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    Progress Measurement and Earned Value Aace International: Productivity

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    Sucher Eolas
    This document discusses key metrics for measuring project schedule and cost performance using earned value management. It defines schedule variance as the difference between earned work and budgeted work, and cost variance as the difference between earned work and actual costs. Positive variances and performance indices above 1.0 indicate favorable performance. Productivity is best measured by comparing actual work hours to credit work hours, which accounts for variations in work quantities between what was budgeted and actual.

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    Progress Measurement and Earned Value Aace International: Productivity

    Uploaded by

    Sucher Eolas
    51 views1 page
    This document discusses key metrics for measuring project schedule and cost performance using earned value management. It defines schedule variance as the difference between earned work and budgeted work, and cost variance as the difference between earned work and actual costs. Positive variances and performance indices above 1.0 indicate favorable performance. Productivity is best measured by comparing actual work hours to credit work hours, which accounts for variations in work quantities between what was budgeted and actual.

    Original Description:

    PRODUCTIVITY

    Original Title

    Productivity

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    This document discusses key metrics for measuring project schedule and cost performance using earned value management. It defines schedule variance as the difference between earned work and budgeted work, and cost variance as the difference between earned work and actual costs. Positive variances and performance indices above 1.0 indicate favorable performance. Productivity is best measured by comparing actual work hours to credit work hours, which accounts for variations in work quantities between what was budgeted and actual.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    51 views1 page

    Progress Measurement and Earned Value Aace International: Productivity

    Uploaded by

    Sucher Eolas
    This document discusses key metrics for measuring project schedule and cost performance using earned value management. It defines schedule variance as the difference between earned work and budgeted work, and cost variance as the difference between earned work and actual costs. Positive variances and performance indices above 1.0 indicate favorable performance. Productivity is best measured by comparing actual work hours to credit work hours, which accounts for variations in work quantities between what was budgeted and actual.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    PROGRESS MEASUREMENT AND EARNED VALUE AACE INTERNATIONAL

    Schedule variance (SV) = (earned workhours or $) - (budgeted workhours or $) = BCWP BCWS (equation 5)

    Schedule performance index (SPI) = (earned workhours or $ to date)/(budgeted workhours or $ to date) (equation 6)
    = BCWP/BCWS

    Cost variance (CV) = (earned workhours or $) - (actual workhours or $) (equation 7)


    = BCWP - ACWP

    Cost performance index (CPI) = (earned workhours or $ to date)/(actual workhours or $ to date) (equation 8)
    = BCWP/ACWP

    relationships between BCWS, BCWP, and ACWP.


    Schedule performance is a comparison of what was planned
    to what was done. In other words, workhours were budget-
    ed and earned. If the budgeted workhours are less than the PRODUCTIVITY
    earned workhours, it means more was done than planned,
    and the project is ahead of schedule. The reverse would Project managers are always interested in knowing how well
    place the project behind schedule. actual productivity (workhours/unit) compares with the fig-
    ures used in planning and budgeting the work. While a com-
    Cost performance is measured by comparing what was done parison of earned to actual workhours may appear to provide
    to the cost incurred. To do this, earned workhours are com- an evaluation of productivity, it does so only if actual quantities
    pared to actual workhours. If the cost incurred were greater of work exactly equal those budgeted. Since this is rarely the
    than what was done, the project has overrun its budget. case, another mechanism is needed to evaluate productivity.
    The above relationships are expressed by the formulas listed Credit Workhours—Credit workhours (CWH), like earned
    as equation 5, equation 6, equation 7, and equation 8. Workhours (EWH), are a derived quantity that provides a vehi-
    cle for handling work quantity variations between budgeted
    A positive variance and an index of 1.0 or greater denotes and actual without distorting crew productivity figures. CWH
    favorable performance. See Figure 14.1 for a plot showing the equals the budgeted productivity workhour unit rate

    Budgeted—BCWS

    }
    $ or Work-hours

    SV

    } CV
    P
    CW
    -B
    ed
    rn

    SV = Schedule Variance
    Ea

    P
    ACW CV = Cost Variance
    l - ΔT = Time Variance
    ctua ΔΤ
    A

    Time, Days

    Figure 14.1—Relationships Between BCWS, BCWP, and ACWP

    14.4

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