The document provides an overview of earned value analysis (EVA) training. It defines EVA as a project management technique for monitoring cost and schedule performance by comparing actual and budgeted resources. The training will cover what EVA is, why it is used, how EVA metrics like cost variance, schedule variance and estimate at completion are calculated, and examples of how EVA is applied. Attendees will learn how EVA can identify if a project is over budget or ahead of schedule so corrective actions can be taken.
This document provides an overview of earned value analysis for project management. It defines key earned value terms and discusses how earned value can be used to enhance project performance by providing early awareness of potential issues. The document outlines an agenda for an earned value analysis training, including introducing earned value concepts and metrics, comparing forecasting methods, defining terminology, and providing a calculation example. It emphasizes that successful earned value implementation requires establishing a work breakdown structure, cost and schedule baselines, and processes for tracking progress and costs.
Earned value analysis is a project monitoring technique that compares the planned value, earned value, and actual cost of a project. Planned value refers to the budgeted cost of planned work, earned value is the budgeted cost of work actually completed, and actual cost is the real cost of completed work. Variances between these three values can identify if a project is over or under budget and ahead or behind schedule. Tracking variances over time allows project managers to determine the health of a project and take corrective actions if needed.
Earned value analysis is a technique that compares planned, earned, and actual values to analyze project performance. It uses planned value (budget), earned value (work completed), and actual costs to calculate variances and performance indexes. Variances and indexes indicate whether a project is on budget and on schedule. Earned value analysis allows project managers to forecast final costs and duration based on current performance.
This document provides an overview of earned value management (EVM) including its basic elements, performance analysis and forecasting, and key practices. EVM is an effective project management tool that illuminates the current status of a project compared to what was planned. It involves measuring, analyzing, and reporting on the scope, schedule, and cost of work performed. Critical data elements include planned value (budget), earned value (work completed), and actual cost. Variance, performance indices, and estimates are used to analyze schedule and cost performance and forecast project completion.
1) Earned value analysis is a technique used to measure project performance and forecast completion costs and dates. It compares planned, actual, and earned values.
2) The document describes a case study of applying earned value analysis to a bridge construction project in India. It involved constructing two flyovers over five phases with a budget of 25 crores.
3) Earned value analysis of the project schedule identified that the project was behind schedule, so activities were crashed to shorten the duration. When actual costs were higher than planned, activities were smoothed to reduce costs by extending durations and optimizing resources.
project control using earned value analysis - Part 01 waleed hamdy
Project control using earned value analysis - Part 01
Mission of the projects control division
Why the earned value management?
Establishment of the Performance Measurement Baseline
EVM Analysis & Forecasting
Earned value management compares planned work with actual work accomplished to measure project performance. It calculates schedule variance by comparing earned value to planned work, and cost variance by comparing earned value to actual costs. Positive variances indicate the project is ahead or under budget, while negative variances mean it is behind or over budget. Indices like SPI and CPI also measure performance, with values over 1 meaning ahead or under budget and values under 1 meaning behind or over.
This document provides an overview of earned value analysis for project management. It defines key earned value terms and discusses how earned value can be used to enhance project performance by providing early awareness of potential issues. The document outlines an agenda for an earned value analysis training, including introducing earned value concepts and metrics, comparing forecasting methods, defining terminology, and providing a calculation example. It emphasizes that successful earned value implementation requires establishing a work breakdown structure, cost and schedule baselines, and processes for tracking progress and costs.
Earned value analysis is a project monitoring technique that compares the planned value, earned value, and actual cost of a project. Planned value refers to the budgeted cost of planned work, earned value is the budgeted cost of work actually completed, and actual cost is the real cost of completed work. Variances between these three values can identify if a project is over or under budget and ahead or behind schedule. Tracking variances over time allows project managers to determine the health of a project and take corrective actions if needed.
Earned value analysis is a technique that compares planned, earned, and actual values to analyze project performance. It uses planned value (budget), earned value (work completed), and actual costs to calculate variances and performance indexes. Variances and indexes indicate whether a project is on budget and on schedule. Earned value analysis allows project managers to forecast final costs and duration based on current performance.
This document provides an overview of earned value management (EVM) including its basic elements, performance analysis and forecasting, and key practices. EVM is an effective project management tool that illuminates the current status of a project compared to what was planned. It involves measuring, analyzing, and reporting on the scope, schedule, and cost of work performed. Critical data elements include planned value (budget), earned value (work completed), and actual cost. Variance, performance indices, and estimates are used to analyze schedule and cost performance and forecast project completion.
1) Earned value analysis is a technique used to measure project performance and forecast completion costs and dates. It compares planned, actual, and earned values.
2) The document describes a case study of applying earned value analysis to a bridge construction project in India. It involved constructing two flyovers over five phases with a budget of 25 crores.
3) Earned value analysis of the project schedule identified that the project was behind schedule, so activities were crashed to shorten the duration. When actual costs were higher than planned, activities were smoothed to reduce costs by extending durations and optimizing resources.
project control using earned value analysis - Part 01 waleed hamdy
Project control using earned value analysis - Part 01
Mission of the projects control division
Why the earned value management?
