•5 gefällt mir•3,828 views

Melden

Teilen

Downloaden Sie, um offline zu lesen

Earned Value Analysis presentation with examples

- 1. “PMP® Certification Readiness” Training Program Module:Module: Earned Value and Budget ForecastingEarned Value and Budget ForecastingEarned Value and Budget ForecastingEarned Value and Budget Forecasting Ravikumar Kalose N, PMP® http://www.propmacademy.com 1 ProPM Academy - 2011 "PMP® Exam Prep Course"
- 2. Understanding – • Measurements - Subjective Vs Objective • What is Earned Value (EV) • Work Performance MeasurementsWork Performance Measurements • Budget Forecasts • Performance measurement parameters • Various formulae and their interpretation 2 ProPM Academy - 2011 "PMP® Exam Prep Course"
- 3. Green OR Red ? What IF…?? ? Can defend the current Project StatusAssertive Relies on assumptions, interpretations based on high level work status Lack of any measured data and facts Project Health (Red/Amber/Green) is debatable and subjective Relies on measured values derived from triple constraints – Scope, Time and Cost Project Status reported based on defined matrix Unambiguous, No Assumptions Easily understandable by Stakeholders ProPM Academy - 2011 "PMP® Exam Prep Course" 3
- 4. An objective method to measure project progress based on triple constraints (Scope, Time, Cost) EV measurements helps to determine if a project is on track EV is an indicator of current project performance Provides early warnings and trends on any cost, schedule over runs Earned Value CharacteristicsEarned Value CharacteristicsEarned Value CharacteristicsEarned Value CharacteristicsEarned Value CharacteristicsEarned Value CharacteristicsEarned Value CharacteristicsEarned Value Characteristics Earned value indicates how much of “value” you have “earned” on the project at any given point of time. Helps determine variance against Planned Value (PV). ProPM Academy - 2011 "PMP® Exam Prep Course" 4
- 5. Let us consider the following example to understand the concepts better An ERP implementation project for ABC company is estimated to cost $500,000 with an estimated duration of 40 weeks.At the end of 10 weeks the project is 20% complete withthe end of 10 weeks the project is 20% complete with $150,000 being already spent on the project. BAC =500,000,AC = 150,000 PV = 10/40*500,000 = 125,000 EV = 20/100*500,000 = 100,000 ProPM Academy - 2011 "PMP® Exam Prep Course" 5
- 6. ProPM Academy - 2011 "PMP® Exam Prep Course" 6
- 7. BAC = 500,000BAC = 500,000BAC = 500,000BAC = 500,000 PV = 125,000PV = 125,000PV = 125,000PV = 125,000 EV = 100,000EV = 100,000EV = 100,000EV = 100,000 AC = 150,000AC = 150,000AC = 150,000AC = 150,000 MetricMetricMetricMetric FormulaFormulaFormulaFormula ValueValueValueValue AnalysisAnalysisAnalysisAnalysis CV EV-AC -50,000 This indicates $50,000 has already been additionally spent in excess of the project worth of work up-to this point ProPM Academy - 2011 "PMP® Exam Prep Course" 7 SV EV-PV -25000 The negative value indicates the project is lagging behind its planned schedule. CPI EV/AC 0.67 A value less than 1 indicates over utilization of funds against the actual work. In this case the project is earning $0.67 worth value for every $ spent, not a good sign. SPI EV/PV 0.80 A value less than 1 indicates that the project is behind planned schedule and progress has only been at 80% .
- 8. SV CV ProPM Academy - 2011 "PMP® Exam Prep Course" 8
