Scribd
Upload
132 views8 pages

Project Management Using Earned Value Analysis

Earned value analysis (EVA) is a project management technique that measures project performance and progress. It calculates metrics like planned value, earned value, actual cost, cost performance index, and schedule performance index to identify if a project is on budget and on schedule. EVA provides improved project visibility, early identification of potential problems, objective assessment of performance, improved decision making, and increased stakeholder confidence. The key steps are establishing a baseline, tracking progress, calculating metrics, analyzing results, and taking corrective action if needed. Tools are available to automate the EVA process and provide reports.

Uploaded by

ablegiunging
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
132 views8 pages

Project Management Using Earned Value Analysis

Earned value analysis (EVA) is a project management technique that measures project performance and progress. It calculates metrics like planned value, earned value, actual cost, cost performance index, and schedule performance index to identify if a project is on budget and on schedule. EVA provides improved project visibility, early identification of potential problems, objective assessment of performance, improved decision making, and increased stakeholder confidence. The key steps are establishing a baseline, tracking progress, calculating metrics, analyzing results, and taking corrective action if needed. Tools are available to automate the EVA process and provide reports.

Uploaded by

ablegiunging
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 8

Studio

Shodwe

PROJECT
MANAGEMENT USING
EARNED VALUE
ANALYSIS
Presented by: Group 3 G. Ladies
Cantor, Rhea
Calapuan, AJ
Centillas, Jessica
Daguil, Jinx
Esparago, Angela
Earned Value Analysis
-is a project management technique used to measure project progress
and identify potential problems early on.

EVA Key Metrics


Planned Value (PV): The planned cost or budget for each task or work package at a specific point in time.

Earned Value (EV): The value of work that has been completed at a specific point in time.

Actual Cost (AC): The actual cost of work that has been completed at a specific point in time.
Cost Performance Index CPI = EV / AC.-A CPI of 1.0 indicates that the project is on budget. A CPI of less than 1.0
(CPI): indicates that the project is over budget.

SPI = EV / PV. An SPI of 1.0 indicates that the project is on schedule. An SPI of Schedule Performance
less than 1.0 indicates that the project is behind schedule. Index (SPI)
Task Budgeted Cost (₱) Actual Cost (₱) Earned Value (₱) Cost Variance (₱) Schedule Variance (₱)

User registration and login 100,000 120,000 80,000 -40,000 -20,000

Profile management 50,000 40,000 30,000 10,000 -20,000

Product browsing and


200,000 250,000 150,000 -100,000 -50,000
ordering

Payment processing 150,000 130,000 110,000 20,000 -40,000

Order tracking 100,000 80,000 70,000 20,000 -30,000

Customer support 300,000 320,000 260,000 -60,000 -40,000

Totals 1,000,000 940,000 700,000 -240,000 -200,000


VARIANCE
CV = EV - AC. A CV of 0 indicates that the project is on budget. A
Cost Variance CV of less than 0 indicates that the project is over budget. A CV of
(CV) greater than 0 indicates that the project is under budget.

SV = EV - PV. An SV of 0 indicates that the project is on schedule. An SV of


less than 0 indicates that the project is behind schedule. An SV of greater Schedule
than 0 indicates that the project is ahead of schedule. Variance (SV)
IMPROVED PROJECT VISIBILITY AND TRANSPARENCY

EARLY IDENTIFICATION OF POTENTIAL PROBLEMS

OBJECTIVE ASSESSMENT OF PROJECT PERFORMANCE

IMPROVED DECISION-MAKING

INCREASED STAKEHOLDER CONFIDENCE


EVA STEPS
01 Establish a project baseline. This is the original plan for the project, including the scope, schedule, and budget.

02 Track progress regularly. This involves collecting data on the actual cost and progress of work completed.

03 Calculate EVA metrics. This involves using the formulas above to calculate CPI, SPI, CV, and SV.

04 Analyze EVA results. This involves interpreting the EVA metrics to identify trends and potential problems.
05 Take corrective action. This involves taking steps to address any problems identified during the analysis.
EVA TOOL
THERE ARE A NUMBER OF EVA TOOLS AVAILABLE TO HELP PROJECT MANAGERS IMPLEMENT AND USE
EVA. THESE TOOLS CAN AUTOMATE THE CALCULATION OF EVA METRICS AND PROVIDE REPORTS AND
CHARTS TO HELP PROJECT MANAGERS VISUALIZE PROJECT PERFORMANCE.

EVA CONCLUSION- BY USING EVA, PROJECT MANAGERS CAN IDENTIFY AND ADDRESS POTENTIAL
PROBLEMS EARLY ON, MAKE INFORMED DECISIONS, AND INCREASE STAKEHOLDER CONFIDENCE.

You might also like