Project Management Central

Please login or join to subscribe to this thread

Topics: Cost Management, Earned Value Management
Quick Question
Network:28



please explain to me what this situation mean:
1. If both ( SV, CV ) 0 but SV way less than CV ?
2. If both ( SV, CV ) 0 but CV way less than SV ?
3. If both ( SV, CV ) 0.... but SV equal CV ?
thank you
Sort By:
Page: 1 2 next>
Network:95



SV 0 means the project is behind schedule
SV 0 means the project is ahead of schedule
CV 0 means the project is over budget
CV 0 means the project is under budget

SV or CV 0 is bad (behind schedule, over budget)
SV or CV 0 is good (ahead of schedule, under budget)
...
1 reply by Moutaz Tarbin
Sep 15, 2018 3:42 PM
Moutaz Tarbin
...
I'm sorry my keyboard didn't catch that, I mean:
1. If both ( SV, CV ) Are negative, but SV way less than CV ?
2. If both ( SV, CV ) Are negative but CV way less than SV ?

what is the project performance status for the work that already done in each case?
thank you much Eric
Network:4250



Agreed with Eric
Network:28



Sep 15, 2018 9:46 AM
Replying to Eric Isom
...
SV 0 means the project is behind schedule
SV 0 means the project is ahead of schedule
CV 0 means the project is over budget
CV 0 means the project is under budget

SV or CV 0 is bad (behind schedule, over budget)
SV or CV 0 is good (ahead of schedule, under budget)
I'm sorry my keyboard didn't catch that, I mean:
1. If both ( SV, CV ) Are negative, but SV way less than CV ?
2. If both ( SV, CV ) Are negative but CV way less than SV ?

what is the project performance status for the work that already done in each case?
thank you much Eric
...
2 replies by Eric Isom and Moutaz Tarbin
Sep 15, 2018 6:18 PM
Moutaz Tarbin
...
regardless of EV value, we can say:
1.means that today we've paid more than what we plan so AC exceeded the planned value(Pv), so SPI greater than CPI, as well as both, are bad.
2.means that at the moment we've been paid less than what we plan to pay, so AC is less than PV, and we've control on the cost more than our control on schedule CPI is greater than SPI(although both is bad because they're less than 1)
Am I right?
Sep 17, 2018 3:47 AM
Eric Isom
...
If SV is way less than CV, it simply means that the schedule variance is not as bad as the cost variance.

For example, if SV = - $10,000 and CV = - $100,000 on a $500,000 project, then the project is a bit behind schedule, but way over budget.

Similarly, if SV = - $100,000 and CV = - $10,000, then the project is way behind schedule, but just a bit over budget.
Network:28



Sep 15, 2018 3:42 PM
Replying to Moutaz Tarbin
...
I'm sorry my keyboard didn't catch that, I mean:
1. If both ( SV, CV ) Are negative, but SV way less than CV ?
2. If both ( SV, CV ) Are negative but CV way less than SV ?

what is the project performance status for the work that already done in each case?
thank you much Eric
regardless of EV value, we can say:
1.means that today we've paid more than what we plan so AC exceeded the planned value(Pv), so SPI greater than CPI, as well as both, are bad.
2.means that at the moment we've been paid less than what we plan to pay, so AC is less than PV, and we've control on the cost more than our control on schedule CPI is greater than SPI(although both is bad because they're less than 1)
Am I right?
...
2 replies by Eric Isom and Rami Kaibni
Sep 17, 2018 1:19 AM
Rami Kaibni
...
That is not exactly right, if one is more less than the other or greater, that doesn’t mean a lot as you need other indicators to draw conclusions, EV is not enough.

1- You can’t ignore EV
2- The variances are not measured on daily basis unless you are working on a very small project.

PV = BCWS = Budgeted Cost of Work Scheduled.
EV = BCWP = Budgeted Cost of Work Planned.
AC = ACWP = Actual Cost of Work Performed.

When EV = AC = Project at Budget (AC EV = Project Above Budget)
When EV = PV = Project at Schedule (PV EV = Project Behind Schedule)

If project is way below or way above budget and/or schedule then there is something off with the estimates.

