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.
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/
An introduction to project management: Learning the basicsPaul Di Gangi
Presentation Date: 10/6/2010
Location: Public Instruction Department, State of North Carolina
YouTube Videos:
JFK Speech: http://www.youtube.com/watch?v=kwFvJog2dMw
Neil Armstrong: http://www.youtube.com/watch?v=HCt1BwWE2gA
Formal definitions used in presentation are from the Project Management Body of Knowledge (PMBOK) 4th edition published by the Project Management Institute (PMI).
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/
An introduction to project management: Learning the basicsPaul Di Gangi
Presentation Date: 10/6/2010
Location: Public Instruction Department, State of North Carolina
YouTube Videos:
JFK Speech: http://www.youtube.com/watch?v=kwFvJog2dMw
Neil Armstrong: http://www.youtube.com/watch?v=HCt1BwWE2gA
Formal definitions used in presentation are from the Project Management Body of Knowledge (PMBOK) 4th edition published by the Project Management Institute (PMI).
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.
In this presentation we have done earlier a project for Phillip Morris (Pakistan) for the access control system and canteen management system. It is the project presentation for our subject Planning and Scheduling. i hope it is the best for the understanding Project planning and scheduling.
Project management tools and techniquesTata Dinyuy
The different tools and techniques used to plan projects ( both micro and macro projects) including human, material, financial and scheduling techniques (how to draw up Gantt charts, work breakdown schedule, network diagrams and the Program Evaluation and Review Technique)
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/
Project Closure Process Steps PowerPoint Presentation Slides SlideTeam
If you are looking for professional templates and slides to prepare a professional PPT on project closure process steps? Well if yes, then download our ready to use project closure process steps PowerPoint presentation slides. Showcase the performance of your company project to the customer using this project closure process steps PPT presentation. Using these project management presentation templates, you will be able to confirm if the team members have met all sponsor and consumer needs. This closing a project PowerPoint presentation includes essential topics such as project brief, project description, project timeline, project progress summary, project status report, and project health card. It also covers a slide on project dashboard, project closure report, work breakdown structure, and project conclusion report-performance analysis, deadline, budget/costs. With the help of the project description presentation PPT, you will be able to represent throughout the progress of the project. Use of stunning graphics and visuals will help you describe the different project stages performance. Download this project closure checklist PPT presentation. Ensure a clean baton change with our Project Closure Process Steps PowerPoint Presentation Slides. They allow flawless accomplishment.
As far as any project cycle is concerned, it’s important to give it a good closure in the form of PPT presentation slide. This project closure is generally the fourth or last stage in any planned project PowerPoint layout. The Project Closure PowerPoint Presentation Slides ensure that project is brought to near completion mode in a carefully structured or professional manner. Whether you are presenting on project completion, project issue, termination or execution, the PPT template ensures every section or segment is given right amount of space and importance. Confirmation about the fact that the work has been rightly done, gaining a formal acceptance and finally completing off with performance rating, all this can be easily recorded and maintained using this presentation layout. As part of management process, it’s important to use professional designs and PPT template to put forward all the deliverables to the customers and timely updating all the stakeholders regarding all project activities. Each PowerPoint slide makes the concept visually engaging and easy to understand. Get folks eager for an exciting experience with our Project Closure Powerpoint Presentation Slides. They ensure a bigger headcount. https://bit.ly/3suHPoS
Project Cost Management includes the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.
In this presentation, i am taking sequencial information from various PPT's and from PMBOK also. So it is very effective & knowledgeable for Engineering & MBA Students. Thankyou
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.
In this presentation we have done earlier a project for Phillip Morris (Pakistan) for the access control system and canteen management system. It is the project presentation for our subject Planning and Scheduling. i hope it is the best for the understanding Project planning and scheduling.
Project management tools and techniquesTata Dinyuy
The different tools and techniques used to plan projects ( both micro and macro projects) including human, material, financial and scheduling techniques (how to draw up Gantt charts, work breakdown schedule, network diagrams and the Program Evaluation and Review Technique)
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/
Project Closure Process Steps PowerPoint Presentation Slides SlideTeam
If you are looking for professional templates and slides to prepare a professional PPT on project closure process steps? Well if yes, then download our ready to use project closure process steps PowerPoint presentation slides. Showcase the performance of your company project to the customer using this project closure process steps PPT presentation. Using these project management presentation templates, you will be able to confirm if the team members have met all sponsor and consumer needs. This closing a project PowerPoint presentation includes essential topics such as project brief, project description, project timeline, project progress summary, project status report, and project health card. It also covers a slide on project dashboard, project closure report, work breakdown structure, and project conclusion report-performance analysis, deadline, budget/costs. With the help of the project description presentation PPT, you will be able to represent throughout the progress of the project. Use of stunning graphics and visuals will help you describe the different project stages performance. Download this project closure checklist PPT presentation. Ensure a clean baton change with our Project Closure Process Steps PowerPoint Presentation Slides. They allow flawless accomplishment.
