I am familiar with the EVM methodology from a theoretical point of view, but would like to hear your inputs on the following example.
A specific project that stretches across 5 weeks. Resource hourly cost is 100 €, not subjected to change throughout the project. The PM plans with the project team the resource needs (at week 0) and receives an update every week on how many actual hours have been spent on the project
With ONLY this information, is it possible to know the EV for each week? Or on the contrary, more detail needs to be given in order to know the value of the tasks performed each week?
All your inputs are welcome! Thanks in advance. Saving Changes...
Based on your question you have all information to calculate. You plan certain hours and know how many hours spent. This gives you all metrics. Saving Changes...
Anonymous
Agree with Sergio - there is no difference here since the theory include formulas so apply the formulas.
But to humor you
Based on the info provided you can determine AC not EV. EV needs accomplishment and your question does not mention any progress or work accomplishment. Saving Changes...
Adilson PizeCEO and Consultant| Excellence ConsultantsCaxias Do Sul, Rs, Brazil
The earned value is calculated for each task/work package through of the % completed applyed over its budget value. So, you need receive the information on % completed of the project tasks/work package. The number of hours worked by the team members in each task will impact in the actual cost, not in the earned value.
A simple example for one work package:
Duration: 5 weeks
BAC (Budget at Completion): $ 500,000.00
Thanks Adilson Pize, for the practical approach in your response to the raised question.
Referring to the case that we have , what will be the real meaning of EV analysis if we consider the extended period of project delay as a separate period of time to execute the remaining work with the scheduled cost rate of the project plan.
Always the tendency is to have a delay effect in your project so we can deduce that:
Planned Value (PV) is more than actual cost (AC) which in turn is more than earned value (EV).When projects delay lead to a catastrophic impact @ the project execution stage then we will have (AC) is much more than (PV); (EV) is less than (AC) ….. CPI fraction will get small and smaller less than unity as an indication of unhealthy performance. Saving Changes...
Anonymous
Ahmd - I do not have a clue on what you are talking about
Further PV and AC has nothing to do with each other so it does not matter which is higher.
I think most people do not understand the following:
1. EVM is only a indicator TODAY. It is like a thermometer - it can tell you NOW if you have a fever or not. It does not tell you how you will feel tomorrow nor what caused the fever.
2. Many make the mistake of looking at Cumulative CPI and SPI - this is bad because on average you could be looking good but in reality you are not. EVM has to be done at the work package level.
3. EVM by itself is not enough - it is ONE of the techniques we use.
4. The purpose of EVM is to help us develop TIMELY and ACCURATE forecast - so we can take immediate actions in case of deviations - reporting on CPI and SPI at the time of the monthly report or not getting into the detail - is - well to say it bluntly = incompetence. Saving Changes...
Schedule Performance Index (SPI), Cost Performance Index (CPI), Cost Variance (CV) and Schedule Variance (SV) are interrelated measuring tools to report about the project performance in my understanding ; so it will be a helpful if you could elaborate more on how the (EVM) analysis will be carried out in the absence of Planned Value (PV) and the Actual Value (AC).
By the way the comparison that I spoke about earlier are related to the execution span of timing for any project from its early stage at the startup weeks up to the closure time where we anticipate to end with some delays more likely. Saving Changes...
Anonymous
Dear Sir
I never said you do not use PV and AC - they are a must for full EVM analysis. My comment was in response to your post where you stated:
"Planned Value (PV) is more than actual cost (AC) ... ... then we will have (AC) is much more than (PV)" --- you are comparing PV with AC which give you nothing. It does not matter which is higher PV or AC - it does not give you any indicator. All of the variables you mentioned compare PV with EV (only) and EV with AC (only). There is no formula that compare PV with AC. Saving Changes...
If your first comment is related to the clarifications that u made in the second one , I do not think it deserving to describe someone as having the clue on the matter or not.
For the comparison that been laid between PV & AC if u return literally to what I said u will discover that:
PV> EV>AC @ the initial stage of project - ( may be due to the beginning slackness of not full mobilized resources, team set up considerations,...etc).While @ the project closure time AC > PV>> EV - (as a result of schedule crushing, fast tracking effects in addition to further delay overrun cost implications). Saving Changes...
Anonymous
Dear Mr Ahmd
What I said is this "Ahmd - do not have a clue on what you are talking about"; meaning I (Mounir) do not have a clue = did not understand your message. This was not a judgment on you; it is simple ME (Mounir) not understanding your message - which could be my fault or yours.
It is not my place to pass judgment or you or anyone else. Saving Changes...
