Overview | Example | Step 1 | Step 2 | Step 3 | Step 4 | Step 5 |
Earned Value Analysis - Example (Hands On)
Step 5 : Analyze EV Values
Please verify the Gantt chart, you will be see the following values.
To view Earned value, we have to apply the Earned value table to tracking gantt.
Steps
- On View menu -> Choose Tracking Gantt
- View -> Tables -> More Tables -> Earned Value -> Apply
Gantt Chart will looks like below:
Please see below for explanation of EV values obtained from example:
% Work Completed:
Originally estimated work for entire project: 80 hours
Actual work done till status date: 32 hours
Percentage of work completed with respect to original estimation: 32 hours out of 80 hours
(32 * 100)/80 = 40 %
% Completed:
Originally estimated duration of entire project: 10 days
On status date, estimated duration has been calculated: 11 days
(We had less actual work comparatively with original estimation, to complete the entire work, now required 11 days)
Out of 11 days of the work, we completed 5 days of actual work as of Status Date.
(5 * 100)/11 = 45.4545 %
Please note due to rounding, Gantt char is showing as 45 % completed
BAC:
Estimated total duration to complete project: 10 days;
Estimated work: 80 hours;
Resource hourly rate: $10
Budget cost at completion (BAC) = 80 * $10
= $800
BCWS: BCWS value is original estimated of budgeted cost till Status Date.
Originally estimated work till status date: 40 hours
Resource rate per hours: $10
Originally planned budgeted cost till status date: 40 * $10 =$400
BCWP: BCWP value is based on % completed, so the calculation of BCWP as follows:
Original planned budget for entire project: $800
Percentage of work performed till Status Date (% Completed): 45.4545 %
(45.4545 * 800) / 100 = $363.63
ACWP: ACWP values actual cost incurred till status date.
Actual work performed till status date: 32 hours
Resource rate per hours: $10
Actual cost till status date: 32 * $10 = $320
Cost Variance (CV): The difference between BCWP and ACWP
CV = $363.63 - $320
= $43.63
A positive cost variance indicates that the project is on budget
A negative cost variance indicates that the project is under budget, it means more funds need to complete the project.
Schedule Variance (SV): The difference between BCWP and BCWS
CV = $363.63 - $400
= - $36.37
A positive schedule variance indicates that the project is on time and keeping the estimated schedules
A negative schedule variance indicates that the project is behind the schedules.
Cost per Index (CPI):
CPI = Earned Value / Actual Costs
CPI = BCWP/ACWP
= $363.63/$320.00
= 1.1363
= 1.14
Schedule per Index (SPI):
SPI = Earned Value / Planned Value
CPI = BCWP/BCWS
= $363.63/$400.00
= 0.91
Estimated at Completion (EAC): Expected total cost of project based on performance as of status date.
EAC = ACWP + (BAC – BCWP) / CPI
= $320 + ($800 - $363.63 ) /1.1363
= $320 + $436.37/1.1363
= $320 + $ 384.0271
= $704.02
The complete performance index (TCPI):
TCPI = (BAC-BCWP)/(BAC-ACWP)
TCPI = ($800 - $363.63)/ ($800 - $320)
TCPI = 436.37/480
TCPI = 0.91
A TCPI value is greater than 1, implies good performance of the project
A TCPI value is less than 1, implies poor performance of the project
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