Establishment of the Performance Measurement Baseline
EVM Analysis & Forecasting
Earned value management compares planned work with actual work accomplished to measure project performance. It calculates schedule variance by comparing earned value to planned work, and cost variance by comparing earned value to actual costs. Positive variances indicate the project is ahead or under budget, while negative variances mean it is behind or over budget. Indices like SPI and CPI also measure performance, with values over 1 meaning ahead or under budget and values under 1 meaning behind or over.
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)
Earned Value Management is an important topic for PMP and PMI ACP Exam. Since the questions related with Earned Value Management are based on formulas so with practice, these concepts can be mastered and these questions can be answered confidently in the exam.
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.
Earned value analysis is a technique for measuring project performance and progress. It involves establishing a performance measurement baseline at the start of the project. Actual costs and schedule progress are measured against the baseline to calculate cost and schedule variances. These variances help identify issues early and estimate future project costs and completion dates. For example, an analysis of a robot production project found it was over budget by $150,000 and behind schedule by 25% after completing 3 of 4 planned robots. The estimated total cost was $600,000 if performance did not improve.
This document provides an overview of earned value management (EVM) with the following key points:
1. EVM is a project control process that facilitates integrating project scope, time, and cost objectives by comparing the planned value, actual cost, and earned value.
2. EVM improves project predictability, provides early warnings of problems, and objectively assesses value delivered versus costs through structured planning and performance measurement.
3. EVM uses variances, performance indices, and forecasting to monitor project performance and status in terms of schedule, budget, and estimates to completion. Positive variances and indices above 1 indicate favorable performance while negative or below 1 need corrective action.
This document introduces earned value analysis (EVA), a project management technique that integrates scope, schedule, and cost to measure performance. It defines key EVA terms like budgeted cost of work performed, actual cost, earned value, and planned value. Metrics like cost variance, schedule variance, cost performance index, and estimate at completion are also explained. An example project is used to demonstrate how to calculate these metrics. The document proposes implementing EVA for ATCO projects by developing a module in their EIS system to track EVA parameters and metrics on a monthly basis. A plan is outlined to get feedback, train users, and start the new EVA process.
The document describes a case study example of how earned value management (EVM) can be used to effectively monitor and manage a project. In the case, a project was given a budget of Rs. 1 million to produce 10 units over 18 months. After 3 months, a status report showed the team was slightly behind schedule but on budget. However, by employing EVM techniques and measuring planned value, earned value, and actual costs, it was revealed that the project was significantly over budget and behind schedule. This allowed corrective actions to be taken early to get the project back on track.
This document discusses project control processes and earned value management. It provides examples of how to build a project baseline, record actual costs and progress, calculate earned value, and use earned value metrics like CPI, SPI, ETC and EAC to estimate project completion costs and schedule. Key aspects of earned value covered include defining the planned value, earned value, actual costs, variances, and using ratios like CPI and SPI to forecast project performance and completion.
The document discusses earned value management (EVM), which combines measurements of project scope, schedule, and resources to assess performance and progress. EVM integrates the scope, cost, and schedule baselines to form a performance baseline for evaluation. Key EVM terms are defined, including planned value, actual cost, earned value, and budget at completion. Variances, performance indices, estimates to complete, and estimates at completion are calculated using EVM data. Corrective actions for cost performance issues may include adjusting resources, evaluating scope creep, and ensuring prompt issue resolution.
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 gentle introduction to earned value management systems (neutral)Glen Alleman
Earned value management systems (EVMS) provide a framework for project managers to track schedule and budget performance. Key elements of EVMS include defining the scope of work, establishing a time-phased budget baseline, and periodically calculating metrics like cost and schedule variance to forecast project outcomes. While full ANSI/EIA-748 compliance requires addressing 32 criteria, a simpler approach focuses on 10 criteria like identifying tasks, establishing budgets and schedules, and recording costs to generate regular performance metrics. EVMS gives project managers visibility into whether work is on track and whether budgets need adjustment.
Earned Value Management - Quantifiable project metrics for learning the current state of a project.
Examples and Value Definitions for EVM in relation to project management.
https://agile-mercurial.com
https://twentyfirstcenturyworkforce.com/
Earned value management is a project management technique for measuring project performance and progress. It has the ability to combine measurements of the project management triangle:
Scope
Schedule, and
Costs
In a single integrated system, Earned Value Management is able to provide accurate forecasts of project performance problems, which is an important contribution for project management.
Early EVM research showed that the areas of planning and control are significantly impacted by its use; and similarly, using the methodology improves both scope definition as well as the analysis of overall project performance. More recent research studies have shown that the principles of EVM are positive predictors of project success.[1] Popularity of EVM has grown in recent years beyond government contracting, in which sector its importance continues to rise[2] (e.g., recent new DFARS rules[3]), in part because EVM can also surface in and help substantiate contract disputes.[4]
Essential features of any EVM implementation include
a project plan that identifies work to be accomplished,
a valuation of planned work, called Planned Value (PV) or Budgeted Cost of Work Scheduled (BCWS), and
pre-defined “earning rules” (also called metrics) to quantify the accomplishment of work, called Earned Value (EV) or Budgeted Cost of Work Performed (BCWP).
