)
How much more (cost)How much more (cost)How much more (cost)How much more (cost) would be needed towould be needed towould be needed towould be needed to
complete the project based on currentcomplete the project based on currentcomplete the project based on currentcomplete the project based on current
performance indicatorsperformance indicatorsperformance indicatorsperformance indicators
ETC = EACETC = EACETC = EACETC = EAC –––– ACACACAC
Variance At CompletionVariance At CompletionVariance At CompletionVariance At Completion
(VAC)(VAC)(VAC)(VAC)
TheTheTheThe difference between the budgeted costdifference between the budgeted costdifference between the budgeted costdifference between the budgeted cost
and revised estimates based on currentand revised estimates based on currentand revised estimates based on currentand revised estimates based on current
performance indicatorsperformance indicatorsperformance indicatorsperformance indicators
VAC = BACVAC = BACVAC = BACVAC = BAC –––– EACEACEACEAC
ToToToTo----CompleteCompleteCompleteComplete
Performance Index (TCPI)Performance Index (TCPI)Performance Index (TCPI)Performance Index (TCPI)
ProjectProjectProjectProject Performance required to be achievedPerformance required to be achievedPerformance required to be achievedPerformance required to be achieved
in order to stay within the original budgetin order to stay within the original budgetin order to stay within the original budgetin order to stay within the original budget
using the remaining fundsusing the remaining fundsusing the remaining fundsusing the remaining funds
TCPI = (BACTCPI = (BACTCPI = (BACTCPI = (BAC----EV) /EV) /EV) /EV) /
(BAC(BAC(BAC(BAC----AC)AC)AC)AC)
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12. Variance Value (SV, CV, VAC) :Variance Value (SV, CV, VAC) :Variance Value (SV, CV, VAC) :Variance Value (SV, CV, VAC) : If Negative, it is below planned performance,
If Positive, it is above planned performance
If Zero, it is exactly meeting the planned
performance
Performance Index (CPI,SPI):Performance Index (CPI,SPI):Performance Index (CPI,SPI):Performance Index (CPI,SPI): If the Value is less than 1, it is below planned
performance
If the Value is more than 1, it is above
planned performance
ProPM Academy - 2011
"PMP® Exam Prep Course" 12
planned performance
If the Value is equal to 1, it is exactly meeting
the planned performance
TCPI:TCPI:TCPI:TCPI: If the Value is Less than 1, it is above
planned performance
If the Value is more than 1, it is below
planned performance
If the Value is Equal to 1, it is exactly meeting
the planned performance
