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  • COST Monitoring and Control Earned Value Method

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    vipereyes
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    This document discusses earned value management and how to calculate earned value and estimate costs to complete a project. It introduces earned value, planned value, actual costs, and earned value costs. It explains that earned value combines measurements of scope, original plans, schedules, current plans, budgets, and actual costs. It also defines key variables like planned value, actual value, and earned value. Finally, it demonstrates how to calculate estimates to completion, estimates at completion, and variance at completion using earned value metrics.

    Original Description:

    p6 cost

    Original Title

    Jay-PMP-07-Cost-EVM

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    This document discusses earned value management and how to calculate earned value and estimate costs to complete a project. It introduces earned value, planned value, actual costs, and earned value costs. It explains that earned value combines measurements of scope, original plans, schedules, current plans, budgets, and actual costs. It also defines key variables like planned value, actual value, and earned value. Finally, it demonstrates how to calculate estimates to completion, estimates at completion, and variance at completion using earned value metrics.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    11 views21 pages

    COST Monitoring and Control Earned Value Method

    Uploaded by

    vipereyes
    This document discusses earned value management and how to calculate earned value and estimate costs to complete a project. It introduces earned value, planned value, actual costs, and earned value costs. It explains that earned value combines measurements of scope, original plans, schedules, current plans, budgets, and actual costs. It also defines key variables like planned value, actual value, and earned value. Finally, it demonstrates how to calculate estimates to completion, estimates at completion, and variance at completion using earned value metrics.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 21

    COST Monitoring and Control

    Earned Value Method

    Jay..
    Calculating Earned Value and Estimate to Complete

     Introduction to Earned Value

     Calculate Planned Value Costs

     Calculate Actual Costs

     Calculate Earned Value Costs

     Estimate to Completion (ETC)

     Using CPI/SPI to calculate your ETC

     Questions?

    Jay..
    Jay..
    What is Earned Value?
    Combines Measurements of

     Scope

     Your Original Plan

     Schedule

     Current Plan

     Cost

     Budget vs. Actual

    Jay..
    Primavera Variables
     Planned Value
     is the authorized budget assigned to scheduled work.

     defines the physical work that should have been accomplished.

     Actual Value
     is the realized cost incurred for the work performed on an activity during a specific time
    period.

     Earned Value
     It is the budget associated with the authorized work that has been completed.

     is often used to calculate the percent complete of a project

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    Forecasting
    Estimate At Completion & Estimate To Complete

    BAC = $ 40,000 PV = $ 30,000 AC = $32,000 EV = $ 25,000 CPI = 0.781 SPI = 0.833

    Jay..
    Estimate At Completion

    EAC EAC

    𝑩𝑨𝑪
    AC + (BAC – EV)
    𝑪𝑷𝑰
    CPI is expected to be the same for the remainder of the project Future work will be accomplished at the planned rate

    EAC EAC

    (𝑩𝑨𝑪 −𝑬𝑽)
    AC + AC + Bottom up ETC
    (𝑪𝑷𝑰 𝒙 𝑺𝑷𝑰)

    CPI and SPI influence the remaining work Initial plan is no longer valid

    Jay..
    Estimate To Complete

    ETC ETC

    EAC – AC Re-Estimate
    Assumes work is proceeding on plan. Re-estimate the remaining work from the bottom up.

    Jay..
    Variance At Completion
    VAC

    BAC – EAC
    The estimated difference in cost at the completion of the project.

    Jay..
    BAC AC EV EAC ETC Variance

    40000 32000 25000 47000 15000 -7000

    Jay..
    Performance measurement data element

    Jay..

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