COMPG 07 Project Management Earned Value EV Lecture

  • Slides: 15
Download presentation
COMPG 07: Project Management Earned Value (EV) Lecture 3 Graham Collins, UCL graham. collins@ucl.

COMPG 07: Project Management Earned Value (EV) Lecture 3 Graham Collins, UCL graham. collins@ucl. ac. uk

Example iterative project Iteration Month Planned Costs 1 1 5000 2 2 8000 3

Example iterative project Iteration Month Planned Costs 1 1 5000 2 2 8000 3 3 7000 4 4 12000 5 5 14000

Question After 5 months, it is found that activities 1 -4 have been completed,

Question After 5 months, it is found that activities 1 -4 have been completed, and that the spend is £ 36000. Using a measure that simply looked at spend, the target was to have completed five activities during this time and therefore the spend should be £ 46000

Calculating Earned Value is ‘earned’ by the completion of activities and the budget for

Calculating Earned Value is ‘earned’ by the completion of activities and the budget for each activity is the value it has earned. In this case it would be the sum of the budgets for the activities 1 -4 ie £ 32000

Array of Measures Actual spend £ 36000 Planned spend £ 46000 Earned value £

Array of Measures Actual spend £ 36000 Planned spend £ 46000 Earned value £ 32000

cpi Cost performance indicator =earned value/actual spend =32000/36000 =0. 889 Estimated cost at completion

cpi Cost performance indicator =earned value/actual spend =32000/36000 =0. 889 Estimated cost at completion =original budget/cpi =£ 46000/0. 889 =£ 51000 approx (Note that the variance between earned value and actual is £ 4000)

spi Schedule performance indicator =earned value/planned =32000/46000 =0. 696 Estimated time of completion=Original time

spi Schedule performance indicator =earned value/planned =32000/46000 =0. 696 Estimated time of completion=Original time estimate/spi =5 months/0. 696 =7. 2 months (Note variance was £ 14000 between what was earned and planned)

Exercise Month Planned costs Actual costs 1 2 3 4 5 6 50 60

Exercise Month Planned costs Actual costs 1 2 3 4 5 6 50 60 70 90 100 90 40 50 60 90 110 70 iterations complete 0. 5 1. 5 2 2. 5 3 3. 5 The plan was to complete one iteration per month

Planned in comparison to Actual

Planned in comparison to Actual

Earned Value in relation to Planned costs and Actual costs

Earned Value in relation to Planned costs and Actual costs

Variance

Variance

Exercise Should variance ie cpi and spi be plotted based on cumulative figures or

Exercise Should variance ie cpi and spi be plotted based on cumulative figures or per month? Recalculate based on monthly values

Variance tracked on a monthly basis

Variance tracked on a monthly basis

spi q Note calculations for spi have used spic or cost. In the original

spi q Note calculations for spi have used spic or cost. In the original example spic was EV/planned = 32/46=0. 696 q Final time to complete=original time estimate/spic 5 months/0. 696 = 7. 2 months q spit or time is 4/5 (ie 4 months over 5) =0. 8 therefore final time = 5 months/0. 8 =6. 25 months

Further reading Agile & Iterative Development: A Manager’s guide Craig Larman 2004 Addison-Wesley (Agile

Further reading Agile & Iterative Development: A Manager’s guide Craig Larman 2004 Addison-Wesley (Agile Software Development Series) ISBN: 0 -13 -111155 -8

EARNED VALUE Earned Value Management Systems Earned ValueEARNED VALUE Earned Value Management Systems Earned Value
Earned Value Management EVM Earned Value Management PlannedEarned Value Management EVM Earned Value Management Planned
Computing Earned Value 1 Earned Value Analysis EVAComputing Earned Value 1 Earned Value Analysis EVA
Earned Schedule and Earned Value Management The trendEarned Schedule and Earned Value Management The trend
Earned Value Analysis by John Cornman Introduction EarnedEarned Value Analysis by John Cornman Introduction Earned
Project Management Monitoring and Controlling Earned Value AnalysisProject Management Monitoring and Controlling Earned Value Analysis
Collaborative Project Progress Tracking and Earned Value ManagementCollaborative Project Progress Tracking and Earned Value Management
IS YOUR PROJECT READY FOR EARNED VALUE MANAGEMENTIS YOUR PROJECT READY FOR EARNED VALUE MANAGEMENT
Collaborative Project Progress Tracking and Earned Value ManagementCollaborative Project Progress Tracking and Earned Value Management
Earned Value Management a tool for project PortfolioEarned Value Management a tool for project Portfolio
Earned Value Management Tutorial Module 3 Project SchedulingEarned Value Management Tutorial Module 3 Project Scheduling
Earned Value Project Management Instructors Tony Corridore PMPEarned Value Project Management Instructors Tony Corridore PMP
UCLAPM Principles of Project Management Earned Value EVUCLAPM Principles of Project Management Earned Value EV
Earned Value Management A management technique to AssessEarned Value Management A management technique to Assess