2. Agenda
1. Introduction to Project Controls
2. What is Planned Value
3. What is % Complete and what is Earned Value
4. What is Actual Costs
5. Project Performance Metrics
• SPI and Schedule Variance
• CPI and Cost Variance
3. What is Project Controls?
• Project Controls are an ongoing process which Project Managers
continuously perform through the lifecycle of the project. This process is
aimed to measure project performance and be enable the project
manager to forecast the finish.
• Main Areas of Controls:
1. Scope
2. Schedule
3. Cost
4. Quality
5. Schedule Phases
• The phases of the schedule development
1. During Estimate Phase : Initial Schedule or Estimate Schedule
• High level estimate to estimate durations based on the understanding of the scope
• Performed by the Estimating Team
2. After Contract Award: Baseline Schedule
• Typically published after 10 business days from contract award and is discussed in the kick-
off meeting with the client.
• Should be more refined than the initial schedule and client buy-in is obtained
• Once Client buys-in it is stored and named as the Baseline Schedule
• Baseline schedule is the playbook of all project schedules and is always referred back to in
all stages of the project.
• All Schedule Controls are performed throughout the project to measure against the baseline
schedule
6. Baseline Schedule Example:
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
A
B
C
D
E
GANTT CHART presentation for Baseline Schedule
7. Further Development of Baseline Schedule
Activity Duration Budget
A 5 $20,000
B 3 $15,000
C 4 $20,000
D 2 $4,000
E 3 $18,000
TOTAL BUDGET
(BAC)
$77,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
A 4k 4k 4k 4k 4k
B 5k 5k 5k
C 5k 5k 5k 5k
D 2k 2k
E 6k 6k 6k
8. Schedule Example - Continued
Question:
- By day 3, per the baseline,
how much did we PLAN to
spend?
- Answer: PV = $12k
- By day 7, what is our
planned value?
- Answer: PV= $40k
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
A 4k 4k 4k 4k 4k
B 5k 5k 5k
C 5k 5k 5k 5k
D 2k 2k
E 6k 6k 6k
9. Planned Value - Continued
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
A 4k 4k 4k 4k 4k
B 5k 5k 5k
C 5k 5k 5k 5k
D 2k 2k
E 6k 6k 6k
PV 4k 8k 12k 16k 20k 30k 40k 50k 55k 57k 59k 65k 71k 77k
10. Earned Value
• Earned value is how much actual progress was completed for any given
activity at a certain point in time (DATA DATE).
• It is a derived as a percentage of the original budget, based on scope
completion
• The % complete is always the percentage completed of SCOPE
Therefore:
EARNED VALUE = % Complete of SCOPE x Budget (BAC)
11. Earned Value Example
Activity Duration Budget
A 5 $20,000
B 3 $15,000
C 4 $20,000
D 2 $4,000
E 3 $18,000
TOTAL BUDGET
(BAC)
$77,000
Activity % Comp
A 100 %
B 50%
C 100%
D 0%
E 0%
TOTAL EARNED VALUE
(EV)
AFTER 6
days OR
by day 7
DATA
DATE
EV
$20,000
$7,500
$20,000
0
0
$47,500
12. Earned Value – Schedule Metrics
• At day 7:
• EV =$47,500
• PV = $40,000
Question:
How is our schedule
performance?
Answer:
We’re doing well!
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
A 4k 4k 4k 4k 4k
B 5k 5k 5k
C 5k 5k 5k 5k
D 2k 2k
E 6k 6k 6k
P
V
4k 8k 12
k
16
k
20
k
30
k
40
k
50
k
55
k
57
k
59
k
65
k
71
k
77
k
EV @
day 7
$20,000
$7,500
$20,000
0
0
$47,500
13. Example Continue- Schedule-wise, How well
are we doing?
• EV = $47,500
• PV = $40,000
• Since we actually earned better than we planned, (EV > PV), then . We’re ahead of schedule
• IF EV< PV, then we’re behind schedule
• Further dissection:
• At day 7 (our data date – when we collected all data), our schedule earnings were how much higher than
planned??? (This is called Schedule Variance)
• Schedule Variance = EV – PV = $7,500 (positive number)
• OR
• At day 7 , how much did we earn compared to planned (just a simple division)
• EV / PV = 47500 / 40000 = 1.1875
• THIS IS CALLED SCHEDULE PERFOMANCE INDEX = SPI
14. Schedule Controls Summary
• Planned Value = PV = What was planned at the baseline schedule in terms of budget
• Earned Value = EV = How much we earned of what was budgeted for
EV= ACTUAL % COMPLETE OF SCOPE x Budget
• Schedule Variance = SV = Earned Value – Planned Value = EV - PV
IF SV = Positive Number , then we’re ahead of schedule
IF SV = Negative Number, then we’re behind schedule
• Schedule Performance Index = SPI = Earned Value / Planned Value = EV/PV
IF SPI is greater than 1, then we’re ahead of schedule
IF SPI is less than 1, then we’re behind schedule
15. Exercise for the team
• Question: The total budget at completion for the entire project is $800,000. The
project has a total planned value of $180,000 after 5 days, per the baseline
schedule. After 5 days, the percent complete for the project was calculated at
20%. Please calculate the Schedule Variance, Schedule Performance Index
and determine whether the project is ahead or behind schedule.
• Answer:
• EV = 20%x 800,000 = $160,000
• SV = EV-PV = $160,000 - $180,000 = ($ - 20,000)
• SPI = EV/PV = $160/180 = 0.88
• Therefore, the project is running behind schedule
16. Exercise for the team
• At a given data date for project XYZ, the SPI was 0.8. The planned value at
the data date was $380,000 and the overall budget at completion is
$800,000. What is the percentage completed of scope at this data date?