EVM implementations for large or complex projects include many more features, such as indicators and forecasts of cost performance (over budget or under budget) and schedule performance (behind schedule or ahead of schedule). However, the most basic requirement of an EVM system is that it quantifies progress using PV and EV
The document provides an overview of earned value management (EVM) as a tool for measuring employee and project performance. It defines key EVM concepts like budgeted cost of work scheduled, budgeted cost of work performed, and actual cost of work performed. The document uses examples to demonstrate how to calculate EVM metrics like schedule variance, cost variance, schedule performance index, and cost performance index to assess if a project is on budget and on schedule. It highlights how EVM provides a more integrated approach than traditional performance measurement methods.
This document provides an overview of earned value management (EVM) concepts in 5 easy pieces:
1. Define planned value using a credible schedule
2. Measure physical percent complete for work periods
3. Calculate earned value as planned value multiplied by percent complete
4. Use earned value variables to calculate performance indices
5. Take corrective actions based on performance index analyses
The document defines key terms and formulas used in earned value management. It explains that earned value management compares the planned value, actual cost, and earned value to calculate schedule variance, cost variance, schedule performance index, cost performance index, estimate at completion, estimate to completion, and variance at completion. These metrics help project managers compare the planned project progress and costs to the actual work completed and costs incurred to date. The document provides formulas for calculating each metric and identifies where the source data can be found, such as the project management tool, project schedule, or earned value worksheet.
Track Project Performance - Earned Value ManagementBaroness PM
Earned Value Management (EVM) is a project management methodology that tracks project performance and forecasts future performance. It integrates the scope baseline, schedule baseline, and cost to provide performance measurements. EVM uses three building blocks - planned value, earned value, and actual cost - to calculate variances and performance indexes that measure project schedule and cost. Variance analysis and forecasting allow project managers to monitor current performance and predict future outcomes.
This document discusses integrating risk management with earned value management. It provides several key steps:
1. Physically connect risk management tasks to the integrated master schedule and work breakdown structure to ensure risks are planned and tracked.
2. Start by identifying risks and owners, then analyze probability and impact to determine mitigation owners and plans.
3. Track risk status using the same processes as earned value, such as percent complete. Analyze impacts and make control decisions based on integrated data.
The goal is to ensure risks are planned like any other task and progress is measured alongside cost and schedule performance to aid management decisions. Monte Carlo analysis can also model schedule risk using probability distributions.
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)
Earned Value Management is an important topic for PMP and PMI ACP Exam. Since the questions related with Earned Value Management are based on formulas so with practice, these concepts can be mastered and these questions can be answered confidently in the exam.
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.
Earned value analysis is a technique for measuring project performance and progress. It involves establishing a performance measurement baseline at the start of the project. Actual costs and schedule progress are measured against the baseline to calculate cost and schedule variances. These variances help identify issues early and estimate future project costs and completion dates. For example, an analysis of a robot production project found it was over budget by $150,000 and behind schedule by 25% after completing 3 of 4 planned robots. The estimated total cost was $600,000 if performance did not improve.
This document provides an overview of earned value management (EVM) with the following key points:
1. EVM is a project control process that facilitates integrating project scope, time, and cost objectives by comparing the planned value, actual cost, and earned value.
2. EVM improves project predictability, provides early warnings of problems, and objectively assesses value delivered versus costs through structured planning and performance measurement.
3. EVM uses variances, performance indices, and forecasting to monitor project performance and status in terms of schedule, budget, and estimates to completion. Positive variances and indices above 1 indicate favorable performance while negative or below 1 need corrective action.
This document introduces earned value analysis (EVA), a project management technique that integrates scope, schedule, and cost to measure performance. It defines key EVA terms like budgeted cost of work performed, actual cost, earned value, and planned value. Metrics like cost variance, schedule variance, cost performance index, and estimate at completion are also explained. An example project is used to demonstrate how to calculate these metrics. The document proposes implementing EVA for ATCO projects by developing a module in their EIS system to track EVA parameters and metrics on a monthly basis. A plan is outlined to get feedback, train users, and start the new EVA process.
The document describes a case study example of how earned value management (EVM) can be used to effectively monitor and manage a project. In the case, a project was given a budget of Rs. 1 million to produce 10 units over 18 months. After 3 months, a status report showed the team was slightly behind schedule but on budget. However, by employing EVM techniques and measuring planned value, earned value, and actual costs, it was revealed that the project was significantly over budget and behind schedule. This allowed corrective actions to be taken early to get the project back on track.
This document discusses project control processes and earned value management. It provides examples of how to build a project baseline, record actual costs and progress, calculate earned value, and use earned value metrics like CPI, SPI, ETC and EAC to estimate project completion costs and schedule. Key aspects of earned value covered include defining the planned value, earned value, actual costs, variances, and using ratios like CPI and SPI to forecast project performance and completion.
The document discusses earned value management (EVM), which combines measurements of project scope, schedule, and resources to assess performance and progress. EVM integrates the scope, cost, and schedule baselines to form a performance baseline for evaluation. Key EVM terms are defined, including planned value, actual cost, earned value, and budget at completion. Variances, performance indices, estimates to complete, and estimates at completion are calculated using EVM data. Corrective actions for cost performance issues may include adjusting resources, evaluating scope creep, and ensuring prompt issue resolution.
