25-26 Earned Value Management PM1 Unit 5

Earned Value Managment 24-25

Project Mgmt. 1

What is Earned Value Management (EVM)

​A metholody to measure progress and performance using 3 key numbers: PV, EV and AC

1. BAC (Budget At Completion) is simply the TOTAL Approved Budget!

2. PV The project's Planned Value (Total Budget point in time X % of completion)

3. EV The project's Earned Value (Current Work Complete % x Task Budget PV)

4. AC The project's Actual Cost (add all the money spent with receipts)

5. TCPI To Complete Performance Index (a ration or % of money needed to finish)
   

Multiple Choice

Calculate a project's EV if Task Budget is $500 and the % Completion is 20% (EV actual complete times budget)

• $25

• $50

• $100

• $300

Multiple Choice

A team has a budget of $1,500 that is 40% complete. During the 3-month timeline, the team planned to spend $500 each month. At the end of the FIRST MONTH, the team evaluates its progress. What is the planned value at this time?

Total Budget = $1,500

Timeline = 3 Months

• $500

• $1,000

• $300

• $600

Givens will be EV, PV, and/or AC. (at least 2 must be given)

• EVM Calculations about Money:

  • Cost Variance (CV);

  • Cost Performance Index (CPI)

• EVM Calculations about Time:

  • Schedule Variance (SV);

  • Schedule Performance Index
    
    

• Money Formulas:

  • CV=EV-AC

  • CPI=EV/AC

• EVM Calculations about Time:

  • SV=EV-PV

  • SPI=EV/PV
    
    

Calculations You Will Make

The 4 Key EVM Calculations and Interpretations

Memory Techniques
NOTE: All Variance (Difference) problems REQUIRE subtracting resulting in 0, more than 0 or less than 0

Variance Cost and Schedule Calculations

• Cost Variance (CV) ~ CV=EV-AC

• ScheduleVariance (SV) ~ SV=EV-PV

​Children Eat Apples

​Someone Else's Problem

Multiple Choice

The Planned Value (PV) for a project is $20,000, the Earned Value (EV) is $12,000, and the Actual Cost (AC) is $15,000.

What is the Schedule Variance (SV)?

• $-8,000

• $-5,000

• $0

• $3,000

Multiple Choice

The Planned Value (PV) for a project is $20,000, the Earned Value (EV) is $12,000, and the Actual Cost (AC) is $15,000.

What is the Cost Variance (CV)?

• $5,000

• $-3,000

• $0

• $3,000

Cost: A CV of $0 or More is on budget or over budget (We want a CV of $0 or higher)

Schedule: A SV of 0 or More is on schedule or ahead of schedule (we want a SV of 0 or higher)

​

Interpreting of SV and CV Results

Match

Match the following

• SV= $12,000

• CV = $-3,000

• CV = $1,250

• SV = $0

• SV=$-5,000

Ahead of Schedule

Over Budget

Under Budget

On Schedule

Behind Schedule

• Ahead of Schedule

• Over Budget

• Under Budget

• On Schedule

• Behind Schedule

Memory Techniques
NOTE: All Index(ratio) REQUIRE division result in 1, more 1, less 1

Performance Index Cost & Schedule Calculations

• Cost Performance Index (CPI) ~ CPI=EV/AC Children Eat Apples

• Schedule Performance Index (SPI) ~ CPI=EV/AC Someone Else's Problem

​​Children Eat Apples

Someone Else's Problem

Multiple Choice

A school is organizing a science fair with a total budget at completion of $10,000. The planned value at the end of week 3 is $7,000. They are 50% of the way through. This is an earned value of $5,000. Based on this information what is this project's SPI?

• 0.71

• 0.50

• $-2,000

• $-1,000

Multiple Choice

A school is organizing a science fair with a total budget at completion of $10,000. The planned value at the end of week 3 is $7,000. They are 50% of the way through. This is an earned value of $5,000. The team has spent $6000 so far. Based on this information what is this project's CPI?

• $-2,000

• 0.71

• 0.83

• $-1,000

Cost: A CPI of 1 or More On Budget or Under budget (we want 1 or more CPI)

Schedule: A SPI of 1 or More is On schedule or ahead of schedule

​

Interpreting of CPI and SPI Results

Match

Match the following

• Earned Value Management (EVM)

• Planned Value (PV)

• Budget At Completion (BAC)

• Earned Value (EV)

• Actual Cost (AC)

Tracks progress using EV, PV and AC

Planned Completion % x Total Budget

Total budget approved for a project

Actual Completion % x Total Budget

Money that you have spent-receipt proof

• Tracks progress using EV, PV and AC

• Planned Completion % x Total Budget

• Total budget approved for a project

• Actual Completion % x Total Budget

• Money that you have spent-receipt proof

Match

Match the following

• CPI = 1.0

• SPI = 0.85

• CPI = 1.98

• SPI = 1.0

• SPI = 1.91

On Budget

Behind Schedule

Under Budget

On Schedule

Ahead of Schedule

• On Budget

• Behind Schedule

• Under Budget

• On Schedule

• Ahead of Schedule

Summary

Earned Value Managment (Involves EV, PV, AC)

Good Outcomes are POSITIVE numbers and use words Under Budget and Ahead of Schedule.

When you calculate Variances You SUBTRACT! <=$0>= answers expected. Positive is good

When you calculate Indexes you DIVIDE! <=1>= answers expected.

Multiple Choice

A 7-day project has a total budget of $3,000. At the end of the 4th day, the project is 60% complete. What is the project's earned value at the end of the fourth day?

• $1,200

• $1,500

• $1,800

• $2,400

Drag and Drop

The definition of Earned Value Management will contain which 3 of the following?

(List your answers in alphabetical order)​ ​

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Drag these tiles and drop them in the correct blank above

SPI

CPI

CV

SV

BAC

Actual Cost (AC)

Earned Value (EV)

Planned Value (PV)

Drag and Drop

The 4 Key Earned Value Management formulas begin with which value?​ ​

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Drag these tiles and drop them in the correct blank above

Earned Value (EV)

Planned Value (PV)

Actual Cost (AC)

SPI

CPI

CV

SV

Drag and Drop

The formula for Schedule Variance (SV) is calculated by ​

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​ ​

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​

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Drag these tiles and drop them in the correct blank above

Earned Value (EV)

Actual Cost (AC)

SPI

CPI

CV

SV

/

-

Planned Value (PV)

Drag and Drop

The formula for the Schedule Performance Index(SPI) is calculated by ​

Placeholder

​

Placeholder

​

Placeholder

Drag these tiles and drop them in the correct blank above

Earned Value (EV)

Planned Value (PV)

Actual Cost (AC)

SPI

CPI

CV

SV

/

-

Drag and Drop

The formula for the Cost Variance (CV) is calculated by ​

Placeholder

​

Placeholder

​

Placeholder

Drag these tiles and drop them in the correct blank above

Earned Value (EV)

Planned Value (PV)

Actual Cost (AC)

SPI

CPI

CV

SV

-

/

Drag and Drop

The formula for the Cost Performance Index(CPI) is calculated by ​

Placeholder

​

Placeholder

​

Placeholder

Drag these tiles and drop them in the correct blank above

Earned Value (EV)

Planned Value (PV)

Actual Cost (AC)

SPI

CPI

CV

SV

 / 

-