1.
Project Schedule and Earned
Value Analysis
Ahmed Badr
Version 01
13 Jan 2014
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2.
Project Schedule
• MS Project Presentation
• https://www.youtube.com/watch?v=7WsfuvHegxE
• http://www.slideshare.net/khem13/ms-project-presentation-
9034496
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3.
Three key values
• Total Budget
• BCWS
• The budgeted cost of individual tasks as they are scheduled in the project plan, based on the costs of the resources that are
assigned to those tasks, plus any fixed costs that are associated with the tasks. This is the budgeted cost of work scheduled
(BCWS). BCWS is the baseline cost up to the status date that you choose. Budgeted cost values are stored in the baseline
fields, or, if you saved multiple baselines, in the Baseline1 through Baseline10 fields.
• PV or BCWS = Hourly Rate * Total Hours Planned or Scheduled
• ACWP
• The actual cost that is required to complete all or some portion of the tasks, up to the status date. This is the actual
cost of work performed (ACWP). Normally, Microsoft Office Project 2007 correlates the actual costs with the actual
work.
• AC or ACWP = Hourly Rate * Total Hours Spent
• BCWP
• The value of the work that is performed by the status date, measured in currency. This is literally the value earned by
the work performed and is called the budgeted cost of work performed (BCWP). This value is calculated for each
individual task, but is analyzed at an aggregate level (typically at the project level).
• EV or BCWP = Baselined Cost * % Complete Actual
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4.
Cost Variance %
• Cost Variance (CV) = Earned Value (EV) - Actual Cost (AC)
• Or
• Cost Variance (CV) = BCWP - ACWP
Cost Variance
• Cost Variance % indicates how much over or under budget the project is in terms
of percentage.
• CV % = Cost Variance (CV) / Earned Value (EV)
• Or
• CV % = CV / BCWP
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5.
Cost Performance Indicator (CPI)
• Cost Performance Indicator is an index showing the efficiency of the
utilization of the resources on the project. Cost Performance Indicator
can be calculated using the following formula:
• CPI = Earned Value (EV) / Actual Cost (AC)
• Or
• CPI = BCWP / ACWP
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6.
Schedule Variance
• Schedule Variance indicates how much ahead or behind schedule the
project is.
• Schedule Variance (SV) = Earned Value (EV) - Planned Value (PV)
• Or
• Schedule Variance (SV) = BCWP - BCWS
Schedule Variance %
• Schedule Variance % indicates how much ahead or behind schedule
the project is in terms of percentage.
• SV % = Schedule Variance (SV) / Planned Value (PV)
• Or
• SV % = SV / BCWS
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7.
Schedule Performance Indicator (SPI)
• Schedule Performance Indicator is an index showing the efficiency of
the time utilized on the project. Schedule Performance Indicator can
be calculated using the following formula:
• SPI = Earned Value (EV) / Planned Value (PV)
• Or
• SPI = BCWP / BCWS
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8.
To Complete Schedule Performance Indicator
(TSPI)
• To Complete Schedule Performance Indicator is an index showing the
efficiency at which the remaining time on the project should be
utilized. This can be calculated using the following formula:
• TSPI = ( Total Budget - EV ) / ( Total Budget - PV )
• Or
• TSPI = ( Total Budget - BCWP ) / ( Total Budget - BCWS )
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9.
MS Project - Earned Value
• Tables
• Entry – Resources Sheet - Cost
• On the View menu, point to Table, and then click More Tables
• In the Tables list, click Earned Value, Earned Value Cost Indicators, or Earned Value
Schedule Indicators, and then click Apply.
• Create Baseline
• Set “advanced” options to calculate based in which baseline
• And set the Earned Value Calculation method
• Reports
• Use the Earned Value Over Time report to view a chart that plots AC (actual cost of
work performed), planned value (budgeted cost of work scheduled), and earned
value (budgeted cost of work performed) over time. To generate this report, on the
Report menu, click Visual Reports. Click Earned Value Over Time and then click View
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10.
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11.
Plan-Track-Analyze
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12.
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13.
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14.
Earned Value over Time Report
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15.
Project Forecast
• Budget At Completion (BAC)
• Budget At Completion (BAC) is the total budget allocated to the
project.
• Budget At Completion (BAC) is generally plotted over time. Say like
periods of reporting (Monthly, Weekly, etc.)
• BAC is used to compute the Estimate At Completion (EAC), explained
in next section.
• BAC is also used to compute the TCPI and TSPI.
• BAC = Baseline Effort-hours * Hourly Rate
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16.
Estimate To Complete (ETC)
• Estimate To Complete (ETC) is the estimated cost required to
complete the remainder of the project.
• Estimate To Complete (ETC) is calculated and applied when the past
estimating assumptions become invalid and a need for fresh
estimates arises.
• ETC is used to compute the Estimation At Completion (EAC).
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17.
Estimate At Completion (EAC)
• Estimate At Completion (EAC) is the estimated cost of the project at the
end of the project.
• There are three methods to calculate EAC:
• Variances are Typical - This method is used when the variances at the current stage
are typical and are not expected to occur in the future.
• Past Estimating Assumptions are not valid - This method is used when the past
estimating assumptions are not valid and fresh estimates are applied to the project.
• Variances will be present in the future - This method is used when the assumption is
that the current variances will continue to be present in the future.
• The formulas for calculation of the three methods are as given below:
• AC + (BAC - EV)
• AC + ETC (Estimate To Complete)
• AC + (BAC- EV) / CPI
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18.
Variance At Completion (VAC)
• Variance At completion (VAC) is the variance on the total budget at the end
of the project.
• This is the difference between what the project was originally expected
(baselined) to cost, versus what the it is now expected to cost.
• VAC = BAC – EAC
• % Completed Planned
• The percentage of work which was planned to be completed by the Reporting Date.
This is calculated using the following formula:
• % Completed Planned = PV / BAC
• % Completed Actual
• The percentage of work which was actually completed by the Reporting Date. This is
calculated using the following formula:
• % Completed Actual = AC / EAC
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19.
Earned Value Focuses on
• % Completed Planned
• The percentage of work which was planned to be completed by the Reporting
Date. This is calculated using the following formula:
• % Completed Planned = PV / BAC
• % Completed Actual
• The percentage of work which was actually completed by the Reporting Date.
This is calculated using the following formula:
• % Completed Actual = AC / EAC
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20.
Plan-Track-Analyze-Forecast
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21.
Forecast after Change Status Day
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