As far as any project cycle is concerned, it’s important to give it a good closure in the form of PPT presentation slide. This project closure is generally the fourth or last stage in any planned project PowerPoint layout. The Project Closure PowerPoint Presentation Slides ensure that project is brought to near completion mode in a carefully structured or professional manner. Whether you are presenting on project completion, project issue, termination or execution, the PPT template ensures every section or segment is given right amount of space and importance. Confirmation about the fact that the work has been rightly done, gaining a formal acceptance and finally completing off with performance rating, all this can be easily recorded and maintained using this presentation layout. As part of management process, it’s important to use professional designs and PPT template to put forward all the deliverables to the customers and timely updating all the stakeholders regarding all project activities. Each PowerPoint slide makes the concept visually engaging and easy to understand. Get folks eager for an exciting experience with our Project Closure Powerpoint Presentation Slides. They ensure a bigger headcount. https://bit.ly/3suHPoS
Project Cost Management includes the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.
In this presentation, i am taking sequencial information from various PPT's and from PMBOK also. So it is very effective & knowledgeable for Engineering & MBA Students. Thankyou
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
A brief introduction on various concepts of Project Cost, covering various types of Project Costs, Processes to be followed for developing project budget, project budget components, contingency and management reserves, earned value management
Project Planning and Excution chapter 4.pptadabotor7
undamental business information systems concepts including: trends, components, and roles of information systems and competitive advantage concepts and applications
Program Management 2.0: Work Breakdown StructureJohn Carter
From a course titled Program Management 2.0, this presentation pulls together a suite of tools for creating a Work Breakdown Structure - which is very helpful for tracking the true project a project is making. It lends itself to also communicate the earned value of a project - so teams and managers can see what is done, and what is left to do.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
2. 2
Today’s Situation
Need for accurate and consistent status of information
Numerous complex (and interrelated) projects
Projects with many WBS activities
Diverse technology platforms
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 complete
Source:The Standish Group
3. 3
“Have we done what we said we’d do?”
% complete of
% of Budget spent
% of work done
% of time elapsed
When evaluating the current status of a
project the following questions arise:
•What is the current effort?
•What has been delivered so far?
•What should have been the corresponding
effort?
•When will the project end?
•What will be the overall effort?
•What is the actual cost spent on work?
4. Earned Value Analysis -EVA
Earned value
analysis (EVA),
allows project
managers to make
sure the cost of the
project aligns with
its progress
Understanding how
to calculate and use
EVA can help you
manage your
projects effectively
4
• Earned value analysis is a standard method of
measuring a project's progress at any point to
analyze changes in the project's plan and adjust
the budget accordingly.
• Project managers use EVA to predict the total
cost of a project at completion.
• This method considers all the work the team has
completed and the money they have spent at a
specific point in the project and compares it to
the baseline, or the original budget and schedule.
• Project managers can use this information to
determine patterns and make decisions about
how to proceed with the project.
5. 5
Earned Value Analysis
“Earned Value Analysis” is:
• an industry standard way to:
• measure a project’s progress,
• forecast its completion date and final cost, and
• provide schedule and budget variances along the way.
Compares the PLANNED amount of work with what has
actually been COMPLETED, to determine if COST ,
SCHEDULE, and WORK ACCOMPLISHED are progressing as
planned.
6. 6
EVA Contd..
By integrating three measurements, EVA provides consistent,
numerical indicators to evaluate and compare projects.
Work is “Earned” or credited as it is completed.
Earned value = % of completion x project budget
For example, if you have a project budget of $4 million and your team has completed
20% of your project,
EV = 20% x $4 million
= $800,000
If your team has spent $800,000 or less on the project so far, you can confirm the project
aligns with the budget.
7. 7
Earned Value needed because...
Provides an “Early Warning” signal for prompt corrective action.
Still time to recover
Timely request for additional funds
Circular A-11, Part 7 (Executive Office of the President, Office of Management and
Budget ): Agencies must use a performance based acquisition management system,
based on ANSI/EIA Standard 748, to measure achievement of the cost, schedule, and
performance goals.
Performance-based acquisition management means a documented, systematic process for
program management, which includes integration of program scope, schedule and cost
objectives, establishment of a baseline plan for accomplishment of program objectives,
and use of earned value techniques for performance measurement during execution of
the program.
8. ANSI/EIA standard(American National Standards Institute / Electronic
Industries Alliance)
Define authorized work
Identify Program Organization Structure
Company integration of EVMS subsystems with Work Breakdown Structure
(WBS)
Identify organization/function for overhead
Integrate WBS and Organization Breakdown Structure (OBS), create control
accounts
Sequential scheduling of work
Identify interim measures of progress, i.e. milestones, products, etc.
