SlideShare una empresa de Scribd logo
1 de 14
Descargar para leer sin conexión
Earned Value Management

4/3/2011

Earned Value Analysis
Concepts

Earned Value Management

Earned Value Analysis
“The rabbit wouldn’t have lost the race if someone
informed about its performance time to time…”
From old story of Rabbit & Tortoise

PMP Prep Course

1
Earned Value Management

4/3/2011

Earned Value Analysis
WHAT IS EVA?
EVA is basically a methodology to track
1. Project Schedule Performance
2. Project Cost Performance
3. Project Progress

Earned Value Analysis


PMP Prep Course

Project Schedule Performance
to measure project
schedule
performance and determine time to
complete project
- i.e. measuring what is completed to date
what is expected to complete

2
Earned Value Management

4/3/2011

Earned Value Analysis


Project Cost Performance
- to measure how much is spent against what
is expected to be spent

Earned Value Analysis
Benefits of EVA
1. For project managers
•
•
•
•
•

PMP Prep Course

Reliable project costs and schedule data for
more effective decision making
The relationship between cost, schedule and
work achieved
Ability to avoid last-minute “surprises”
Early identification of potential problems
Accurate prediction of project costs at
completion

3
Earned Value Management

4/3/2011

Earned Value Analysis
Benefits of EVA
2. Provide ability to answer
◦
◦
◦
◦
◦

What did we get for money spent
How much will the project cost to
complete
When will the project be complete
Which activities are contributing to the
cost overrun
Which resources contributing to the
schedule slippage

Earned Value Analysis
Planned Value (PV)

Planned Value (PV). PV tells you what you plan to
do.
Planned Value = Physical Work + Approved
Budget
PV, also known as Budgeted Cost of Work
Scheduled (BCWS)
PV is categorized as:
Cumulative PV is the sum of the approved budget
for activities scheduled to be performed to date.
Current PV is the approved budget for activities
scheduled to be performed during a given period.

PMP Prep Course

4
Earned Value Management

4/3/2011

Earned Value Analysis
PV example
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 – Software Design
Dollars
PV

JAN
3000

FEB
3000

MAR
3000

APR
3000

What is current and cumulative PV?

MAY
3000
As on today

Earned Value Analysis
The Cumulative PV is the total for the elapsed months:
January – March. The cumulative PV is $9,000.
The Current PV is the budget for the current month,
March, and equals $3,000.
Client/Server project – Software Design
Dollars
PV

JAN
3000

FEB
3000

MAR
3000

APR
3000

MAY
3000
As on today

PMP Prep Course

5
Earned Value Management

4/3/2011

Earned Value Analysis
Budget at Completion (BAC)
BAC is the sum of all budgets allocated to a
project scope.
◦ BAC can be obtained by work packages
◦ The Project BAC must always equal the Project
Total PV.
◦ If they are not equal, your earned value calculations
and analysis will be inaccurate.

Earned Value Analysis
What is the BAC for this project if Software Design is
the complete scope of the project?
Client/Server project – Software Design
Dollars
PV

JAN
3000

FEB
3000

MAR
3000

APR
3000

MAY
3000
As on today

•Yes, BAC = $15,000. And, in keeping with the previous
points about BAC
•The project BAC equals the Project Total PV.
•The Earned Value calculations are correct.

PMP Prep Course

6
Earned Value Management

4/3/2011

Earned Value Analysis
Actual Cost (AC)
Actual Cost (AC), also called actual
expenditures, is the cost incurred for
executing work on a project..
AC is also called Actual Cost of Work
Performed (ACWP).
Cumulative AC is the sum of the actual cost
for activities performed to date.
Current AC is the actual costs of activities
performed during a given period.

Earned Value Analysis
Cumulative AC is the sum of the actual cost for
activities performed to date, and Current AC is the
actual costs of activities performed during a given
period.
Client/Server project – Software Design

PV
AC

Dollars
JAN
3000
1100

FEB
3000
1200

MAR
3000
1500

APR
3000

MAY
3000

As on today

•The Cumulative AC is the total for the elapsed months: January –
March. The Cumulative AC is $3,800.
•The Current AC is the actual cost for the current month, March,
and equals $1,500.

