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Monitoring Project Performance Basics Calculation Comments: EV % Complete PV

This document discusses key metrics for monitoring project performance: - Earned value (EV) measures the budgeted cost of completed work and is calculated as the percentage complete multiplied by the planned value (PV). - Cost variance (CV) and cost performance index (CPI) compare actual costs to date (AC) against earned value to measure cost efficiency. - Schedule variance (SV) and schedule performance index (SPI) compare earned value to planned value to measure schedule performance. - Other metrics forecast total costs based on past performance or estimate to completion.

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Erin Yates
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16 views1 page

Monitoring Project Performance Basics Calculation Comments: EV % Complete PV

This document discusses key metrics for monitoring project performance: - Earned value (EV) measures the budgeted cost of completed work and is calculated as the percentage complete multiplied by the planned value (PV). - Cost variance (CV) and cost performance index (CPI) compare actual costs to date (AC) against earned value to measure cost efficiency. - Schedule variance (SV) and schedule performance index (SPI) compare earned value to planned value to measure schedule performance. - Other metrics forecast total costs based on past performance or estimate to completion.

Uploaded by

Erin Yates
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Monitoring Project Performance Basics

PV EV AC BAC
The planned time-phased value of the work that is scheduled Earned value is simply percent complete times its budgeted cost of the work Actual cost of the work completed The total planned value of the project Cost variance adjusted budget costs to the actual spent costs Cost performance index is a measure of cost efficiency on a project To complete performance index

Calculation
EV = % Complete * PV

Comments
MS Project: BCWS Budgeted cost of the work scheduled MS Project: BCWP Budgeted cost of the work performed MS Project: ACWP Actual cost of the work performed Budgeted cost at completion

Cost
CV CPI TCPI

CV = EV-AC CPI = EV/AC TCPI = (BAC-EV)/(BAC-AC)

Negative number indicates over budget. Positive number indicates under budget. Need to know % over budget to indicate magnitude. A value less than 1 indicates a cost overrun. A value greater than 1 indicates cost savings. CPI = .90 means we are only earning 90 cents of planned work for each dollar spent. Found on the EV Cost Indicators Table in MS Project. The amount of value each remaining dollar must earn for the project to stay within budget. A number greater than 1 means there is more work than there is budget left. A number less than 1 means there is less work than there is budget left. Found on the EV Cost Indicators Table in MS Project. Negative number indicates work that was suppose to be done at this time has not been done. Positive number indicates work that was not suppose to be done by this time has been accomplished. SV = -1,000 means $1,000 worth of work that was scheduled to be done at this time has not been accomplished. A value less than 1 indicates that work on the project is behind schedule. A value greater than 1 indicates work on the ahead of schedule. SPI = 1.10 means $1.10 worth of work has been accomplished for each $1 worth of scheduled work. Found at MS EV Schedule Indicators Table. Compare the planned early start of most recent critical activity with the actual start. Alternative compare most recent milestone date and actual milestone date. What percentage of work has been completed to date based on planned budget. A good indicator of how much of the project has been completed. Not available in MS Project. What percentage of work has been completed to date based on revised estimates of total project costs. Preferred when you have confidence in revised estimates and or budget is not fixed. Not available in MS Project. Gray & Larson refer to this as FAC or EACf. If we continue to earn ?? (CPI) on the project, how much will the total cost be? Reliability increases as PCIB or PCIC increases. ETC equals the revised estimates for remaining work. Only valid if revised estimates have been entered. Positive number indicates that the project will be completed under budget. A negative number suggests that it will be completed over budget. Gray & Larson refer to it as VACf. Preferred on large projects and when it is not practical to obtain valid revised estimates. Positive number indicates that the project will be completed under budget. A negative number suggests that it will be completed over budget.

Schedule
SV
Schedule variance: How much work that has been done compared with how much should have done at this point in time Schedule performance index is a measure of schedule efficiency on a project

SV = EV-PV

SPI

SPI = EV/PV

Critical Path PCIB PCIC

Look at current activity on the critical path or most recent milestone to see if it is on schedule Percent complete in terms of budget Percent complete in terms of expected costs

PCIB = EV/BAC PCIC = AC/EACe

Forecast
EACf EACe VAC VACe
Forecasted estimate cost at completion Revised estimate cost at completion Forecasted cost variance

EACf = AC+[(BAC-EV)/CPI] EACe = AC+ETC VAC = BAC-EACf VACe = BAC-EACe

Revised estimate cost variance

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