If you want to buy the project management book mail
[email protected] for
more details or call any of our book shops MUMBAI-22078296/97/022-22070989,
KOLKATA-22826518/19 HYDERABAD-24756967,24756400,BANGALORE-25587923,
25584641,AHMEDABAD-26421611,BHATINA(PUNJAB)-2237387,CHENNAI-28410796,28550491,DELHI/NEWDELHI-23254990/91,23325760,26415092,24691288.If
you want to write to the author directly email at
[email protected]
Earned Value gives us three metric views for a project.
Figure: - Earned Value Metrics
Current Progress: - This shows how we are performing in the project.
Forecasting: - Will help us answer how we will do in the project in future.
How will we catch up: - In case the project is moving behind schedule or over budget how do we make up?
Current Progress metrics
Schedule Variance (SV)
Schedule variance is the difference between Earned value and planned value.
SV = EV – PV
|
SV |
Description |
|
0 |
You are on right schedule. |
|
Negative |
You are behind schedule. |
|
Positive |
You are ahead of schedule. |
Cost Variance (CV)
Cost variance is the difference between earned value and the actual cost.
CV = EV – AC
|
CV |
Description |
|
0 |
You are on right on budget. |
|
Negative |
You are over budget. |
|
Positive |
You are under budget. |
Cost performance Index (CPI)
CPI is the ratio of Earned value to Actual cost.
CPI = EV / AC
|
CPI |
Description |
|
1 |
You are right on budget. |
|
Less than 1 |
You are over budget. |
|
Greater than 1 |
You are under budget. |
Schedule performance Index
SPI is the ratio of (Earned Value) EV to (Planned Value) PV.
SPI = EV / PV
|
SPI |
Description |
|
1 |
You are right on schedule. |
|
Less than 1 |
You are behind schedule. |
|
Greater than 1 |
You are ahead of schedule. |
Forecasting
EVA helps us to also forecast our project schedule below is the metrics for the same.
|
Metric’s Name |
Description |
|
Budget at completion ( BAC ) |
This is the total original budgeted cost. It is same as the planned value. |
|
Estimate at completion ( EAC ) |
This is the final cost of the project. EAC = PV / CPI where PV is the planned value and CPI is the cost performance index. |
|
Schedule at completion ( SAC ) |
This represents the estimated duration of the project. SAC = Schedule / SPI Where schedule is the estimate schedule and SPI is the schedule performance index. |
|
VAC ( Variance at Completion ) |
It is the forecast of the final cost variance. VAC = BAC – EAC. |
How will we catch up?
This is the third view which EV gives us. If the project is not on schedule how do we catch up with the same?. EV gives us something called as To-Complete performance Index (TCPI). TCPI is in an indication of how much we should perform to meet the project schedule.
TCPI = ( Planned budget – EV ) / ( Final cost – AC )
|
TCPI |
Description |
|
Greater than 1 |
We need to perform better than the schedule. |
|
Less than 1 |
We can reach the destination with schedule. |
If you want to buy the project management book mail
[email protected] for
more details or call any of our book shops MUMBAI-22078296/97/022-22070989,
KOLKATA-22826518/19 HYDERABAD-24756967,24756400,BANGALORE-25587923,
25584641,AHMEDABAD-26421611,BHATINA(PUNJAB)-2237387,CHENNAI-28410796,28550491,DELHI/NEWDELHI-23254990/91,23325760,26415092,24691288.If
you want to write to the author directly email at
[email protected]