PMP Prep Course

7
Earned Value Management

4/3/2011

Earned Value Analysis
Earned Value (EV)
EV is the quantification of the “worth” of the work
done to date.
EV tells us, in physical terms, what the project has
accomplished.
Cumulative EV is the sum of the budget for the
activities accomplished to date.
Current EV is the sum of the budget for the activities
accomplished in a given period.

Earned Value Analysis
Earned Value example
Client/Server project – Software Design
Dollars
PV
AC
EV

JAN
3000
1100
900

FEB
3000
1200
1000

MAR
3000
1500
1200

APR
3000

MAY
3000
As on today

• The Current EV is the sum of the budget for the activities
accomplished in the current month, March, and equals $1,200.
• The Cumulative EV is the sum of the budget for the activities
accomplished to date: January – March. The cumulative EV is
therefore $3,100.

PMP Prep Course

8
Earned Value Management

4/3/2011

Earned Value Analysis
Client/Server project – Software Design
Dollars
PV
AC
EV

JAN
3000
1100
900

Cum PV = $9,000
Cum AC = $3,800
Cum EV = $3,100

FEB
3000
1200
1000

MAR
3000
1500
1200

APR
3000

MAY
3000
As on today

Current PV = $3,000
Current AC = $1,500
Current EV = $1,200

BAC = $15,000

Earned Value Analysis

Actual Cost
(AC)

Budget At
Completion
(BAC)
Planned Value
(PV)

Earned Value
(EV)
As On Date

PMP Prep Course

9
Earned Value Management

4/3/2011

Earned Value Analysis



Schedule Variance (SV) = (BCWP – BCWS)
= (EV – PV)

◦ 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




Cost Variance (CV) = (BCWP – ACWP)
= (EV – AC)

◦ A comparison of the budgeted cost of work
performed with actual cost.
◦ A negative variance means the project is over
budget.

Earned Value Analysis
 Schedule

Performance Index (SPI)

SPI=BCWP/BCWS = EV/PV
 SPI<1 means project is behind schedule


 Cost

Performance Index (CPI)

CPI= BCWP/ACWP = EV/AC
 CPI<1 means project is over budget


 Cost

PMP Prep Course

Schedule Index (CSI)

10
Earned Value Management

4/3/2011

Earned Value Analysis
CSI=CPI x SPI
 CSI <1, the project is over budget and behind
schedule
 Estimate At Completion (EAC)
 EAC = BAC/CPI
 Estimate to Complete (ETC)
 ETC = EAC – BAC


Earned Value Analysis
To-Complete Performance Index (TCPI)
 Is calculated projection of cost performance,
must be achieved on the remaining work
 That is ratio between remaining work and
funds remaining
 TCPI = (BAC-EV)/(BAC-AC)


PMP Prep Course

11
Earned Value Management

4/3/2011

Earned Value Analysis
A $10,000 software project is scheduled
for 4 weeks.
At the end of the third week, the project is
50% complete and the actual costs to
date is $9,000
Planned Value (PV) = $7,500
Earned Value (EV) = $5,000
Actual Cost (AC) = $9,000

Earned Value Analysis
Schedule Variance
= EV – PV = $5,000 – $7,500 = - $2,500
 Schedule Performance Index (SPI)
= EV/PV = $5,000 / $7,500 = 0.66
 Cost Variance
= EV – AC = $5,000 - $9,000 = - $4,000
 Cost Performance Index (CPI)
= EV/AC = $5,000 / $9,000 = 0.55
The metrics indicate the project is behind schedule
and over budget.
 On-target projects have an SPI and CPI of 1 or
greater


PMP Prep Course

12
Earned Value Management

4/3/2011

Earned Value Analysis
If the project continues at the current
performance, what is the true cost of the
project?
 Estimate At Complete


= Budget At Complete (BAC) / CPI
= $10,000 / 0.55 = $18,181
At the end of the project, the total project
costs will be $18,181

Earned Value Analysis
Formulas to recap:
SCHEDULE

COST

SV = EV – PV
SV = BCWP – BCWS

CV = EV – AC
CV = BCWP – ACWP

SPI = EV / PV
SPE = BCWP / BCWS

CPI = EV / AC
CPI = BCWP / ACWP

CSI = CPI * SPI
TCPI = (BAC-EV)/(BAC-AC)

PMP Prep Course

EAC = BAC / CPI
ETC = EAC - BAC

13
Earned Value Management

4/3/2011

Questions ?