On a side note, if you are within schedule and budget, Earned Value does not tell you if you are delivering value or not. This is just am additional note.
Sep 17, 2018 4:20 AM
Eric Isom
...
CV = EV - AC
SV = EV - PV

CV and SV do not compare AC to PV, so with CV 0 and SV 0, AC could be less than PV, or it could be more than PV. The key to Earned Value Analysis is that it separates the cost and schedule variances. If you try to compare AC to PV, then you can be misled into thinking that all is well when it is not, or that the project is in trouble when it is not. For example, if your project is ahead of schedule, your costs might be more than you had planned at that moment, but less than you had planned for the amount of work done. So, you need to look at CV and SV separately to understand what is going on, whether you need to intervene, and where.

For a thorough explanation of Earned Value, including 100 sample questions, you can get my book on Amazon at http://a.co/d/77BGlYD
Network:103306



Sep 15, 2018 6:18 PM
Replying to Moutaz Tarbin
...
regardless of EV value, we can say:
1.means that today we've paid more than what we plan so AC exceeded the planned value(Pv), so SPI greater than CPI, as well as both, are bad.
2.means that at the moment we've been paid less than what we plan to pay, so AC is less than PV, and we've control on the cost more than our control on schedule CPI is greater than SPI(although both is bad because they're less than 1)
Am I right?
That is not exactly right, if one is more less than the other or greater, that doesn’t mean a lot as you need other indicators to draw conclusions, EV is not enough.

1- You can’t ignore EV
2- The variances are not measured on daily basis unless you are working on a very small project.

PV = BCWS = Budgeted Cost of Work Scheduled.
EV = BCWP = Budgeted Cost of Work Planned.
AC = ACWP = Actual Cost of Work Performed.

When EV = AC = Project at Budget (AC EV = Project Above Budget)
When EV = PV = Project at Schedule (PV EV = Project Behind Schedule)

If project is way below or way above budget and/or schedule then there is something off with the estimates.

On a side note, if you are within schedule and budget, Earned Value does not tell you if you are delivering value or not. This is just am additional note.
...
1 reply by Moutaz Tarbin
Sep 17, 2018 4:01 PM
Moutaz Tarbin
...
I didn't mean ignoring EV, but sometimes it is better to focus on 2 variables like in the scattered diagram.
also, you can see that SV-CV=AC-PV
to get to the point please draw S-carve to simulate PV, AC, EV, and variances in both cases, look to the parts that represent CV, SV in both cases analytically and let me know kindly.
Network:95



Sep 15, 2018 3:42 PM
Replying to Moutaz Tarbin
...
I'm sorry my keyboard didn't catch that, I mean:
1. If both ( SV, CV ) Are negative, but SV way less than CV ?
2. If both ( SV, CV ) Are negative but CV way less than SV ?

what is the project performance status for the work that already done in each case?
thank you much Eric
If SV is way less than CV, it simply means that the schedule variance is not as bad as the cost variance.

For example, if SV = - $10,000 and CV = - $100,000 on a $500,000 project, then the project is a bit behind schedule, but way over budget.

Similarly, if SV = - $100,000 and CV = - $10,000, then the project is way behind schedule, but just a bit over budget.
...
1 reply by Moutaz Tarbin
Sep 17, 2018 3:40 PM
Moutaz Tarbin
...
I agree with you this is closest to what I mean, If you draw S-carve to simulate PV, AC, EV, and variances in both cases, you can 100% get my point, which is considered yours too, I can't include that in my reply or attach a picture illustrating that.
Network:95



Sep 15, 2018 6:18 PM
Replying to Moutaz Tarbin
...
regardless of EV value, we can say:
1.means that today we've paid more than what we plan so AC exceeded the planned value(Pv), so SPI greater than CPI, as well as both, are bad.
2.means that at the moment we've been paid less than what we plan to pay, so AC is less than PV, and we've control on the cost more than our control on schedule CPI is greater than SPI(although both is bad because they're less than 1)
Am I right?
CV = EV - AC
SV = EV - PV

CV and SV do not compare AC to PV, so with CV 0 and SV 0, AC could be less than PV, or it could be more than PV. The key to Earned Value Analysis is that it separates the cost and schedule variances. If you try to compare AC to PV, then you can be misled into thinking that all is well when it is not, or that the project is in trouble when it is not. For example, if your project is ahead of schedule, your costs might be more than you had planned at that moment, but less than you had planned for the amount of work done. So, you need to look at CV and SV separately to understand what is going on, whether you need to intervene, and where.