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 gentle introduction to earned value management systems (neutral)Glen Alleman
Earned value management systems (EVMS) provide a framework for project managers to track schedule and budget performance. Key elements of EVMS include defining the scope of work, establishing a time-phased budget baseline, and periodically calculating metrics like cost and schedule variance to forecast project outcomes. While full ANSI/EIA-748 compliance requires addressing 32 criteria, a simpler approach focuses on 10 criteria like identifying tasks, establishing budgets and schedules, and recording costs to generate regular performance metrics. EVMS gives project managers visibility into whether work is on track and whether budgets need adjustment.
Earned Value Management - Quantifiable project metrics for learning the current state of a project.
Examples and Value Definitions for EVM in relation to project management.
https://agile-mercurial.com
https://twentyfirstcenturyworkforce.com/
Earned value management is a project management technique for measuring project performance and progress. It has the ability to combine measurements of the project management triangle:
Scope
Schedule, and
Costs
In a single integrated system, Earned Value Management is able to provide accurate forecasts of project performance problems, which is an important contribution for project management.
Early EVM research showed that the areas of planning and control are significantly impacted by its use; and similarly, using the methodology improves both scope definition as well as the analysis of overall project performance. More recent research studies have shown that the principles of EVM are positive predictors of project success.[1] Popularity of EVM has grown in recent years beyond government contracting, in which sector its importance continues to rise[2] (e.g., recent new DFARS rules[3]), in part because EVM can also surface in and help substantiate contract disputes.[4]
Essential features of any EVM implementation include
a project plan that identifies work to be accomplished,
a valuation of planned work, called Planned Value (PV) or Budgeted Cost of Work Scheduled (BCWS), and
pre-defined “earning rules” (also called metrics) to quantify the accomplishment of work, called Earned Value (EV) or Budgeted Cost of Work Performed (BCWP).
EVM implementations for large or complex projects include many more features, such as indicators and forecasts of cost performance (over budget or under budget) and schedule performance (behind schedule or ahead of schedule). However, the most basic requirement of an EVM system is that it quantifies progress using PV and EV
The document provides an overview of earned value management (EVM) as a tool for measuring employee and project performance. It defines key EVM concepts like budgeted cost of work scheduled, budgeted cost of work performed, and actual cost of work performed. The document uses examples to demonstrate how to calculate EVM metrics like schedule variance, cost variance, schedule performance index, and cost performance index to assess if a project is on budget and on schedule. It highlights how EVM provides a more integrated approach than traditional performance measurement methods.
This document provides an overview of earned value management (EVM) concepts in 5 easy pieces:
1. Define planned value using a credible schedule
2. Measure physical percent complete for work periods
3. Calculate earned value as planned value multiplied by percent complete
4. Use earned value variables to calculate performance indices
5. Take corrective actions based on performance index analyses
The document defines key terms and formulas used in earned value management. It explains that earned value management compares the planned value, actual cost, and earned value to calculate schedule variance, cost variance, schedule performance index, cost performance index, estimate at completion, estimate to completion, and variance at completion. These metrics help project managers compare the planned project progress and costs to the actual work completed and costs incurred to date. The document provides formulas for calculating each metric and identifies where the source data can be found, such as the project management tool, project schedule, or earned value worksheet.
Track Project Performance - Earned Value ManagementBaroness PM
Earned Value Management (EVM) is a project management methodology that tracks project performance and forecasts future performance. It integrates the scope baseline, schedule baseline, and cost to provide performance measurements. EVM uses three building blocks - planned value, earned value, and actual cost - to calculate variances and performance indexes that measure project schedule and cost. Variance analysis and forecasting allow project managers to monitor current performance and predict future outcomes.
This document discusses integrating risk management with earned value management. It provides several key steps:
1. Physically connect risk management tasks to the integrated master schedule and work breakdown structure to ensure risks are planned and tracked.
2. Start by identifying risks and owners, then analyze probability and impact to determine mitigation owners and plans.
3. Track risk status using the same processes as earned value, such as percent complete. Analyze impacts and make control decisions based on integrated data.
The goal is to ensure risks are planned like any other task and progress is measured alongside cost and schedule performance to aid management decisions. Monte Carlo analysis can also model schedule risk using probability distributions.
This presentation is from the free online course, which i delivered in February 2013.
*If you downloaded before the 8th August, please download again the correct file* -Feel free to download and share. -Denise
Project Controls Expo 13th Nov 2013 - "From Cost Plan To Bid Evaluation To Co...Project Controls Expo
The Cost Plan - Work Breakdown Structure
What is a Cost Plan ? Cost Plan is the Estimate for the project based on the Scope of Work Measured Trade Elements
The Cost Plan has a Cost Work Breakdown Structure (CWBS) To Mirror The Project Scope of Work.
Typical CWBS for an Industrial/Infrastructure Project:
Level 1 - The Project
Level 2 - Phase/Stage - Separable Portions
Level 3 - Area /Facility – Construction Zones
Level 4 - Resource - Trade Based Activities
Level 5 - Resource Trade Based Elements - Units of Measure and Pricing
This webinar was presented by Stephen Jones, Chair of the APM Planning, Monitoring and Control SIG and Simon Taylor, Vice-Chair of the same SIG on Thursday 11th December 2014.
