EPM Central Project Server Tutorials
Home Deployment    MS Project PWA SharePoint Articles Administrators FAQs Consulting Guest Book Search Site Map
     MS Project

Manage Project

Project Server Account

New Project

Preferred Options

  Resources
Resource Types
Enterprise Resources
Copy Assignments

     Tasks
Enter Tasks
Recurring Tasks
Key Tasks
Assignments
Task Dependency
Docs and URLs
Critical Path
Format Views

     Task Types
Overview
Fixed Units
Fixed Duration
Fixed Work

Effort Driven
Non Effort Driven

 Network Diagram

     Baseline
Overview
Save Baseline
View Baseline

 Collaboration

    Update Project
Overview
Enter Actuals
PWA Updates
Actual Work Protected

     Earned Value
Overview
Prerequisites
EV Terminology
Example

    Master Project
Overview
Create Master
Manage Links
Critical Path

   Export Gantt

  Help from Microsoft
Project 2003
Project 2007

     2007 Features

Local Cache

Open Project

Publish Project

Work Offline

Share Project

Program Plan

 
 
 
MS Project -> Earned Value -> Example
   Earned Value Example :

Let’s say, I have a project plan called “EV.MPP”. This project contains just one task called “Installation and Configuration of the server”. Sam is the resource working on this project. Sam’s hourly rate is $10 per hour.

Scenario:
  • Project/Task Start: 7/16/2007
  • Project/Task Finish: 7/27/2007
  • Estimated total duration to complete project: 10 days
  • Estimated work: 80 hours
  • Resource hourly rate: $10
  • Budget cost at completion (BAC) = 80 * $10 = $800
Let’s assume these estimates, I saved as baseline.

Once I saved the baseline, project has been started and entered into execution phase. Sam started working on his task and worked for 5 days and he submitted the actual work as follows:

Actual work done by Sam:
  • 7/16/2007 (Monday): 8 hours
  • 7/17/2007 (Tuesday): 8 hours
  • 7/18/2007 (Wednesday): 2 hours
  • 7/19/2007 (Thursday): 6 hours
  • 7/20/2007 (Friday): 8 hours
Total Actual Work : 32 hours

I updated the project plan with actual work from 7/16 to 7/20. After update, Gantt chart looks as below:





To view Earned value, we have to apply the Earned value table to tracking gantt.

Steps
  • On View menu -> Choose Tracking Gantt
  • View -> Tables -> More Tables -> Earned Value -> Apply

Gantt Chart will looks like below:


Please see below for explanation of EV values obtained from example:




% Work Completed:

Originally estimated work for entire project: 80 hours

Actual work done till status date: 32 hours

Percentage of work completed with respect to original estimation: 32 hours out of 80 hours

(32 * 100)/80 = 40 %



% Completed:

Originally estimated duration of entire project: 10 days

On status date, estimated duration has been calculated: 11 days

(We had less actual work comparatively with original estimation, to complete the entire work, now required 11 days)

Out of 11 days of the work, we completed 5 days of actual work as of Status Date.

(5 * 100)/11 = 45.4545 %

Please note due to rounding, Gantt char is showing as 45 % completed


BAC:

Estimated total duration to complete project: 10 days;

Estimated work: 80 hours;

Resource hourly rate: $10

Budget cost at completion (BAC) = 80 * $10
                                                           = $800


BCWS: BCWS value is original estimated of budgeted cost till Status Date.

Originally estimated work till status date: 40 hours

Resource rate per hours: $10

Originally planned budgeted cost till status date: 40 * $10 =$400


BCWP: BCWP value is based on % completed, so the calculation of BCWP as follows:

Original planned budget for entire project: $800

Percentage of work performed till Status Date (% Completed): 45.4545 %

(45.4545 * 800) / 100 = $363.63



ACWP: ACWP values actual cost incurred till status date.

Actual work performed till status date: 32 hours

Resource rate per hours: $10

Actual cost till status date: 32 * $10 = $320


Cost Variance (CV):  The difference between BCWP and ACWP

CV = $363.63 - $320
      = $43.63

A positive cost variance indicates that the project is on budget

A negative cost variance indicates that the project is under budget, it means more funds need to complete the project.


Schedule Variance (SV): The difference between BCWP and BCWS

CV = $363.63 - $400
      = - $36.37

A positive schedule variance indicates that the project is on time and keeping the estimated schedules

A negative schedule variance indicates that the project is behind the schedules.


Cost per Index (CPI):

CPI = Earned Value / Actual Costs

CPI = BCWP/ACWP
       = $363.63/$320.00
      = 1.1363
      = 1.14


Schedule per Index (SPI):

SPI = Earned Value / Planned Value

CPI = BCWP/BCWS
      = $363.63/$400.00
      = 0.91


Estimated at Completion (EAC): Expected total cost of project based on performance as of status date.

EAC = ACWP + (BAC – BCWP) / CPI
             = $320 + ($800 - $363.63 ) /1.1363
             = $320 + $436.37/1.1363
            = $320 + $ 384.0271
            = $704.02


The complete performance index (TCPI):

TCPI = (BAC-BCWP)/(BAC-ACWP)
             TCPI = ($800 - $363.63)/ ($800 - $320)
             TCPI = 436.37/480
             TCPI = 0.91

A TCPI value is greater than 1, implies good performance of the project

A TCPI value is less than 1, implies poor performance of the project





Copyright © 2013. EPM Central. All rights reserved.