PMP Prep Course

14

Más contenido relacionado

La actualidad más candente

Earned value analysis
Earned value analysisEarned value analysis
Earned value analysisNikhil Raj
 
Earned value for pmp and pmi acp exam
Earned value for pmp and pmi acp examEarned value for pmp and pmi acp exam
Earned value for pmp and pmi acp examManish Purwar
 
Earned Value Management
Earned Value ManagementEarned Value Management
Earned Value ManagementMansoor Shoaib
 
EVM of Project Management...
EVM of Project Management...EVM of Project Management...
EVM of Project Management...Fahad Ali
 
3 pm3 c_4%20-%20control%20accounts%20and%20the%20distributed%20budget
3 pm3 c_4%20-%20control%20accounts%20and%20the%20distributed%20budget3 pm3 c_4%20-%20control%20accounts%20and%20the%20distributed%20budget
3 pm3 c_4%20-%20control%20accounts%20and%20the%20distributed%20budgetharwoodr
 
Earned Value Management
Earned Value ManagementEarned Value Management
Earned Value ManagementMatt Stehling
 
Earned value analysis training
Earned value analysis trainingEarned value analysis training
Earned value analysis trainingPaul King
 
Project Management Earned Value
Project Management Earned ValueProject Management Earned Value
Project Management Earned Valueconstructioninside
 
Earned value
Earned valueEarned value
Earned valueOliver
 
Earned Value Analysis
Earned Value AnalysisEarned Value Analysis
Earned Value AnalysisSaqib Raza
 
A simple approach to understanding Earned Value Management
A simple approach to understanding Earned Value ManagementA simple approach to understanding Earned Value Management
A simple approach to understanding Earned Value ManagementProPM Academy
 
Earned value analysis for a construction project
Earned value analysis for a construction projectEarned value analysis for a construction project
Earned value analysis for a construction projectIAEME Publication
 
Earned value Project Management (evpm)
Earned value Project Management (evpm)Earned value Project Management (evpm)
Earned value Project Management (evpm)Ejaz Bhatti
 
A simple example of Earned Value Management (EVM) in action
A simple example of Earned Value Management (EVM) in actionA simple example of Earned Value Management (EVM) in action
A simple example of Earned Value Management (EVM) in actionPlanisware
 

La actualidad más candente (20)

PROJECT HEALTH MONITORING BY EARNED VALUE ANALYSIS
PROJECT HEALTH MONITORING BY EARNED VALUE ANALYSISPROJECT HEALTH MONITORING BY EARNED VALUE ANALYSIS
PROJECT HEALTH MONITORING BY EARNED VALUE ANALYSIS
 
Earned value analysis
Earned value analysisEarned value analysis
Earned value analysis
 
Earned value for pmp and pmi acp exam
Earned value for pmp and pmi acp examEarned value for pmp and pmi acp exam
Earned value for pmp and pmi acp exam
 
Back to basics - Earned Value Management for beginners webinar
Back to basics - Earned Value Management for beginners webinarBack to basics - Earned Value Management for beginners webinar
Back to basics - Earned Value Management for beginners webinar
 
Earned Value Management
Earned Value ManagementEarned Value Management
Earned Value Management
 
EVM of Project Management...
EVM of Project Management...EVM of Project Management...
EVM of Project Management...
 
PMP COST FORMULAE
PMP COST FORMULAEPMP COST FORMULAE
PMP COST FORMULAE
 
3 pm3 c_4%20-%20control%20accounts%20and%20the%20distributed%20budget
3 pm3 c_4%20-%20control%20accounts%20and%20the%20distributed%20budget3 pm3 c_4%20-%20control%20accounts%20and%20the%20distributed%20budget
3 pm3 c_4%20-%20control%20accounts%20and%20the%20distributed%20budget
 
Project Health.doc
Project Health.docProject Health.doc
Project Health.doc
 
Earned Value Management
Earned Value ManagementEarned Value Management
Earned Value Management
 
Earned Value fundamentals
Earned Value fundamentalsEarned Value fundamentals
Earned Value fundamentals
 
