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Topics: Cost Management, Scheduling
Applying practically EVM to your project
I am looking to find out how we can practically apply EVM to a project?
Is it applied/ calculated for every task carried out? For example, in construction, we have works related to

1. Civil - New building construction, drainage system, trenching etc..
2. Electrical - Trunking, cable laying etc..
3. Equipment - Moving eqpt to exact location/ rooms, installation and commissioning

It would be great if someone explains this with an example.

Muthu
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Yes, I am applying and reporting to my client on my weekly and monthly progress reports, as below (Example):

Schedule Status:
a) % Baseline #1 Planned = 100.00%
b) % Earned = 38.37%
c) % Variance = - 61.63%
d) Schedule Performance Index (SPI) = 0.38
e) S-Curve – Refer to Appendix G
f) SPI Chart – Refer to Appendix H

above is the status of the overall project schedule, which include civil, electrical, resources, and etc, even you can calculate each of them separately.
...
1 reply by Muthukrishnan Ramakrishnan
Feb 10, 2021 6:57 AM
Muthukrishnan Ramakrishnan
...
Alright. Is there a template that can be shared? I don't mean the EVM template, but the template that is used to prepare a real-time schedule and cost. Because I want to apply practically and I don't can't find enough resources.
Feb 10, 2021 1:48 AM
Replying to Ahmad Mushtaq Abdurahimzai
...
Yes, I am applying and reporting to my client on my weekly and monthly progress reports, as below (Example):

Schedule Status:
a) % Baseline #1 Planned = 100.00%
b) % Earned = 38.37%
c) % Variance = - 61.63%
d) Schedule Performance Index (SPI) = 0.38
e) S-Curve – Refer to Appendix G
f) SPI Chart – Refer to Appendix H

above is the status of the overall project schedule, which include civil, electrical, resources, and etc, even you can calculate each of them separately.
Alright. Is there a template that can be shared? I don't mean the EVM template, but the template that is used to prepare a real-time schedule and cost. Because I want to apply practically and I don't can't find enough resources.
Muthukrishnan -

Before looking for a template, you first need a good decomposition of the project's scope using a WBS or similar tool. That is the first prerequisite for EVM - having work packages at a manageable level of detail to support accurate planning and tracking. You'll also want to ensure that your financial systems can provide reports which enable you to compare "apples to apples" when determining EV and AC...

Kiron
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1 reply by Muthukrishnan Ramakrishnan
Feb 10, 2021 5:10 PM
Muthukrishnan Ramakrishnan
...
Could you be more elaborate on what you mean by work packages with a manageable level of detail? As far as I know, it means the exhaustive list of works to be carried out.

I do get the other part.
I totally agree with Kiron,
EVM is merely an extension of tracking tasks to determine if they are completed when expected and cost what was expected. The difference with EVM is that data is combined to provide a project level view.

Consider an earth moving project where a site is divided into 10 equal sections, each with one equipment operator working 8 hours a day for one month. At the end of each day, you may assess whether each operator moved the planned amount of dirt. That is your basis for CPI and SPI.

If an operator is unable to move the estimated amount in 8 hours and goes home, then the cost is on plan, but the schedule performance is behind. If the operator works past 8 hours to complete the day's work, then the cost goes up and the schedule is on plan. If the operator has a day off, then the cost goes down and the schedule performance goes down. If a machine breaks and must be repaired, the cost goes up due to unplanned work, and the schedule is behind because the planned work wasn't getting done.

In projects with multiple tasks occurring simultaneously, you can add the cost and schedule performance of all the operators together to get a single CPI and SPI. If you have construction going on also, you can combine the earth moving and construction together, or look at them separately. That work all comes out of the WBS.

Some jobs may be behind and others ahead which at the project level may balance each other out. It may be possible to move resources from one job that is ahead to another that is behind, to improve the overall performance. If the earth moving is behind but the electrical installation is ahead, you probably can't move resources because of the skill difference. For that reason you often have to look at more detail than just the CPI and SPI at the project level to know if and how you may recover your performance metrics.
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1 reply by Muthukrishnan Ramakrishnan
Feb 10, 2021 5:20 PM
Muthukrishnan Ramakrishnan
...
That explains all. Maybe I will convert this in terms of EVM to have a better understanding.