Earned value management is a project control process based on a structured approach to planning, cost collection and performance measurement.
Earned value helps us manage a project by:
providing data to enable objective measurement of project status;
providing a basis for estimating final cost;
predicting when the project will be complete;
supporting the effective management of resources;
providing a means of managing and controlling change.
Earned value provides information which enables effective decision making by knowing:
what has been achieved of the plan;
what it has cost to achieve the planned work;
if the work achieved is costing more or less than was planned;
if the project is ahead of or behind the planned schedule.
Good planning leads to good project execution and good management information.
إدارة القيمة المكتسبة مفيدة ومخادعة في التحكم في المشروعات
فيديو دورة الأساسيات: http://prof.planner.teachable.com/p/evm-basics/
دورة المستوى المتقدم: http://www.slideshare.net/MohamedMaged8/contracts-classification
للمزيد: https://www.facebook.com/groups/prof.cost.engineers/
Earned value management with Examples | Control Cost | PMBOK | PMPJustAcademy
Earned Value Management topic from Control Cost – Cost Management
What is Earned Value Management
Explained EVM with examples
Cost Variances (CV )
Cost Performance Index(CPI)
Schedule Variances(SV)
Schedule Performance Index(SPI)
Cost Overrun and Project Slip
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 Hyderbad,
PMP Training in Chennai,PMP Training in Canada
Earning Value from Earned Value ManagementGlen Alleman
This document discusses how to create value from earned value management (EVM) using both bottom-up and top-down approaches. It emphasizes that EVM metrics like SPI and CPI do not capture the underlying statistical nature of projects, and that modeling this requires stochastic modeling and Monte Carlo simulation. It also stresses that creating value from EVM requires relating budgets to work, measuring progress objectively, and relating cost, schedule, and technical performance.
A simple example of Earned Value Management (EVM) in actionPlanisware
The team was tasked with planting 600 trees over 5 days but encountered difficulties on the first day. They planted 70 trees which was 30 less than planned. Costs were higher than expected at $350 due to needing a machine to remove stones. Earned value was $203 but the budgeted cost was $290, resulting in negative schedule and cost variances. If performance does not improve, the project will exceed its budget and deadline. The key EVM metrics - schedule variance, cost variance, estimate at completion and budget at completion - were calculated to assess progress and risks to the project.
Project monitoring refers to tracking project metrics like team performance, task duration, and identifying potential problems to ensure a project is on schedule, within budget, and meets deadlines. It clarifies objectives, links activities to objectives, sets targets, reports progress, and alerts management to issues. Earned value analysis is a project monitoring tool that compares planned, actual, and earned values to measure performance and forecast completion. It involves gathering work information, calculating schedule and cost variances and performance indices, and reporting on whether tasks are ahead or behind schedule and over or under budget.
Earned value analysis (EVA) is a project management technique for measuring project performance and progress. It objectively compares the planned cost and schedule of a project to its actual cost and progress by integrating measurements of scope, schedule and cost. EVA allows project managers to forecast a project's final cost, completion date and variances in a timely manner to identify risks and take corrective actions if needed. Project managers use EVA by setting a performance measurement baseline, measuring actual work progress and costs, and calculating variances to analyze schedule and cost performance.
#Measuring Project Performance - Earned Value Management System# By SN PanigrahiSN Panigrahi, PMP
#Measuring Project Performance Earned Value Management System# By SN Panigrahi,
Essenpee Business Solutions,
Earned Value Analysis (EVA) ,
Budget At Completion (BAC),
Planned Value (PV),
Earned Value (EV),
Actual Cost (AC),
Scheduled Variance (SV),
Cost Variance (CV),
CPI, SPI, EAC, ETC, TCPI, VAC
Project monitoring refers to tracking project metrics like team performance, task duration, and identifying potential problems to ensure a project is on schedule, budget, and scope. It clarifies objectives, links activities to objectives, reports progress to management, and alerts managers to issues. Project monitoring assesses results, improves planning, promotes learning, ensures accountability, and answers questions about task progress, unforeseen consequences, team performance, needed changes, and impact on results. Earned value analysis is a monitoring tool that compares planned, actual, and earned values to measure progress and performance through metrics like schedule and cost variances, and indexes. Regular reporting keeps stakeholders informed of project status.
In defining a project accounting system for an organisation, the needs of both project management and the finance function have to be met. However their needs differ. By combining project and programme management techniques with financial and management accounting methods, a more holistic approach to capturing metrics is possible. Analysis of this will enable focused effort to improve project efficiency and effectiveness.
This document discusses project cost management principles and processes. It explains that IT projects often experience cost overruns and provides examples. The key processes for managing costs are estimating costs, determining budgets, and controlling costs. Estimating involves developing cost approximations, while determining budgets allocates the estimate to work items to establish a baseline. Controlling costs involves monitoring performance against the baseline and approving changes. Earned value management is presented as a technique to integrate scope, time and cost data to track project performance.
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 ...
