When I give examples for my students about EVM, they ask me how to calculate this, What I use ( I am in photovoltaic power industry:
example of string of photovltaic panels (A string is a grouping of modules wired in series on same table); so
if we planned to the moment to install 100 string with planned cost : 100 000 $
And we performed 200, the earned value is EV= (100 000/100 )*200 = 200 000 $
is this right?
And as you probably noticed by now my English is bad so I hope that I expose is clear.
many thanks Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Rachid,
I do not believe this is 100% correct- Unless I did not understand correctly. You are saying that the Planned Value (PV) = $100,000 which I assume is not the overall project budget because you did more than a 100.
To calculate the earned value, you need:
1- The overall project budget ?
2- What was the actual cost after finishing the 200 ?
3- What was the planned value for doing 200 ?
If the overall project was only 200 Strings and the Planned Value for those was $200,000 then your EV will be $200,000 but this wasn't mentioned at all.
For other references and examples, you can refer to the below link:
Rami thanks,
In real word never use it, we monitor project by driven balance sheet and income statement.
However when teaching PMI PMBOK I am faced to such situation.
the planned value is 100
the overall budget is 500
actual cost is 150
thanks for help
I do not believe this is 100% correct- Unless I did not understand correctly. You are saying that the Planned Value (PV) = $100,000 which I assume is not the overall project budget because you did more than a 100.
To calculate the earned value, you need:
1- The overall project budget ?
2- What was the actual cost after finishing the 200 ?
3- What was the planned value for doing 200 ?
If the overall project was only 200 Strings and the Planned Value for those was $200,000 then your EV will be $200,000 but this wasn't mentioned at all.
For other references and examples, you can refer to the below link:
Rami thanks,
In real word never use it, we monitor project by driven balance sheet and income statement.
However when teaching PMI PMBOK I am faced to such situation.
the planned value is 100
the overall budget is 500
actual cost is 150
thanks for help
...
1 reply by Sungjoon Park
Nov 13, 2016 4:03 AM
Sungjoon Park
...
Dear Rachid,
As per the given information, the activity ,"Installing Strings"or work package "Strings", my understanding is below:
BAC for this activity : 500,000 ( if this is overall budget for 500 strings and this is not including management reserve)
PV for this activity : 100,000
AC for this activity : 150,000
EV for this activity : 200,000
If overall budget is not for 500 strings, as Rami commented, you need to know what the plan vale for 200 strings is?
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
You're Welcome Rachid.
You also need the planned value for the 200 Strings. With all this information in hand, if you follow the example in the link I gave you, you will be able to calculate all EVM Parameters.
Rami thanks,
In real word never use it, we monitor project by driven balance sheet and income statement.
However when teaching PMI PMBOK I am faced to such situation.
the planned value is 100
the overall budget is 500
actual cost is 150
thanks for help
Dear Rachid,
As per the given information, the activity ,"Installing Strings"or work package "Strings", my understanding is below:
BAC for this activity : 500,000 ( if this is overall budget for 500 strings and this is not including management reserve)
PV for this activity : 100,000
AC for this activity : 150,000
EV for this activity : 200,000
If overall budget is not for 500 strings, as Rami commented, you need to know what the plan vale for 200 strings is?
As per the given information, the activity ,"Installing Strings"or work package "Strings", my understanding is below:
BAC for this activity : 500,000 ( if this is overall budget for 500 strings and this is not including management reserve)
PV for this activity : 100,000
AC for this activity : 150,000
EV for this activity : 200,000
If overall budget is not for 500 strings, as Rami commented, you need to know what the plan vale for 200 strings is?
Thanks Sungjoon the planed for 200 is 200 I understand but is not very usufull for real project any way with link you provided is help me Saving Changes...
Product Operations Program ManagerBarcelona, Cataluña, Spain
Just my 2 cents and an alternative view to Rami's:
if the project goal is to make 100 Strings, then making 200 could be considered a change of scope. If this is the case, then rebaselining should be done prior to EVM calculations
...
1 reply by Rami Kaibni
Nov 14, 2016 11:00 AM
Rami Kaibni
...
Eduard, I believe the overall scope was more than 200 but for that period of time the target or milestone was 100. Instead they achieved 200 so they are ahead of schedule, I do not believe this is a chance in scope but if it is, then I agree with what you've mentioned.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Nov 14, 2016 8:43 AM
Replying to Eduard Hernandez
...
Just my 2 cents and an alternative view to Rami's:
if the project goal is to make 100 Strings, then making 200 could be considered a change of scope. If this is the case, then rebaselining should be done prior to EVM calculations
Eduard, I believe the overall scope was more than 200 but for that period of time the target or milestone was 100. Instead they achieved 200 so they are ahead of schedule, I do not believe this is a chance in scope but if it is, then I agree with what you've mentioned.
Eduard, I believe the overall scope was more than 200 but for that period of time the target or milestone was 100. Instead they achieved 200 so they are ahead of schedule, I do not believe this is a chance in scope but if it is, then I agree with what you've mentioned.
Community Champion
