𝑬𝒂𝒓𝒏𝒆𝒅 𝑽𝒂𝒍𝒖𝒆 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 (𝑬𝑽𝑴)
(Source with Thanks Mostafa Elsawy )
Earned Value Analysis (EVA) allow PM to measure amount of work actually performed on project beyond basic review of cost & schedule reports
"EVM is systematic approach to cost integration & measurement, schedule & scope accomplishment on project or task" USA Department of Energy
𝐖𝐡𝐲 𝐔𝐬𝐞 𝐄𝐕𝐌?
EV helps determine if project is on schedule & within budget by assessing project on basis of cost & schedule as compared to what has been accomplished
𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐄𝐕𝐌 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬
To determine current project performance & forecast future project performance based on 3 data points:
-𝐏𝐥𝐚𝐧𝐧𝐞𝐝 𝐕𝐚𝐥𝐮𝐞 [Budgeted Cost of Work Scheduled (BCWS)]
PV can be looked at in 2 ways:
-Current: approved budget for activities scheduled to be performed during given period (days, weeks, months,etc.)
-Cumulative: sum of approved budget for activities scheduled to be performed to date
-𝐀𝐜𝐭𝐮𝐚𝐥 𝐂𝐨𝐬𝐭 [Actual Cost of Work Performed (ACWP)]
Actual expenditures incurred to execute work on project
AC can be looked at in terms of
-Current
-Cumulative
-𝐄𝐚𝐫𝐧𝐞𝐝 𝐕𝐚𝐥𝐮𝐞 [Budgeted Cost of Work Performed (BCWP)]
Work Quantification “worth” done to date
EV can be presented in
-Current
-Cumulative
𝐌𝐞𝐭𝐫𝐢𝐜𝐬 & 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐌𝐞𝐚𝐬𝐮𝐫𝐞𝐦𝐞𝐧𝐭𝐬
EV performance measurement look at project cost & schedule performance by analyzing cost & schedule variance along with cost & schedule efficiency
𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬:
-𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 (𝐒𝐕)=EV–PV
If result is +ve: On Schedule
If result is -ve: Behind Schedule
or SV% = SV/PV % Schedule varies from planned to date
-𝐂𝐨𝐬𝐭 𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 (𝐂𝐕)=EV–AC
If result is +ve: Underrun
If result is -ve: Overrun
or CV%= CV/EV %Cost varies from planned to date
𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐈𝐝𝐢𝐜𝐚𝐭𝐨𝐫𝐬:
-𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐈𝐧𝐝𝐞𝐱 (𝐒𝐏𝐈): Schedule Efficiency measure
SPI=EV/PV
If result > 1.0, project is AHEAD of schedule
If result < 1.0, project is BEHIND schedule
𝐂𝐨𝐬𝐭 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐈𝐧𝐝𝐞𝐱 (𝐂𝐏𝐈):
Cost Efficiency measure
CPI=EV/AC
If result > 1.0, cost is < budget.
If result < 1.0, cost is > budget.
𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞 𝐚𝐭 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐢𝐨𝐧 (𝐄𝐀𝐂)
Objective to provide accurate projection of cost at project completion
EAC= AC+ETC
𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞 𝐓𝐨 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐞 (𝐄𝐓𝐂)
Cost to complete authorized remaining work
EAC = AC+ETC
𝐁𝐮𝐝𝐠𝐞𝐭 𝐀𝐭 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐢𝐨𝐧 (𝐁𝐀𝐂)
All budgets sum allocated to
project scope, BAC must always equal Project total PV, If they aren't equal, EV calculation & analysis will be inaccurate
𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 𝐀𝐭 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐢𝐨𝐧 (𝐕𝐀𝐂)
VAC =BAC–EAC
If result is +ve, project is projecting an Underrun
If result is -ve, project is projecting an Overrun