Earned value analysis training
Earned value analysis trainingEarned value analysis training
Earned value analysis training
 
Project Management Earned Value
Project Management Earned ValueProject Management Earned Value
Project Management Earned Value
 
Earned value
Earned valueEarned value
Earned value
 
Projects Performance Analysis & Forecasting
Projects Performance Analysis & Forecasting Projects Performance Analysis & Forecasting
Projects Performance Analysis & Forecasting
 
Earned Value Analysis
Earned Value AnalysisEarned Value Analysis
Earned Value Analysis
 
A simple approach to understanding Earned Value Management
A simple approach to understanding Earned Value ManagementA simple approach to understanding Earned Value Management
A simple approach to understanding Earned Value Management
 
Earned value analysis for a construction project
Earned value analysis for a construction projectEarned value analysis for a construction project
Earned value analysis for a construction project
 
Earned value Project Management (evpm)
Earned value Project Management (evpm)Earned value Project Management (evpm)
Earned value Project Management (evpm)
 
A simple example of Earned Value Management (EVM) in action
A simple example of Earned Value Management (EVM) in actionA simple example of Earned Value Management (EVM) in action
A simple example of Earned Value Management (EVM) in action
 

Similar a Project managment 6 (a)

Understanding_EVA_V2.pptx
Understanding_EVA_V2.pptxUnderstanding_EVA_V2.pptx
Understanding_EVA_V2.pptxFasiHaider3
 
5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt
5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt
5. PAE AcFn621 Ch-5 Execution and Monitoring.pptProfDrAnbalaganChinn
 
Projects Control Using Earned Value Techniques - Part One
Projects Control Using Earned Value Techniques - Part OneProjects Control Using Earned Value Techniques - Part One
Projects Control Using Earned Value Techniques - Part OneWaleed Hamdy Albana
 
project control using earned value analysis - Part 01
project control using earned value analysis - Part 01 project control using earned value analysis - Part 01
project control using earned value analysis - Part 01 waleed hamdy
 
Project monitoring & Earned Value Analysis
Project monitoring & Earned Value AnalysisProject monitoring & Earned Value Analysis
Project monitoring & Earned Value AnalysisBECM, RUET, Bangladesh
 
Ch 9 project monitoring &amp; control updated
Ch 9 project monitoring &amp; control updatedCh 9 project monitoring &amp; control updated
Ch 9 project monitoring &amp; control updatedFarhana Rehman
 
L06 cost management
L06 cost managementL06 cost management
L06 cost managementAsa Chan
 
PM - EVM - Dr Najam Abbas - OHT 1.pdf
PM - EVM - Dr Najam Abbas - OHT 1.pdfPM - EVM - Dr Najam Abbas - OHT 1.pdf
PM - EVM - Dr Najam Abbas - OHT 1.pdfNajm Naqvi
 
Project Cost Management - PMP preparation course
Project Cost Management - PMP preparation courseProject Cost Management - PMP preparation course
Project Cost Management - PMP preparation courseVladimir Vujovic
 
Program Management 2.0: Work Breakdown Structure
Program Management 2.0: Work Breakdown StructureProgram Management 2.0: Work Breakdown Structure
Program Management 2.0: Work Breakdown StructureJohn Carter
 
projectcostcontrol-130625012804-phpapp02 (1)
projectcostcontrol-130625012804-phpapp02 (1)projectcostcontrol-130625012804-phpapp02 (1)
projectcostcontrol-130625012804-phpapp02 (1)Nita Cristian
 
Project cost & control
Project cost & controlProject cost & control
Project cost & controlAMARAYYA
 
Project Cost Management
Project Cost ManagementProject Cost Management
Project Cost ManagementHayat Denzi
 
03costestimation-140930114902-phpapp01.pdf
03costestimation-140930114902-phpapp01.pdf03costestimation-140930114902-phpapp01.pdf
03costestimation-140930114902-phpapp01.pdfzohir khellouf
 

Similar a Project managment 6 (a) (20)

Understanding_EVA_V2.pptx
Understanding_EVA_V2.pptxUnderstanding_EVA_V2.pptx
Understanding_EVA_V2.pptx
 
5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt
5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt
5. PAE AcFn621 Ch-5 Execution and Monitoring.ppt
 