- 9. MetricMetricMetricMetric FormulaFormulaFormulaFormula ValueValueValueValue AnalysisAnalysisAnalysisAnalysis EAC BAC/CPI 746,268.65 The revised estimates now for project completion based on current performance is $746,268.65 as against planned $500,000. BAC = 500,000BAC = 500,000BAC = 500,000BAC = 500,000 PV = 125,000PV = 125,000PV = 125,000PV = 125,000 EV = 100,000EV = 100,000EV = 100,000EV = 100,000 AC = 150,000AC = 150,000AC = 150,000AC = 150,000 CV = -50,000 SV = -25,000 CPI = 0.67 SPI = 0.80 ETC EAC-AC 596,268.65 The project would now require $596,268.65 to complete VAC BAC-EAC -246,268.65 There is an additional $246,268.65 required to complete the project compared to original estimates TCPI (BAC-EV)/(BAC-AC) (WORK LEFT TO DO)/ MONEY REMAINING) 1.14 The project need to now perform at 1.14 times in order to stay within the estimated budget ProPM Academy - 2011 "PMP® Exam Prep Course" 9
- 10. Terminology Description Formula Budget At CompletionBudget At CompletionBudget At CompletionBudget At Completion (BAC)(BAC)(BAC)(BAC) The original estimated (planned) project CostThe original estimated (planned) project CostThe original estimated (planned) project CostThe original estimated (planned) project Cost NoneNoneNoneNone Planned Value (PV)Planned Value (PV)Planned Value (PV)Planned Value (PV) Indicates amount of work which “SHOULD haveIndicates amount of work which “SHOULD haveIndicates amount of work which “SHOULD haveIndicates amount of work which “SHOULD have been completed” or “Authorized work forbeen completed” or “Authorized work forbeen completed” or “Authorized work forbeen completed” or “Authorized work for completion” as per plan at any pointcompletion” as per plan at any pointcompletion” as per plan at any pointcompletion” as per plan at any point PV=Planned %PV=Planned %PV=Planned %PV=Planned % complete X BACcomplete X BACcomplete X BACcomplete X BAC Earned Value (EV)Earned Value (EV)Earned Value (EV)Earned Value (EV) Actual work that is accomplished at any pointActual work that is accomplished at any pointActual work that is accomplished at any pointActual work that is accomplished at any point EV= Actual %EV= Actual %EV= Actual %EV= Actual % ProPM Academy - 2011 "PMP® Exam Prep Course" 10 Earned Value (EV)Earned Value (EV)Earned Value (EV)Earned Value (EV) Actual work that is accomplished at any pointActual work that is accomplished at any pointActual work that is accomplished at any pointActual work that is accomplished at any point EV= Actual %EV= Actual %EV= Actual %EV= Actual % complete X BACcomplete X BACcomplete X BACcomplete X BAC Actual Cost (AC)Actual Cost (AC)Actual Cost (AC)Actual Cost (AC) The actual money spent at any point of timeThe actual money spent at any point of timeThe actual money spent at any point of timeThe actual money spent at any point of time AC= CumulativeAC= CumulativeAC= CumulativeAC= Cumulative money spent till datemoney spent till datemoney spent till datemoney spent till date Cost Variance (CV)Cost Variance (CV)Cost Variance (CV)Cost Variance (CV) The difference between howThe difference between howThe difference between howThe difference between how much was actuallymuch was actuallymuch was actuallymuch was actually EarnedEarnedEarnedEarned and how muchand how muchand how muchand how much was awas awas awas actually spentctually spentctually spentctually spent CV=EVCV=EVCV=EVCV=EV----ACACACAC ScheduleScheduleScheduleSchedule Variance (SV)Variance (SV)Variance (SV)Variance (SV) The difference between plannedThe difference between plannedThe difference between plannedThe difference between planned schedule Vsschedule Vsschedule Vsschedule Vs Actual ScheduleActual ScheduleActual ScheduleActual Schedule SV = EVSV = EVSV = EVSV = EV----PVPVPVPV