Establish time-phased budget
Identify significant cost elements within authorized budgets
Identify discrete work packages
All work package budgets & planning packages sum to control acct
Identify and control budgets
Establish overhead budgets by organization element
Identify management reserve and undistributed budget
Reconcile program target cost goal with sum of all internal budgets
(Contd…)
8
9. ANSI/EIA standard
Record direct costs from accounting system
Summarize direct costs into WBS without allocation
Record indirect costs
Identify unit costs, equivalent units costs or other costs
Accurate material cost accumulation by control accounts; EV measurement at
right time; full accountability of material
Control account monthly summary, identification of Cost Variance
(CV) and Schedule Variance (SV)
Explain significant variances
Identify and explain indirect cost variances
Summarize data elements and variances thru WBS/OBS for mgmt.
Implement management actions as result of EVM analysis
Incorporate authorized changes in timely manner
Reconcile budgets with prior budgets
Control retroactive changes
Prevent all but authorized budget changes
Document changes to Performance Measurement Baseline (PMB)
9
10. 10
Requirements of Earned Value
Proper WBS Design
Baseline Budget Control Accounts
Baseline Schedule
Work measurement by Control Account
work-hours, dollars, units, etc.
Good Project Management Practices
11. 11
Steps for EVA
1. Define the work :
Work Breakdown Structure (WBS) with work packages
containing 3 measurable components:
Scope of work to be accomplished
Total (direct and indirect) cost
Timeframe for completion
12. 12
Control Account Plans
A CAP is essentially a Work Package with some added
features:
Assignment of responsibility
• Organization
• Individual
Division (if necessary) into lower-level Work Packages.
Metrics for measuring EV performance
• Milestones
• % complete
• Other
The sum of the CAPs constitutes the Performance
Measurement Baseline (PMB)
13. 13
Steps for EVA
2. Setting up a Baseline Plan :
Work is planned, budgeted, and scheduled in time-phased
"planned value" increments constituting a Performance
Measurement Baseline (PMB).
Performance Measurement Baseline
14. 14
Steps for EVA
3. Measure Performance:
Focuses on performance
Analyzing the data to determine real project status.
In determining the status of projects, three key components
are examined
• Cost and Schedule baseline
• Actual Charges (expenditures)
• Reported accomplishments or “Earned Value”
15. Measuring variables
Budgeted cost for work scheduled (BCWS), sometimes called the planned value.
Budgeted cost for work performed (BCWP) or earned value.
Actual cost of work performed (ACWP).
Budget at completion (BAC).
Estimate at completion (EAC) which is comprised of the cumulative of actual
cost of work performed plus the estimate to complete the remaining work.
Cost variance (CV) which is calculated as BCWP minus ACWP. A result greater
than 0 is favorable (an underrun), a result less than 0 is unfavorable (an
overrun).
Schedule variance (SV) which is calculated as BCWP minus BCWS. A result
greater than 0 is favorable (ahead of schedule), a result less than 0 is
unfavorable (behind schedule).
Variance at completion (VAC) which is calculated as BAC minus EAC. A result
greater than 0 is favorable, a result less than 0 is unfavorable.
15
16. 16
Metrics Defined
BCWS - Budgeted Cost of Work Scheduled/
Planned Cost
Planned cost of the total amount of work
scheduled to be performed by the milestone
date.
BCWS is the sum of the budget items for all
work packages, planning packages, and
overhead which was scheduled for the period,
rather than the cost of the work actually
performed.
BCWS = % Complete (Planned) x Project Budget
BCWP is also contrasted to Actual Cost of
Work Performed (ACWP) which measures the
actual amount spent rather than the budgeted
estimates
BCWP = % Complete (Actual) x Project Budget
ACWP - Actual Cost of Work Performed
Cost incurred to accomplish the work that has
been done to date.
Cost Variance = BCWP – ACWP.
17. EVM
Percent complete is simply the amount of work that has been
completed divided by the budget at completion.
% complete = BCWP / BAC
Percent spent is the amount of the budget that has been spent.
It is calculated by dividing the actual cost of work performed by
the budget at completion.
% spent = ACWP / BAC
Earned Value (EV) = Total project budget multiplied by the %
complete of the project (BCWP)
17
18. Assume we are working on a Client/Server project, and part of the scope is for
Software Design. The time frame is 5 months and the budget for this scope
is $15,000, resulting in a budget of $3,000 per month.
Client/Server Project - WBS 1.1.1 Software Design
Dollars
JAN FEB MAR APR MAY
PV 3000 3000 3000 3000 3000
18
19. 19
Some Derived Metrics
SV: Schedule Variance (BCWP-BCWS)
A comparison of amount of work performed during a
given period of time to what was scheduled to be
performed.
