Earned Value Schedule Analysis

EVT uses several formulas to analyze and monitor the project schedule. EVT formulas can be used to determine if a project is on schedule or falling behind. The formulas help the Project Manager determine whether problems or risks may arise.

Planned Value (PV) = Budgeted Cost for Work Scheduled (BCWS)

Earned Value (EV) = Budgeted Cost for Work Complete (BCWC) or Budgeted Cost for Work Performed (BCWP)

Actual Cost (AC) = Actual Cost for Work Completed (ACWC)

Schedule Variance (SV) = EV minus PV
SV will equal zero when a project is complete because all planned values will have been earned.

Schedule Performance Index (SPI) = EV divided by PV
SPI is an efficiency indicator to reflect schedule performance of a project.

You are working on a project that has a PV of $200,000, an EV of $100,000, and an AC of $150,000. What is the SV for the project? Reply to this post with your answer and a brief explanation.

Earned Value Budgetary Analysis

EVT uses several formulas to analyze and monitor the project budget. EVT formulas can be used to determine if a project is within the budget or will complete within budget. The formulas help the Project Manager determine whether problems or risks may arise.

Earned Value (EV) = Budgeted Cost for Work Complete (BCWC) or Budgeted Cost for Work Performed (BCWP)

Actual Cost (AC) = Actual Cost for Work Completed (ACWC)

Cost Variance (CV) = EV minus AC
CV at the end of a project will be the difference between the budget at completion (BAC) and the actual amount spent.

Cost Performance Index (CPI) = EV divided by AC
CPI is an efficiency indicator to reflect cost performance of a project

You are working on a project that has an EV of $100,000 and an AC of $150,000. Calculate the CPI for the project. Then determine if the project is over budget, under budget, or on budget. Reply to this post with your answer and a brief explanation.

Introduction to EVM and PMI

Most Project Managers and those interested in the field are familiar with the Project Management Institute (PMI). PMI sets the standard for Project Management. In their valuable resource, A Guide to the Project Management Body of Knowledge Third Edition (PMBOK Guide), Earned Value Management (EVM) uses the Earned Value Technique (EVT). EVT is in fact a technique of a particular process. That process belongs to a knowledge area. That knowledge area is applied to a process group (could be more than one).

Please reply to this blog with the name of the process, knowledge area, and process group(s) which EVT belongs to in accordance with PMI.

Earned Value Introduction

This blog will be used as a tool for a high tech learning experience. The topic of the experience is Earned Value Management for Project Management. This blog is part of a project linking to other resources as well. More information can be found at the following site: http://earnedvalue.wikispaces.com/.

In the series of blogs that follow, learners will be asked to contribute and exchange their experiences and knowledge with each other. There will be three other initial postings. Please respond to each and feel free to exchange frequently with other learners.

Let's get started!