For a thorough explanation of Earned Value, including 100 sample questions, you can get my book on Amazon at http://a.co/d/77BGlYD
Network:28



Sep 17, 2018 3:47 AM
Replying to Eric Isom
...
If SV is way less than CV, it simply means that the schedule variance is not as bad as the cost variance.

For example, if SV = - $10,000 and CV = - $100,000 on a $500,000 project, then the project is a bit behind schedule, but way over budget.

Similarly, if SV = - $100,000 and CV = - $10,000, then the project is way behind schedule, but just a bit over budget.
I agree with you this is closest to what I mean, If you draw S-carve to simulate PV, AC, EV, and variances in both cases, you can 100% get my point, which is considered yours too, I can't include that in my reply or attach a picture illustrating that.
Network:28



Sep 17, 2018 1:19 AM
Replying to Rami Kaibni
...
That is not exactly right, if one is more less than the other or greater, that doesn’t mean a lot as you need other indicators to draw conclusions, EV is not enough.

1- You can’t ignore EV
2- The variances are not measured on daily basis unless you are working on a very small project.

PV = BCWS = Budgeted Cost of Work Scheduled.
EV = BCWP = Budgeted Cost of Work Planned.
AC = ACWP = Actual Cost of Work Performed.

When EV = AC = Project at Budget (AC EV = Project Above Budget)
When EV = PV = Project at Schedule (PV EV = Project Behind Schedule)

If project is way below or way above budget and/or schedule then there is something off with the estimates.

On a side note, if you are within schedule and budget, Earned Value does not tell you if you are delivering value or not. This is just am additional note.
I didn't mean ignoring EV, but sometimes it is better to focus on 2 variables like in the scattered diagram.
also, you can see that SV-CV=AC-PV
to get to the point please draw S-carve to simulate PV, AC, EV, and variances in both cases, look to the parts that represent CV, SV in both cases analytically and let me know kindly.
...
1 reply by Rami Kaibni
Sep 17, 2018 5:39 PM
Rami Kaibni
...
I understand how an S-Curve works but I probably am not understanding what exactly you are looking for. When it comes to progress and performance parameters, I do not think it is better to concentrate on two variables. The scatter diagram is a totally different world, somehow. Yes it can show you the correlation between variables but would this help a lot in the EV performance monitoring ... Not Sure !
Network:103306



Sep 17, 2018 4:01 PM
Replying to Moutaz Tarbin
...
I didn't mean ignoring EV, but sometimes it is better to focus on 2 variables like in the scattered diagram.
also, you can see that SV-CV=AC-PV
to get to the point please draw S-carve to simulate PV, AC, EV, and variances in both cases, look to the parts that represent CV, SV in both cases analytically and let me know kindly.
I understand how an S-Curve works but I probably am not understanding what exactly you are looking for. When it comes to progress and performance parameters, I do not think it is better to concentrate on two variables. The scatter diagram is a totally different world, somehow. Yes it can show you the correlation between variables but would this help a lot in the EV performance monitoring ... Not Sure !
...
1 reply by Moutaz Tarbin
Sep 19, 2018 9:42 AM
Moutaz Tarbin
...
Yes, Rami
I can explain to you my viewpoint by email with which I can attach the diagram.
Page: 1 2 next>  

Please login or join to reply

Content ID:
ADVERTISEMENTS

If a woman has to choose between catching a fly ball and saving an infant's life, she will choose to save the infant's life without even considering if there is a man on base.

- Dave Barry

ADVERTISEMENT

Sponsors

Vendor Events

See all Vendor Events