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    Earned Value

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    Dan Oakes
    Earned value analysis is a method that integrates cost, time, and scope to measure project performance and forecast future completion dates. It compares planned value, earned value, and actual cost to calculate variances and performance indexes that indicate if a project is on budget and on schedule. Key terms include planned value, earned value, actual cost, budget at completion, estimate at completion, and estimate to complete.

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    Earned Value

    Uploaded by

    Dan Oakes
    77 views1 page
    Earned value analysis is a method that integrates cost, time, and scope to measure project performance and forecast future completion dates. It compares planned value, earned value, and actual cost to calculate variances and performance indexes that indicate if a project is on budget and on schedule. Key terms include planned value, earned value, actual cost, budget at completion, estimate at completion, and estimate to complete.

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    Earned value analysis is a method that integrates cost, time, and scope to measure project performance and forecast future completion dates. It compares planned value, earned value, and actual cost to calculate variances and performance indexes that indicate if a project is on budget and on schedule. Key terms include planned value, earned value, actual cost, budget at completion, estimate at completion, and estimate to complete.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    77 views1 page

    Earned Value

    Uploaded by

    Dan Oakes
    Earned value analysis is a method that integrates cost, time, and scope to measure project performance and forecast future completion dates. It compares planned value, earned value, and actual cost to calculate variances and performance indexes that indicate if a project is on budget and on schedule. Key terms include planned value, earned value, actual cost, budget at completion, estimate at completion, and estimate to complete.

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    EARNED VALUE ANALYSIS

    (You may use this for exam questions!) Earned value analysis is a method to measure scope, time and project performance. Many project managers manage their project performance by comparing planned to actual results. With this method, you could easily be on time but overspend according to your plan. A better method is earned value because it integrates cost, time and scope and can be used to forecast future performance and project completion dates. TERMS TO KNOW TERM DESCRIPTION PV EV AC BAC EAC ETC VAC Planned Value Earned Value Actual Cost Budget at Completion Estimate at Completion Estimate to Complete Variance at Completion

    INTERPRETATION What is the estimated value of the work planned to be done? What is the estimated value of the work actually accomplished? What is the actual cost incurred? How much did you BUDGET for the TOTAL JOB? What do we currently expect the TOTAL project to cost? From this point on, how much MORE do we expect it to cost to finish the job? How much over or under budget do we expect to be at the end of the project?

    FORMULAS AND INTERPRETATIONS NAME FORMULA Cost Variance (CV) EV AC Schedule Variance (SV) Cost Performance Index (CPI) Schedule Performance Index (SPI) Estimate At Completion (EAC) Note: There are many ways to calculate EAC. The first formula to the right is the one most often asked on the exam. EV PV EV AC EV PV

    INTERPRETATION NEGATIVE is over budget, POSITIVE is under budget NEGATIVE is behind schedule, POSITIVE is ahead of schedule I am getting $___ out of every $1. I am (only) progressing at ___% of the rate originally planned. As of now, how much do we expect the total project to cost $___? See formulas as left. Used if no variances from the BAC have occurred or you will continue at the same rate of spending. Actual plus a new estimate for remaining work. Used when original estimate was fundamentally flawed. Actual to date plus remaining budget. Used when current variances are thought to be atypical of the future. Actual to date plus remaining budget modified by performance. Used when current variances are thought to be typical of the future. How much more will the project cost? How much over budget will we be at the end of the project?

    BAC CPI

    AC + ETC

    AC + BAC EV

    AC + (BAC EV) CPI

    Estimate To Complete (ETC) Variance At Completion (VAC)

    EAC AC BAC EAC

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