Earned performance Index project Management
Variance Calculations:
- Schedule Variance (SV) = Earned Value – Planned Value. The difference between what was planned to be completed and what has actually been completed as of the current date.
- Cost Variance (CV) = Earned Value – Actual Costs. The difference between the work that has been accomplished (in dollars) and how much was spent to accomplish it.
In the graph below, the project shown has a negative Schedule Variance, because it has “earned” less value than was planned, as of the current date. However, it has a positive Cost Variance, because the Earned Value is greater than the Actual Costs accrued:
Performance Indices:
- Schedule Performance Index (SPI) = Earned Value / Planned Value. Schedule variance related as a ratio instead of a dollar amount. A ratio less than 1.0 indicates that work is being completed slower than planned.
- Cost Performance Index (CPI) = Earned Value / Actual Costs. Cost variance related as a ratio instead of a dollar amount. A ratio less than 1.0 indicates that the value of the work that has been accomplished is less than the amount of money spent.
In the schedule below, Project A has a CPI greater than 1.00. This shows us that the project has been earning value faster than it has been accruing costs:
However, Project A also has a SPI value that is less than 1.00. Although Actual Costs are low, Task 1 is behind schedule, so the project has not earned as much value as was planned.
Successfully Presenting Earned Value is a free e-book which will help you learn to implement and present Earned Value schedules. It offers both an explanation of Earned Value Management principles, and step-by-step instructions. This e-book is offered at no charge. After reviewing it, you may be interested in downloading our Milestones Professional software. Milestones Professional was used to produce the presentation-ready Earned Value reports shown in the e-book and can be used to make schedules in many formats, including Gantt charts, Milestone charts, Summary charts, Resource Charts and more.
You might also like
Job seeker uses billboard across from Kitchener's Google office to stand out .. — MetroNews Canada
Brumwell-worked in the information technology and project management fields in recent years for companies including Enbridge. Much of his work in the past five years has been on contract, leading him to want to seek out something more permanent.
Low-tech billboard gets high-tech attention — OurWindsor.ca
Brumwell worked in the information technology and project management fields in recent years for companies including Enbridge. Much of his work in the past five years has been on contract, leading him to want to seek out something more permanent.
A privilege to sharing the joy of music — BDlive
Now he teaches the same instrument as part of his work with Buskaid, although he dreams of starting his own project management business "with a few friends", information technology and project management being what he studied after finishing school.
|
Earned Value Mobile Application (Business Compass LLC)
|