This document discusses cost management in project planning and development. It defines cost management as estimating, budgeting, and controlling costs throughout a project's life cycle to keep expenses within the approved budget. It explains that cost management is vital for effective project planning and prevention of overruns. The types of costs include direct, indirect, labor, materials, equipment, and expenses. Key steps in cost management are project resource planning, cost estimation, cost budgeting, cost control, and using earned value management to measure performance. Formulas are provided to calculate cost variance, cost performance index, and schedule performance index. An example calculation is also included.
The document discusses three key processes for managing project costs: cost estimating, cost budgeting, and cost control. It provides details on cost estimation methods like analogous estimating. Cost budgeting involves creating a cost baseline budget. Cost control tools like earned value management measure how well a project is adhering to the baseline budget through metrics like cost and schedule variance.
The document discusses three key processes for managing project costs: cost estimating, cost budgeting, and cost control. It provides details on cost estimation methods like analogous estimating and three-point estimating. Cost budgeting involves setting a cost baseline budget. Cost control tools like earned value management measure planned vs. actual costs and schedules to identify variances enabling corrective actions. Earned value charts and calculations like CPI and SPI are used to forecast final costs and identify if projects will finish over or under budget.
This document provides an overview of project cost management processes including developing cost baselines, earned value management, and variance analysis. It defines key terms like planned value, earned value, actual costs, cost variance, and schedule variance. Cost baselines include time-phased budgets for planned costs. Earned value management compares earned value to planned value and actual costs to calculate cost and schedule performance using indices like CPI, SPI, and variance. Variance analysis is used to track project performance and forecast final costs.
This document provides an overview of project cost management. It discusses estimating costs, determining budgets, and controlling costs. Key aspects include estimating methods like analogous, bottom-up, and parametric; determining a cost baseline; using earned value formulas like CPI, SPI, ETC, and EAC to track performance; and controlling costs through variance analysis and forecasting. The goal is planning, estimating, budgeting, and controlling costs to complete projects within approved budgets.
This document provides information on Earned Value Management (EVM) and Social Cost Benefit Analysis (SCBA). It defines EVM as a technique that uses an integrated schedule and budget to measure project performance. Key terms like Earned Value, Planned Value, and Actual Cost are defined. It also outlines the benefits of EVM and calculations used, including schedule and cost variances. SCBA is defined as analyzing the direct/indirect economic and social impacts of a project on a society. Objectives and criteria for SCBA are described, including establishing the net social benefit and using a social discount rate.
This document discusses project monitoring and control. It defines monitoring as tracking key parameters like cost, schedule and risks throughout the project duration. Control is defined as comparing actual performance to the baseline plan and taking corrective actions. The document outlines the project control process and tools used like tracking Gantt charts and control charts. It also discusses topics like baselines, earned value analysis, updating estimates and using software like MS Project for project execution and control.
Project Mangement - overview of the Cost Management knowledge area within project management. Describes the 4 processes within Project Cost Management and the process groups impacted.
Blog: https://agile-mercurial.com
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This document provides information on key project management formulas and concepts for the PMP exam. It covers topics like three point estimation, earned value management, forecasting techniques including estimate at completion, estimate to complete and to-complete performance index. It also defines formulas for net present value, return on investment, future value, present value etc. The document uses examples and visuals to explain concepts in an easy to understand manner to help learners pass the PMP exam.
This document provides an overview of project cost management. It defines key processes for planning, estimating, determining budgets, and controlling costs on a project. Section 7.1 discusses planning cost management by establishing policies and documentation for managing project costs. Section 7.2 covers estimating costs by developing approximations for completing project activities. Section 7.3 involves determining the project budget by aggregating activity cost estimates. Finally, section 7.4 is about controlling costs by monitoring project spending and updating the cost baseline.
The document discusses budget management and earned value management. It provides information on three methods of project cost estimating, developing a cost baseline, and controlling costs. It also describes key aspects of earned value management including planned value, actual costs, earned value, calculating variances, and using earned value to estimate project completion costs. The document includes an example of tracking a project's schedule and cost performance using earned value metrics.
The document discusses budget management and earned value management. It provides information on three methods of project cost estimating, developing a cost baseline, and controlling costs. It also describes key aspects of earned value management including planned value, earned value, actual costs, calculating variances, and using variances to estimate project completion costs and identify schedule and cost performance issues. The document uses an example project to demonstrate how to calculate and interpret earned value metrics.
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buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
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B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
2. 2
Earned Value Analysis Training
Contents
Context
What is EVA
Why Use It?
How will we use it
EVA examples
EVA and MSP
What next?
Who to contact
GPA – Confidential
4. 4
Earned Value Analysis Training
GPA – Confidential
PM
Technique
• Earned Value Analysis (EVA) is a
project management technique for
monitoring the cost and schedule
performance of projects
5. 5
Earned Value Analysis Training
GPA – Confidential
PM
Technique
✔ PMI
• Earned Value Analysis (EVA) is a
project management technique for
monitoring the cost and schedule
performance of projects
• Used within PMI but not exclusive to it
6. 6
Earned Value Analysis Training
GPA – Confidential
PM
Technique
✔ PMI
• Earned Value Analysis (EVA) is a
project management technique for
monitoring the cost and schedule
performance of projects
• Used within PMI but not exclusive to it
• Compares actual and budgeted
resources
7. 7
Earned Value Analysis Training
GPA – Confidential
PM
Technique
Cost Schedule
Cost Status
Schedule Status
✔ PMI
• Earned Value Analysis (EVA) is a
project management technique for
monitoring the cost and schedule
performance of projects
• Used within PMI but not exclusive to it
• Compares actual and budgeted
resources
• Works by comparing project actuals
and budgeted resources expenditures
to show variance from original project
plan in terms of cost and schedule.