Projects Control Using Earned Value Techniques - Part One
Projects Control Using Earned Value Techniques - Part OneProjects Control Using Earned Value Techniques - Part One
Projects Control Using Earned Value Techniques - Part One
 
project control using earned value analysis - Part 01
project control using earned value analysis - Part 01 project control using earned value analysis - Part 01
project control using earned value analysis - Part 01
 
Project monitoring & Earned Value Analysis
Project monitoring & Earned Value AnalysisProject monitoring & Earned Value Analysis
Project monitoring & Earned Value Analysis
 
EVA - Metrics.ppt
EVA - Metrics.pptEVA - Metrics.ppt
EVA - Metrics.ppt
 
COST MANAGEMENT REPORT
COST MANAGEMENT REPORT COST MANAGEMENT REPORT
COST MANAGEMENT REPORT
 
An introduction to project accounting
An introduction to project accountingAn introduction to project accounting
An introduction to project accounting
 
Ch 9 project monitoring &amp; control updated
Ch 9 project monitoring &amp; control updatedCh 9 project monitoring &amp; control updated
Ch 9 project monitoring &amp; control updated
 
L06 cost management
L06 cost managementL06 cost management
L06 cost management
 
PM - EVM - Dr Najam Abbas - OHT 1.pdf
PM - EVM - Dr Najam Abbas - OHT 1.pdfPM - EVM - Dr Najam Abbas - OHT 1.pdf
PM - EVM - Dr Najam Abbas - OHT 1.pdf
 
Project Cost Management - PMP preparation course
Project Cost Management - PMP preparation courseProject Cost Management - PMP preparation course
Project Cost Management - PMP preparation course
 
Program Management 2.0: Work Breakdown Structure
Program Management 2.0: Work Breakdown StructureProgram Management 2.0: Work Breakdown Structure
Program Management 2.0: Work Breakdown Structure
 
Pmp cost chapter 7
Pmp cost chapter 7Pmp cost chapter 7
Pmp cost chapter 7
 
Earned Value
Earned ValueEarned Value
Earned Value
 
6- PMP Training - Cost Management
6- PMP Training - Cost Management6- PMP Training - Cost Management
6- PMP Training - Cost Management
 
projectcostcontrol-130625012804-phpapp02 (1)
projectcostcontrol-130625012804-phpapp02 (1)projectcostcontrol-130625012804-phpapp02 (1)
projectcostcontrol-130625012804-phpapp02 (1)
 
Project cost & control
Project cost & controlProject cost & control
Project cost & control
 
Project Cost Management
Project Cost ManagementProject Cost Management
Project Cost Management
 
03costestimation-140930114902-phpapp01.pdf
03costestimation-140930114902-phpapp01.pdf03costestimation-140930114902-phpapp01.pdf
03costestimation-140930114902-phpapp01.pdf
 

Más de Абдулазіз Мухаммед (9)

Project managment 10
Project managment  10Project managment  10
Project managment 10
 
Project managment 9
Project managment  9Project managment  9
Project managment 9
 
Project managment 8
Project managment  8Project managment  8
Project managment 8
 
Project managment 7
Project managment  7Project managment  7
Project managment 7
 
Project managment 6
Project managment 6Project managment 6
Project managment 6
 
Project managment 4
Project managment 4Project managment 4
Project managment 4
 
Project managment 3
Project managment 3Project managment 3
Project managment 3
 
Project managment 2
Project managment 2Project managment 2
Project managment 2
 
Project managment 1
Project managment 1Project managment 1
Project managment 1
 

Último

Olympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness GaugeOlympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness GaugeStephenKim86
 
Young Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya CherianYoung Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya CherianCDEEPANVITA
 
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfCORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfLouis Malaybalay
 
Meet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing EntrepreneurMeet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing Entrepreneurramya202104
 
Green Innovations: Wristbands Ireland's Eco-Friendly Products
Green Innovations: Wristbands Ireland's Eco-Friendly ProductsGreen Innovations: Wristbands Ireland's Eco-Friendly Products
Green Innovations: Wristbands Ireland's Eco-Friendly ProductsWristbands Ireland
 
Digital Marketing Training Program skills s
Digital Marketing Training Program skills sDigital Marketing Training Program skills s
Digital Marketing Training Program skills sgodxzyrox
 
Dashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de OperacionesDashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de OperacionesLPI ONG
 
Benihana of Tokyo case study11111111.pdf
Benihana of Tokyo case study11111111.pdfBenihana of Tokyo case study11111111.pdf
Benihana of Tokyo case study11111111.pdfjavenxxx01
 
A Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdfA Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdfmeftaul987
 
NewBase 14 March 2024 Energy News issue - 1707 by Khaled Al Awadi_compress...
NewBase  14 March  2024  Energy News issue - 1707 by Khaled Al Awadi_compress...NewBase  14 March  2024  Energy News issue - 1707 by Khaled Al Awadi_compress...
NewBase 14 March 2024 Energy News issue - 1707 by Khaled Al Awadi_compress...Khaled Al Awadi
 
unfinished legacy it is a clothing brand
unfinished legacy it is a clothing brandunfinished legacy it is a clothing brand
unfinished legacy it is a clothing brandakashm530190
 
ICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the IndustryICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the IndustryDennisViau
 
L-1 VISA Business (Plan Sample) - Plan Writers
L-1 VISA Business (Plan Sample) - Plan WritersL-1 VISA Business (Plan Sample) - Plan Writers
L-1 VISA Business (Plan Sample) - Plan WritersPlan Writers
 
10 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 202410 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 2024Nate Evans
 
Wallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loanWallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loansujat8807
 
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024The Vietnam Believer_Newsletter_Vol.001_Mar12 2024
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024believeminhh
 
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...BilalAhmed717
 
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi Tube
 
The Smart Bridge Interview now Veranda Learning
The Smart Bridge Interview now Veranda LearningThe Smart Bridge Interview now Veranda Learning
The Smart Bridge Interview now Veranda LearningNaval Singh
 
PHX Corporate Presentation March 2024 Final
PHX Corporate Presentation March 2024 FinalPHX Corporate Presentation March 2024 Final
PHX Corporate Presentation March 2024 FinalPanhandleOilandGas
 

Último (20)

Olympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness GaugeOlympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness Gauge
 
Young Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya CherianYoung Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya Cherian
 
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfCORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
 
Meet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing EntrepreneurMeet Raj Shamani: A Trailblazing Entrepreneur
Meet Raj Shamani: A Trailblazing Entrepreneur
 
Green Innovations: Wristbands Ireland's Eco-Friendly Products
Green Innovations: Wristbands Ireland's Eco-Friendly ProductsGreen Innovations: Wristbands Ireland's Eco-Friendly Products
Green Innovations: Wristbands Ireland's Eco-Friendly Products
 
Digital Marketing Training Program skills s
Digital Marketing Training Program skills sDigital Marketing Training Program skills s
Digital Marketing Training Program skills s
 
Dashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de OperacionesDashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de Operaciones
 
Benihana of Tokyo case study11111111.pdf
Benihana of Tokyo case study11111111.pdfBenihana of Tokyo case study11111111.pdf
Benihana of Tokyo case study11111111.pdf
 
A Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdfA Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdf
 
NewBase 14 March 2024 Energy News issue - 1707 by Khaled Al Awadi_compress...
NewBase  14 March  2024  Energy News issue - 1707 by Khaled Al Awadi_compress...NewBase  14 March  2024  Energy News issue - 1707 by Khaled Al Awadi_compress...
NewBase 14 March 2024 Energy News issue - 1707 by Khaled Al Awadi_compress...
 
unfinished legacy it is a clothing brand
unfinished legacy it is a clothing brandunfinished legacy it is a clothing brand
unfinished legacy it is a clothing brand
 
ICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the IndustryICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the Industry
 
L-1 VISA Business (Plan Sample) - Plan Writers
L-1 VISA Business (Plan Sample) - Plan WritersL-1 VISA Business (Plan Sample) - Plan Writers
L-1 VISA Business (Plan Sample) - Plan Writers
 
10 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 202410 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 2024
 
Wallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loanWallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loan
 
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024The Vietnam Believer_Newsletter_Vol.001_Mar12 2024
The Vietnam Believer_Newsletter_Vol.001_Mar12 2024
 
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...
Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior to...
 
