pmStudent

…dogs and cats living together… MASS HYSTERIA! - Dr. Peter Venkman

No, it’s true! Earned Value Management techniques can work with non-traditional project management methodologies, including Agile, Critical Chain, and Lean PM. Read more »

Monitoring and Controls on a project is valuable and worth the experience. Measuring how a project is doing helps stakeholders to understand the future health of a project. Read on for a little insight into how it’s done. Read more »

Now, let’s find the ETC and EAC.
From part 1:
PV = $450,000 USD
EV = $420,000 USD
AC = $415,000 USD
BAC = $2,000,000 USD
From part 2:
CV = $5,000 USD
CPI = 1.01
SV = -$30,000 USD
SPI = 0.93

We’ll use the formula for ETC for typical variance, meaning that we expect progress to continue the way it has in the past.
ETC [...] Read more »

Next, you need to find your CV, SV, CPI, and SPI.
From part 1:
PV = $450,000 USD
EV = $420,000 USD
AC = $415,000 USD

Just plug in the numbers
CV = EV - AC
CV = $420,000 USD - $415,000 USD = $5,000 USD
CPI = EV / AC
CPI = $420,000 USD / $415,000 USD = 1.01
SV = EV - PV
CV [...] Read more »

You are the project manager working on building the first prototype of a new whiz-bang gadget. You are about 2 months into the project, which was projected to be 10 months long in the beginning, with a budget of $2,000,000 USD.
Let’s take a look at your project with EVM with the goal of making [...] Read more »

EVM is meant to be used during project execution to monitor progress and hopefully find problems early so that adjustments can be made. Forecasting is an important part of finding out how big of a deal your CPI or SPI is at this point in the project.
We’ll use the same numbers from the last [...] Read more »

I’d like to first discuss calculating variances and indexes from those fundamental EVM numbers I discussed in my last post.

Variances
Variances are always expressed in currency. They are just what they sound like, the difference between where you are at and where you had planned to be.
CV - Cost Variance

CV = EV - AC [...] Read more »

I would like to start my foray into EVM by doing some definitions and basic formulas. I’ll give my paraphrased descriptions as to what’s what and why.
No formulas today, just the 3 core inputs necessary to do all the EVM calculations we’ll get to later.
PV - Planned Value AKA BCWS - Budgeted Cost of [...] Read more »

When I originally started this blog, it was because I wanted to explore ways of making Earned Value Management (EVM) work with Critical Chain project management. I still believe that is a worthwhile goal. I have been doing a lot of brushing up on EVM lately, and am ready to dig in again. [...] Read more »