8. 8
Earned Value Analysis Training
GPA – Confidential
PM
Technique
Cost Schedule
Monitor
PerformanceCost Status
Schedule Status
✔ PMI
• Earned Value Analysis (EVA) is a
project management technique for
monitoring the cost and schedule
performance of projects
• Used within PMI but not exclusive to it
• Compares actual and budgeted
resources
• Works by comparing project actuals
and budgeted resources expenditures
to show variance from original project
plan in terms of cost and schedule.
• MSP supports EVA but the technique
can be applied without software
9. 9
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it has a budget of £10
10. 10
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
11. 11
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure wasn’t forecast until September
12. 12
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure was not forecast until September
•20% of the budget to last the remaining two thirds of the project!
13. 13
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure was not forecast until September
•20% of the budget to last the remaining two thirds of the project!
?
14. 14
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure was not forecast until September
•20% of the budget to last the remaining two thirds of the project!
?
Is this a problem?
15. 15
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure was not forecast until September
•20% of the budget to last the remaining two thirds of the project!
?
Is this a problem?
Two possible scenarios
Scenario 1 – Over Budget. Planned amount of work, Greater costs
Scenario 2 – Ahead of Schedule. Planned costs, Faster completion
16. 16
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure was not forecast until September
•20% of the budget to last the remaining two thirds of the project!
?
Is this a problem?
Two possible scenarios
Scenario 1 – Over Budget. Planned amount of work, Greater costs
Scenario 2 – Ahead of Schedule. Planned costs, Faster completion
EVA gives the Project manager the technique to see which Scenario is valid
17. 17
Earned Value Analysis Training
EVA lets the Project Manager know if the project is
•On budget using Cost Variance
•On schedule using Schedule Variance
EVA Establishes
GPA – Confidential
Cost Variance (CV)Cost Variance (CV) The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
18. 18
Earned Value Analysis Training
EVA lets the Project Manager know if the project is
•On budget using Cost Variance
•On schedule using Schedule Variance
EVA Establishes
GPA – Confidential
Cost Variance (CV)Cost Variance (CV)
Schedule Variance
(SV)
Schedule Variance
(SV)
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule
19. 19
Earned Value Analysis Training
EVA lets the Project Manager know if the project is
•On budget using Cost Variance
•On schedule using Schedule Variance
•The estimatedcost to complete the project
EVA Establishes
GPA – Confidential
Cost Variance (CV)Cost Variance (CV)
Schedule Variance
(SV)
Schedule Variance
(SV)
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule
Estimate at
Completion (EAC)
Estimate at
Completion (EAC)
How much it will cost in total to complete the task if current spending
patterns are maintained
How much it will cost in total to complete the task if current spending
patterns are maintained
20. 20
Earned Value Analysis Training
To carry out EVA the following information is needed
GPA – Confidential
Planned Value (PV)Planned Value (PV)
Actual Cost (AC)Actual Cost (AC)
Total budget for a specific Work Breakdown StructureTotal budget for a specific Work Breakdown Structure
Amount it actually cost to complete a specific WBS item during a specific
period
Amount it actually cost to complete a specific WBS item during a specific
period
Earned Value (EV)Earned Value (EV) Approved budget for actual work on a given WBS item during a specific
period
Approved budget for actual work on a given WBS item during a specific
period
BCWSBCWS Budgeted cost of work scheduledBudgeted cost of work scheduled
ACWPACWP Actual cost of work performedActual cost of work performed
21. 21
Earned Value Analysis Training
GPA – Confidential
Cost Variance (CV)Cost Variance (CV) The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
Cost Variance (CV) = Earned Value (EV) – Actual Cost (AC)
Cost Variance (CV) is a measure of project performance and indicates how much over or under budget a project is.
A positive figure means the project is under budget
No difference means the project is on budget
A negative figure means the project is over budget
Cost Variance can also be articulated as the following convenient indicators
Cost Variance Percentage (CV%) = Cost Variance (CV) / Earned Value (EV) * 100
Cost Variance % indicates how much over or under budget the project is in terms of percentage
Cost Performance Indicator (CPI) = Earned Value (EV) / Actual Cost (AC)
Cost Performance Indicator is an index showing the efficiency of utilisation of the resource on the project
22. 22
Earned Value Analysis Training
GPA – Confidential
Schedule Variance (SV) = Earned Value (EV) – Planned Value (PV)
Schedule Variance (SV) is a measure of project performance and indicates how much ahead of or behind schedule a project is.