Whether this EVM applied based on the complexity of projects. Because when a PM can foresee/ forecast criticality even without these, then is it really necessary to build up one?
A practical implementation of EVM can be made using Project Software, creating a Detailed Schedule, assigning specific resources to each task, and determining the cost through prorated calculation, or fixed cost. Microsoft Project provides a Cost Table, that you can personalize showing BCWP, BCWS, AC, SPI, CPI, CSI, SV, CV, as principal data of Earned Value Method. Also, you can manage the Physical % Complete y % Complete Values of each task, to influence changes in EV and PV respectively.
In addition, an installation of an S-Curve Add-in will allow you to convert this data into S-Curve Diagram.
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1 reply by Muthukrishnan Ramakrishnan
Feb 10, 2021 5:21 PM
Muthukrishnan Ramakrishnan
...
Thanks. Can you name some of the software used in the industry?
Feb 10, 2021 8:35 AM
Replying to Kiron Bondale
...
Muthukrishnan -

Before looking for a template, you first need a good decomposition of the project's scope using a WBS or similar tool. That is the first prerequisite for EVM - having work packages at a manageable level of detail to support accurate planning and tracking. You'll also want to ensure that your financial systems can provide reports which enable you to compare "apples to apples" when determining EV and AC...

Kiron
Could you be more elaborate on what you mean by work packages with a manageable level of detail? As far as I know, it means the exhaustive list of works to be carried out.

I do get the other part.
...
1 reply by Kiron Bondale
Feb 10, 2021 6:17 PM
Kiron Bondale
...
The scope of your project needs to be decomposed to a level which provides you with the ability to appropriately manage the work being done and which helps stakeholders understand how the project is doing.
Feb 10, 2021 1:48 PM
Replying to Keith Novak
...
EVM is merely an extension of tracking tasks to determine if they are completed when expected and cost what was expected. The difference with EVM is that data is combined to provide a project level view.

Consider an earth moving project where a site is divided into 10 equal sections, each with one equipment operator working 8 hours a day for one month. At the end of each day, you may assess whether each operator moved the planned amount of dirt. That is your basis for CPI and SPI.

If an operator is unable to move the estimated amount in 8 hours and goes home, then the cost is on plan, but the schedule performance is behind. If the operator works past 8 hours to complete the day's work, then the cost goes up and the schedule is on plan. If the operator has a day off, then the cost goes down and the schedule performance goes down. If a machine breaks and must be repaired, the cost goes up due to unplanned work, and the schedule is behind because the planned work wasn't getting done.

In projects with multiple tasks occurring simultaneously, you can add the cost and schedule performance of all the operators together to get a single CPI and SPI. If you have construction going on also, you can combine the earth moving and construction together, or look at them separately. That work all comes out of the WBS.

Some jobs may be behind and others ahead which at the project level may balance each other out. It may be possible to move resources from one job that is ahead to another that is behind, to improve the overall performance. If the earth moving is behind but the electrical installation is ahead, you probably can't move resources because of the skill difference. For that reason you often have to look at more detail than just the CPI and SPI at the project level to know if and how you may recover your performance metrics.
That explains all. Maybe I will convert this in terms of EVM to have a better understanding.

Whether this EVM applied based on the complexity of projects. Because when a PM can foresee/ forecast criticality even without these, then is it really necessary to build up one?
Feb 10, 2021 4:59 PM
Replying to Verónica Elizabeth Pozo Ruiz
...
A practical implementation of EVM can be made using Project Software, creating a Detailed Schedule, assigning specific resources to each task, and determining the cost through prorated calculation, or fixed cost. Microsoft Project provides a Cost Table, that you can personalize showing BCWP, BCWS, AC, SPI, CPI, CSI, SV, CV, as principal data of Earned Value Method. Also, you can manage the Physical % Complete y % Complete Values of each task, to influence changes in EV and PV respectively.
In addition, an installation of an S-Curve Add-in will allow you to convert this data into S-Curve Diagram.
Thanks. Can you name some of the software used in the industry?
Feb 10, 2021 5:10 PM
Replying to Muthukrishnan Ramakrishnan
...
Could you be more elaborate on what you mean by work packages with a manageable level of detail? As far as I know, it means the exhaustive list of works to be carried out.

I do get the other part.
The scope of your project needs to be decomposed to a level which provides you with the ability to appropriately manage the work being done and which helps stakeholders understand how the project is doing.
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