- 11. TerminologyTerminologyTerminologyTerminology DescriptionDescriptionDescriptionDescription FormulaFormulaFormulaFormula CostCostCostCost Performance IndexPerformance IndexPerformance IndexPerformance Index (CPI)(CPI)(CPI)(CPI) Indicates the projectIndicates the projectIndicates the projectIndicates the project performance for every $performance for every $performance for every $performance for every $ spentspentspentspent CPCPCPCPI = EV / ACI = EV / ACI = EV / ACI = EV / AC Schedule PerformanceSchedule PerformanceSchedule PerformanceSchedule Performance Index (SPI)Index (SPI)Index (SPI)Index (SPI) Indicate actualIndicate actualIndicate actualIndicate actual schedule progress of theschedule progress of theschedule progress of theschedule progress of the against the planned scheduleagainst the planned scheduleagainst the planned scheduleagainst the planned schedule SPI = EV / PVSPI = EV / PVSPI = EV / PVSPI = EV / PV Estimate At CompletionEstimate At CompletionEstimate At CompletionEstimate At Completion (EAC)(EAC)(EAC)(EAC) TheTheTheThe revised project Budget for completionrevised project Budget for completionrevised project Budget for completionrevised project Budget for completion based on current performance indicatorsbased on current performance indicatorsbased on current performance indicatorsbased on current performance indicators EAC = BAC /EAC = BAC /EAC = BAC /EAC = BAC / Cumulative CPICumulative CPICumulative CPICumulative CPI Estimate To CompleteEstimate To CompleteEstimate To CompleteEstimate To Complete (ETC)(ETC)(ETC)(ETC) How much more (cost)How much more (cost)How much more (cost)How much more (cost) would be needed towould be needed towould be needed towould be needed to complete the project based on currentcomplete the project based on currentcomplete the project based on currentcomplete the project based on current performance indicatorsperformance indicatorsperformance indicatorsperformance indicators ETC = EACETC = EACETC = EACETC = EAC –––– ACACACAC Variance At CompletionVariance At CompletionVariance At CompletionVariance At Completion (VAC)(VAC)(VAC)(VAC) TheTheTheThe difference between the budgeted costdifference between the budgeted costdifference between the budgeted costdifference between the budgeted cost and revised estimates based on currentand revised estimates based on currentand revised estimates based on currentand revised estimates based on current performance indicatorsperformance indicatorsperformance indicatorsperformance indicators VAC = BACVAC = BACVAC = BACVAC = BAC –––– EACEACEACEAC ToToToTo----CompleteCompleteCompleteComplete Performance Index (TCPI)Performance Index (TCPI)Performance Index (TCPI)Performance Index (TCPI) ProjectProjectProjectProject Performance required to be achievedPerformance required to be achievedPerformance required to be achievedPerformance required to be achieved in order to stay within the original budgetin order to stay within the original budgetin order to stay within the original budgetin order to stay within the original budget using the remaining fundsusing the remaining fundsusing the remaining fundsusing the remaining funds TCPI = (BACTCPI = (BACTCPI = (BACTCPI = (BAC----EV) /EV) /EV) /EV) / (BAC(BAC(BAC(BAC----AC)AC)AC)AC) ProPM Academy - 2011 "PMP® Exam Prep Course" 11
- 12. Variance Value (SV, CV, VAC) :Variance Value (SV, CV, VAC) :Variance Value (SV, CV, VAC) :Variance Value (SV, CV, VAC) : If Negative, it is below planned performance, If Positive, it is above planned performance If Zero, it is exactly meeting the planned performance Performance Index (CPI,SPI):Performance Index (CPI,SPI):Performance Index (CPI,SPI):Performance Index (CPI,SPI): If the Value is less than 1, it is below planned performance If the Value is more than 1, it is above planned performance ProPM Academy - 2011 "PMP® Exam Prep Course" 12 planned performance If the Value is equal to 1, it is exactly meeting the planned performance TCPI:TCPI:TCPI:TCPI: If the Value is Less than 1, it is above planned performance If the Value is more than 1, it is below planned performance If the Value is Equal to 1, it is exactly meeting the planned performance
- 13. ProPM Academy - 2011 "PMP® Exam Prep Course" 13 http://www.propmacademy.com Learn, Apply, Deliver, Succeed
- 14. Thank You ProPM Academy - 2011 "PMP® Exam Prep Course" 14 Thank You