Earned Value Management Tool

Posted by Kevin Brady on Fri 6th February 2009 at 08:53 PM, Filed in Document Templates & ToolsProgramme ManagementProject ManagementEarned Value

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What is this?

This is a tool enable you to track historical earned value statistics and is used to forecast future project performance. This tool takes the heat out of preparing EVA statistics within MSProject.

Really simple to use !

Why it’s useful?

The general idea behind earned value is to compare where you actually are against where you planned to be when you started the project. Let’s look at this concept a little deeper. Let’s say you’re currently working on activities 59, 85, 89, 103, and 110 in your project plan, and that all of the dependent activities ahead of them have been completed. Earned value allows you to quantify all of the work that you’ve accomplished on the project, as well as all of the work that should have been done on the project so far. Then, you can compare the work that has been done against the work that should have been done to determine if you’re on schedule, ahead of schedule, or behind schedule.

Likewise, given where you are today, earned value calculations allow you to determine the total cost of the work done so far, as well as the total cost of all the work you expected to have completed by now. Comparing these two numbers gives you a sense for whether you’re trending over budget, under budget, or on budget.

Utilizing both the schedule and cost metrics gives you more information as well. You may well be spending your budget faster than you anticipated, but what if you’re ahead of schedule as well? You may be spending more than you expected because your team is getting more work done than planned. Great!!

Similarly, if your project is behind schedule, but you’re also behind in your spending, that may be fine as well. Perhaps factors beyond your control affected your progress; for example, if you weren’t able to get team members allocated as fast as you’d planned. So your project is behind schedule, as is your spending rate. If you have a critical end date, this may be a problem. No so Good!!

How to use it?

Set-up

• Fill in Project Information section
• Adjust Date column to match your project’s reporting period
• Adjust Date column to match your project’s reporting period

Regular EVA Tasks

• Determine Planned Value (PV), Earned Value (EV) and Actual Costs (AC) metrics from project plan
• Enter PV,EV and AC into the sheet on a weekly basis
• Review estimation and forecast metrics for Red or Yellow status
• Review EVA Chart
• Assess project plan and determine corrective action if necessary
• Include EVA metrics and EVA Chart with the project status report

Good luck with this template. I hope it makes a difference to the success of your project wink

Please send me any updates to this template if you have improved it in anyway so I can share it with my readership.

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