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
 
The Smart Bridge Interview now Veranda Learning
The Smart Bridge Interview now Veranda LearningThe Smart Bridge Interview now Veranda Learning
The Smart Bridge Interview now Veranda Learning
 
PHX Corporate Presentation March 2024 Final
PHX Corporate Presentation March 2024 FinalPHX Corporate Presentation March 2024 Final
PHX Corporate Presentation March 2024 Final
 

Project managment 6 (a)

  • 1. Earned Value Management 4/3/2011 Earned Value Analysis Concepts Earned Value Management Earned Value Analysis “The rabbit wouldn’t have lost the race if someone informed about its performance time to time…” From old story of Rabbit & Tortoise PMP Prep Course 1
  • 2. Earned Value Management 4/3/2011 Earned Value Analysis WHAT IS EVA? EVA is basically a methodology to track 1. Project Schedule Performance 2. Project Cost Performance 3. Project Progress Earned Value Analysis  PMP Prep Course Project Schedule Performance to measure project schedule performance and determine time to complete project - i.e. measuring what is completed to date what is expected to complete 2
  • 3. Earned Value Management 4/3/2011 Earned Value Analysis  Project Cost Performance - to measure how much is spent against what is expected to be spent Earned Value Analysis Benefits of EVA 1. For project managers • • • • • PMP Prep Course Reliable project costs and schedule data for more effective decision making The relationship between cost, schedule and work achieved Ability to avoid last-minute “surprises” Early identification of potential problems Accurate prediction of project costs at completion 3
  • 4. Earned Value Management 4/3/2011 Earned Value Analysis Benefits of EVA 2. Provide ability to answer ◦ ◦ ◦ ◦ ◦ What did we get for money spent How much will the project cost to complete When will the project be complete Which activities are contributing to the cost overrun Which resources contributing to the schedule slippage Earned Value Analysis Planned Value (PV) Planned Value (PV). PV tells you what you plan to do. Planned Value = Physical Work + Approved Budget PV, also known as Budgeted Cost of Work Scheduled (BCWS) PV is categorized as: Cumulative PV is the sum of the approved budget for activities scheduled to be performed to date. Current PV is the approved budget for activities scheduled to be performed during a given period. PMP Prep Course 4
  • 5. Earned Value Management 4/3/2011 Earned Value Analysis PV example 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 – Software Design Dollars PV JAN 3000 FEB 3000 MAR 3000 APR 3000 What is current and cumulative PV? MAY 3000 As on today Earned Value Analysis The Cumulative PV is the total for the elapsed months: January – March. The cumulative PV is $9,000. The Current PV is the budget for the current month, March, and equals $3,000. Client/Server project – Software Design Dollars PV JAN 3000 FEB 3000 MAR 3000 APR 3000 MAY 3000 As on today PMP Prep Course 5
  • 6. Earned Value Management 4/3/2011 Earned Value Analysis Budget at Completion (BAC) BAC is the sum of all budgets allocated to a project scope. ◦ BAC can be obtained by work packages ◦ The Project BAC must always equal the Project Total PV. ◦ If they are not equal, your earned value calculations and analysis will be inaccurate. Earned Value Analysis What is the BAC for this project if Software Design is the complete scope of the project? Client/Server project – Software Design Dollars PV JAN 3000 FEB 3000 MAR 3000 APR 3000 MAY 3000 As on today •Yes, BAC = $15,000. And, in keeping with the previous points about BAC •The project BAC equals the Project Total PV. •The Earned Value calculations are correct. PMP Prep Course 6