A negative variance means the project is behind
schedule
CV: Cost Variance (BCWP-ACWP)
A comparison of the budgeted cost of work performed
with actual cost to measure cost efficiency.
A negative variance means the project is over budget
i.e. more money is spent than was planned.
23. 23
SPI: Schedule Performance Index
SPI=BCWP/BCWS
SPI<1 means project is behind schedule
CPI: Cost Performance Index
CPI= BCWP/ACWP
CPI<1 means project is over budget
CSI: Cost Schedule Index (CSI=CPI x SPI)
The further CSI is from 1.0, the less likely project
recovery becomes.
Some More Derived Metrics
24. 24
Performance Metrics
SPI: BCWP/BCWS
49,000/55,000 = 0.891
CPI: BCWP/ACWP
49,000/56000 = 0.875
CSI: SPI x CPI
.891 x .875 = 0.780
The CPI and SPI are statistically
accurate indicators of final cost
results.
25. Project Scope Build 80 modules
Project Schedule Estimate 5 Days
Cost Estimate per module 1000 units of money
Project Cost Estimate 80000 units of money
25
Project Plan
The project team needs to build 80 modules in 5 days. It is estimated that each module will cost 1000 units of money.
The following figure provides initial plan for the project. It also provides equivalence between Project Scope, Schedule,
and Cost.
Let us assume that, the project was started
3 days ago and we are evaluating the
performance at the end of Day 3.
Day 1 Day 2 Day 3 Day 4 Day 5
Modules Planned
to be Built
10 13 17 20 20
Estimated Cost
for the Day
Estimated
Cumulative Cost
Module Actually
Built
8 12 15
Value of Modules
Actually Built
Cumulative Value
of Modules
Actually Built
Actual Cost for
the Day
8000 12000 16000
Actual
Cumulative Cost
26. Project Scope Build 80 modules
Project Schedule Estimate 5 Days
Cost Estimate per module 1000 units of money
Project Cost Estimate 80000 units of money
26
Project Plan
The project team needs to build 80 modules in 5 days. It is estimated that each module will cost 1000 units of money.
The following figure provides initial plan for the project. It also provides equivalence between Project Scope, Schedule,
and Cost. Let us assume that, the project was started 3 days ago and
we are evaluating the performance at the end of Day 3.
Day 1 Day 2 Day 3 Day 4 Day 5
Modules Planned
to be Built
10 13 17 20 20
Estimated Cost
for the Day
10000 13000 17000 20000 20000
Estimated
Cumulative Cost
10000 23000 40000 60000 80000
Module Actually
Built
8 12 15
Value of Modules
Actually Built
8000 12000 15000
Cumulative Value
of Modules
Actually Built
8000 20000 35000
Actual Cost for
the Day
8000 12000 16000
Actual
Cumulative Cost
8000 20000 36000
28. 28
Benefits of Earned Value
Schedule Status Reporting
Cost Status Reporting
Forecasting
Risk Identification
Risk Monitoring
Earned Value Analysis is a suggested technique of the following processes:
• Monitor and Control Project Work,
• Control Schedule,
• Control Costs, and
• Control Procurements.
Editor's Notes
(2) Those three measurements are:
time expired
work accomplished
money spent
(2) Thus the name Earned Value; you can actually assign a VALUE to the project at a particular time
You need the WBS structure to be able to quantify output (what is the deliverable?)
Baselines provide a measuring stick.
And if there are not good management practices in place, it won’t work.
If you get into EVA in depth, you may here about a CAP.
Previously called Cost Account Plan.
The Work Package needs to be of the size that it can be handed off to a task manager.
Too large and you have multiple people responsible for the work.
Too small and the program manager winds up micro-managing everything.
The “accompanying narrative” is really an SOW – or Statement of Work.
Oh Boy! Some derived metrics – you were all waiting for some of those, weren’t you?
Cost Variance and Schedule Variance are simply arithmetic differences of where we are and where we should be.
Simple arithmetic.
We’ve accomplished $6,000 worth of output less than we should have
And we’re $7,000 over budget
We need some more derived metrics.
Simple arithmetic.
We’ve accomplished $6,000 worth of output less than we should have
And we’re $7,000 over budget
We need some more derived metrics.
Simple arithmetic.
We’ve accomplished $6,000 worth of output less than we should have
And we’re $7,000 over budget
We need some more derived metrics.
Well, we know we’re behind schedule and over cost,
and we know exactly much for each one, but so what?
Well, now we can begin to integrate these two pieces of information and get an overall picture.
The Performance Indices are really just a way of calculating, on a percentage basis, where we are.
SPI
CPI
But now, when we combine the two, the percentage figure becomes more significant.
Too many numbers!
OK, we’re performing at about 89% of where we should be on performance,
our cost performance is a little worse,
But look at the impact when you combine the two!
What do we do now?