A positive figure means the project is ahead of schedule
No difference means the project is on schedule
A negative figure means the project is behind schedule
Schedule Variance can also be articulated as the following convenient indicators
Schedule Variance Percentage (SV%) = Schedule Variance (SV) / Planned Value (PV) *
100
Schedule Variance % indicates how much ahead or behind schedule a project is in terms of percentage
Schedule Performance Indicator (SPI) = Earned Value (EV) / Planned Value (PV)
Schedule Performance Indicator is an index showing the efficiency of time utilised on the project
Schedule Variance
(SV)
Schedule Variance
(SV)
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule
23. 23
Earned Value Analysis Training
GPA – Confidential
Estimate At Completion = Actual Cost (AC) / Earned Value (EV) * Total Budget
Estimate At Completion (EAC) is the estimated cost of the project at the end of the project
Estimate at
Completion (EAC)
Estimate at
Completion (EAC)
How much it will cost in total to complete the task if current spending
patterns are maintained
How much it will cost in total to complete the task if current spending
patterns are maintained
24. 24
Earned Value Analysis Training
GPA – Confidential
A Practical Example
The Lord of the Manor requires 20 family portraits be painted and ready for the next Ball.
The Lord of the Manor has commissioned a painter to paint the portraits and will pay him £150
a day.
The painter estimates that each portrait will take 20 working days to complete.
Today it is the 30th April 2013.
The Ball takes place on the 8th
November 2014.
25. 25
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
• The project starts on the 30th April
• The Lord of the Manor asks for a status update on the 1st September
• By the 1st of September the original project plan showed that the painter should have completed 4 portraits, each taking 20 days at a cost of £150 a
day. Equating to a cost of £3,000 per portrait
26. 26
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
• The project starts on the 30th April
• The Lord of the Manor asks for a status update on the 1st September
• By the 1st of September the original project plan showed that the painter should have completed 4 portraits, each taking 20 days at a cost of £150 a
day. Equating to a cost of £3,000 per portrait
The Planned Value is calculated as follows.
Planned Value (PV) = £3,000 * 4 portraits = £12,000
27. 27
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
• The project starts on the 30th April
• The Lord of the Manor asks for a status update on the 1st September
• By the 1st of September the original project plan showed that the painter should have completed 4 portraits, each taking 20 days at a cost of £150 a
day. Equating to a cost of £3,000 per portrait
The Planned Value is calculated as follows
Planned Value (PV) = £3,000 * 4 portraits = £12,000
However, the painter has only completed 3 portraits.
The Earned Value is calculated as follows
Earned Value (EV) = £3,000 * 3 portraits = £9,000
28. 28
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
• The project starts on the 30th April
• The Lord of the Manor asks for a status update on the 1st September
• By the 1st of September the original project plan showed that the painter should have completed 4 portraits, each taking 20 days at a cost of £150 a
day. Equating to a cost of £3,000 per portrait
The Planned Value is calculated as follows
Planned Value (PV) = £3,000 * 4 portraits = £12,000
However, the painter has only completed 3 portraits.
The Earned Value is calculated as follows
Earned Value (EV) = £3,000 * 3 portraits = £9,000
The painter only completed 2 portraits as two of the portraits took 30 days to finish and not 20 days as originally planned. Representing a 50% increase on
the original estimate of £3,000 per portrait
The Actual Cost is calculated as follows
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
29. 29
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
From this the Cost Variance (CV), Cost Variance % (CV%) and Cost Variance Indicator (CVI) can be calculated
30. 30
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
From this the Cost Variance (CV), Cost Variance % (CV%) and Cost Variance Indicator (CVI) can be calculated
Cost Variance (CV) = EV £9,000 – AC £12,000 = -£3,000
31. 31
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
From this the Cost Variance (CV), Cost Variance Percentage (CV%) and Cost Variance Indicator (CVI) can be calculated
Cost Variance (CV) = EV £9,000 – AC £12,000 = -£3,000
Cost Variance Percentage (CV%) = CV -£3,000 / EV £9,000 * 100 = -33%
32. 32
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
From this the Cost Variance (CV), Cost Variance Percentage (CV%) can be calculated
Cost Variance (CV) = EV £9,000 – AC £12,000 = -£3,000
Cost Variance Percentage (CV%) = CV -£3,000 / EV £9,000 * 100 = -33%
In real terms this means the project to date has cost £3,000 more than the Lord of the Manor planned to pay and is 33% over budget
33. 33
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
Cost Variance (CV) = EV £9,000 – AC £12,000 = -£3,000
Cost Variance Percentage (CV%) = CV -£3,000 / EV £9,000 * 100 = -33%
The Schedule Variance (SV) and Schedule Variance Percentage (SV%) can now be derived
Schedule Variance (SV) = EV £9,000 – PV £12,000 = -£3,000
Schedule Variance Percentage (SV%) = SV £9,000 – PV £12,000 * 100 = 25%
34. 34
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
Cost Variance (CV) = EV £9,000 – AC £12,000 = -£3,000
Cost Variance Percentage (CV%) = CV -£3,000 / EV £9,000 * 100 = -33%
The Schedule Variance (SV) and Schedule Variance Percentage (SV%) can now be derived
Schedule Variance (SV) = EV £9,000 – PV £12,000 = -£3,000
Schedule Variance Percentage (SV%) = SV £9,000 – PV £12,000 * 100 = 25%
The painter has done £3,000 less worth of work than the Lord of the Manor had expected at this point and is 25% behind schedule.