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Project Management Earned Value

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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.

Economy & FinanceBusiness
1 of 13
PROJECT MANAGEMENT Via EARNED VALUE “ A Concept to Measure the Project Performance”
EARNED VALUE: INTRODUCTION 06/04/09 "A method for measuring project performance. It compares the amount of work that was planned with what was actually accomplished to determine if cost and schedule performance is as planned." - Englert and Associates ,[object Object],[object Object],[object Object],[object Object],[object Object]
GLOSSARY ,[object Object],[object Object],[object Object],06/04/09 Example: Suppose if an activity was supposed to be completed after a week with an estimated cost of 1 lacs, but actually only 75% of the activity was completed after a week and the money incurred was 90 thousand, then BCWS is 1 lacs, ACWP is 90 thousand and BCWP is 75 thousand
CALCULATION OF EV ,[object Object],[object Object],[object Object],[object Object],[object Object],06/04/09
Measurement of Project Performance From EV Concept ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],06/04/09
06/04/09 IILUSTRATION Establish WBS WBS is a hierarchical breakdown of all the work required to achieve the scope of the portion of the objective Schedule variance (SV): Tells about the activities going on according to the schedule or not. SV=EV-BCWS. Cost Variance (CV): Provides information about the cost incurred compared to total budget allotted. CV=EV-ACWP. Actual Cost Activity Progressed Activity 1 Activity 3 Activity 2 Planned Actual Budgeted Cost Planned Schedule Cost Variance Schedule Variance EV
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],06/04/09 or
UNDERSTANDING OF EV ,[object Object],[object Object],[object Object],[object Object],06/04/09 … ..Continued
UNDERSTANDING OF EV ,[object Object],[object Object],06/04/09 ,[object Object],[object Object],[object Object],[object Object]
06/04/09 All cost Data is in INR Example Calculating EV and SV from Daily Progress Report Data of Piling activity PLANNED EXECUTED SV Piles/day Cum. Piles Cum. Cost Piles/day Cum. Piles Cum.Cost 1-June 4 4 260769.2 7 7 420000 159230.7 2-June 4 8 521538.4 6 13 780000 258461.5 3-June 0 0 521538.4 0 13 900000 258461.5 4-June 5 13 782307.6 2 15 1140000 117692.3 5-June 4 17 1043076.9 4 19 1320000 96923 6-June 4 21 1303846.1 3 22 1440000 16153.8 7-June 5 26 1564615.3 2 24 1560000 -124615.38 8-June 4 30 1825384.6 2 26 1680000 -265384.6
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chart 1 Chart 2
CONCLUSION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],06/04/09
THANK YOU

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Project Management Earned Value

  • 1. PROJECT MANAGEMENT Via EARNED VALUE “ A Concept to Measure the Project Performance”
  • 2.
  • 3.
  • 4.
  • 5.
  • 6. 06/04/09 IILUSTRATION Establish WBS WBS is a hierarchical breakdown of all the work required to achieve the scope of the portion of the objective Schedule variance (SV): Tells about the activities going on according to the schedule or not. SV=EV-BCWS. Cost Variance (CV): Provides information about the cost incurred compared to total budget allotted. CV=EV-ACWP. Actual Cost Activity Progressed Activity 1 Activity 3 Activity 2 Planned Actual Budgeted Cost Planned Schedule Cost Variance Schedule Variance EV
  • 7.
  • 8.
  • 9.
  • 10. 06/04/09 All cost Data is in INR Example Calculating EV and SV from Daily Progress Report Data of Piling activity PLANNED EXECUTED SV Piles/day Cum. Piles Cum. Cost Piles/day Cum. Piles Cum.Cost 1-June 4 4 260769.2 7 7 420000 159230.7 2-June 4 8 521538.4 6 13 780000 258461.5 3-June 0 0 521538.4 0 13 900000 258461.5 4-June 5 13 782307.6 2 15 1140000 117692.3 5-June 4 17 1043076.9 4 19 1320000 96923 6-June 4 21 1303846.1 3 22 1440000 16153.8 7-June 5 26 1564615.3 2 24 1560000 -124615.38 8-June 4 30 1825384.6 2 26 1680000 -265384.6
  • 11.
  • 12.