  • 7. Earned Value Management 4/3/2011 Earned Value Analysis Actual Cost (AC) Actual Cost (AC), also called actual expenditures, is the cost incurred for executing work on a project.. AC is also called Actual Cost of Work Performed (ACWP). Cumulative AC is the sum of the actual cost for activities performed to date. Current AC is the actual costs of activities performed during a given period. Earned Value Analysis Cumulative AC is the sum of the actual cost for activities performed to date, and Current AC is the actual costs of activities performed during a given period. Client/Server project – Software Design PV AC Dollars JAN 3000 1100 FEB 3000 1200 MAR 3000 1500 APR 3000 MAY 3000 As on today •The Cumulative AC is the total for the elapsed months: January – March. The Cumulative AC is $3,800. •The Current AC is the actual cost for the current month, March, and equals $1,500. PMP Prep Course 7
  • 8. Earned Value Management 4/3/2011 Earned Value Analysis Earned Value (EV) EV is the quantification of the “worth” of the work done to date. EV tells us, in physical terms, what the project has accomplished. Cumulative EV is the sum of the budget for the activities accomplished to date. Current EV is the sum of the budget for the activities accomplished in a given period. Earned Value Analysis Earned Value example Client/Server project – Software Design Dollars PV AC EV JAN 3000 1100 900 FEB 3000 1200 1000 MAR 3000 1500 1200 APR 3000 MAY 3000 As on today • The Current EV is the sum of the budget for the activities accomplished in the current month, March, and equals $1,200. • The Cumulative EV is the sum of the budget for the activities accomplished to date: January – March. The cumulative EV is therefore $3,100. PMP Prep Course 8
  • 9. Earned Value Management 4/3/2011 Earned Value Analysis Client/Server project – Software Design Dollars PV AC EV JAN 3000 1100 900 Cum PV = $9,000 Cum AC = $3,800 Cum EV = $3,100 FEB 3000 1200 1000 MAR 3000 1500 1200 APR 3000 MAY 3000 As on today Current PV = $3,000 Current AC = $1,500 Current EV = $1,200 BAC = $15,000 Earned Value Analysis Actual Cost (AC) Budget At Completion (BAC) Planned Value (PV) Earned Value (EV) As On Date PMP Prep Course 9
  • 10. Earned Value Management 4/3/2011 Earned Value Analysis   Schedule Variance (SV) = (BCWP – BCWS) = (EV – PV) ◦ 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   Cost Variance (CV) = (BCWP – ACWP) = (EV – AC) ◦ A comparison of the budgeted cost of work performed with actual cost. ◦ A negative variance means the project is over budget. Earned Value Analysis  Schedule Performance Index (SPI) SPI=BCWP/BCWS = EV/PV  SPI<1 means project is behind schedule   Cost Performance Index (CPI) CPI= BCWP/ACWP = EV/AC  CPI<1 means project is over budget   Cost PMP Prep Course Schedule Index (CSI) 10
  • 11. Earned Value Management 4/3/2011 Earned Value Analysis CSI=CPI x SPI  CSI <1, the project is over budget and behind schedule  Estimate At Completion (EAC)  EAC = BAC/CPI  Estimate to Complete (ETC)  ETC = EAC – BAC  Earned Value Analysis To-Complete Performance Index (TCPI)  Is calculated projection of cost performance, must be achieved on the remaining work  That is ratio between remaining work and funds remaining  TCPI = (BAC-EV)/(BAC-AC)  PMP Prep Course 11
  • 12. Earned Value Management 4/3/2011 Earned Value Analysis A $10,000 software project is scheduled for 4 weeks. At the end of the third week, the project is 50% complete and the actual costs to date is $9,000 Planned Value (PV) = $7,500 Earned Value (EV) = $5,000 Actual Cost (AC) = $9,000 Earned Value Analysis Schedule Variance = EV – PV = $5,000 – $7,500 = - $2,500  Schedule Performance Index (SPI) = EV/PV = $5,000 / $7,500 = 0.66  Cost Variance = EV – AC = $5,000 - $9,000 = - $4,000  Cost Performance Index (CPI) = EV/AC = $5,000 / $9,000 = 0.55 The metrics indicate the project is behind schedule and over budget.  On-target projects have an SPI and CPI of 1 or greater  PMP Prep Course 12
  • 13. Earned Value Management 4/3/2011 Earned Value Analysis If the project continues at the current performance, what is the true cost of the project?  Estimate At Complete  = Budget At Complete (BAC) / CPI = $10,000 / 0.55 = $18,181 At the end of the project, the total project costs will be $18,181 Earned Value Analysis Formulas to recap: SCHEDULE COST SV = EV – PV SV = BCWP – BCWS CV = EV – AC CV = BCWP – ACWP SPI = EV / PV SPE = BCWP / BCWS CPI = EV / AC CPI = BCWP / ACWP CSI = CPI * SPI TCPI = (BAC-EV)/(BAC-AC) PMP Prep Course EAC = BAC / CPI ETC = EAC - BAC 13