Tom GauseSenior Manager, Project Program Management| AetnaGreenville, Sc, United States
Is there a way to calculate earned value without budget/cost data? In my company, we don’t have budgets for our projects. I doubt there is, but I thought I would ask in case someone has a way to do it without costs in the calculations. Thanks! Saving Changes...
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Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
If you take a look to PMI´s EVM standard you will see ESM method inside it. It does mean Earned Schedule Management which is the alternative you are looking for. I use it. Saving Changes...
You can use EVM using other measures including hours and storypoints.
In fact, if you look at the typical method of forecasting schedule completion on projects where storypoints, velocity and sprints are used, it is using EVM concepts.
EVM treats cost as how much actual consumeable resources are used over allotted times to meet objectives, compared to the planned useage. Labor hours and equipment useage both cost money over time, even if you don't know what they are. They help you to understand whether you are meeting your goals within the projected effort required.
Large capital expenses by contrast are not considered consumables. If you included a $1M piece of hardware for example, it could hide your actual progress because variances in your planned effort might be very small compared to the total cost.
Combining different types of proxy measurements may be difficult if you don't know their relative cost. You have to look at the individual variances by source, unless you have some ratio of labor hours cost to yards of gravel for example. Saving Changes...
