EVM (Earned Value Management) Samples

Problem 0:

·         Project is to install 200 windows.

·         Each week of the project cost is same.

·         Team is paid $4000 every week plus $1000 worth of parts.

·         Project is scheduled for 16 weeks.

·         Calculate – BAC (Project budget)?

·         After four weeks installed windows are 40. Ideally it should be 50 windows.

·         Calculate PV & EV?

 

Answer 0:

 

Problem 0:
Project Duration (wks)	16.00
Each Week Cost	5000.00
BAC($)	80000.00
After 04 Weeks:
Planned % Complete - (50/200)	25.00%
Actual % Complete - (40/200)	20.00%
Planned Value (PV)($)	20000
Earned Value (EV)($)	16000

 

Since the earned value after four weeks is less than planned value,

That means customer is running in loss.

 

 

Problem 1:

·         Project has a total budget of $3,00,000.

·         So far spent $1,75,000.

·         Team has completed 40% of the project work.

·         However team should have completed 50% of the work.

·         Calculate – EV, SV, CV, SPI, CPI ?

 

Answer 1:

 

Problem 1:
BAC	300000.00
Actual Cost	175000.00
Planned % Complete	50.00%
Actual % Complete	40.00%
Planned Value (PV)	150000
Earned Value (EV)	120000
SV (EV-PV)	-30000
CV (EV-AC)	-55000.00
SPI (EV/PV)	0.8
CPI (EV/AC)	0.69

 

Project is behind schedule and over budget.

 

Problem 2:

·         Project has a total budget of $6,50,000.

·         Total hours of project work 7500

·         So far spent $4,00,000.

·         Team has completed 5100 hrs of the total project work.

·         However team should have completed 4500 hrs of the total project work.

·         Calculate – EV, SV, CV, SPI, CPI ?

 

 

Problem 2:
BAC ($)	650000.00
Actual Cost	400000.00
Total Work	7500.00
Planned Work (Hrs)	4500.00
Planned % Complete	60.00%
Actual Work (Hrs)	5100.00
Actual % Complete	68.00%
Planned Value (PV)($)	390000.00
Earned Value (EV)($)	442000.00
SV (EV-PV) ($)	52000
CV (EV-AC) ($)	434500.00
SPI (EV/PV)	1.13
CPI (EV/AC)	1.11

 

Project is early and under budget.

 

 

Problem 3:

·         Project has a total budget of $55,000.

·         So far spent $25,000

·         Planned project duration – 4 weeks.

·         At present project has finished third week and team has completed 50% of the work.

·         Calculate – EV, SV, CV, SPI, CPI ?

 

Note: As project has finished third week of a four week project, so planned % complete is 75%.

 

Problem 3:
BAC ($)	55000.00
Actual Cost	25000.00
Total Duration (Wks)	4.00
Planned % Complete	75.00%
Actual % Complete	50.00%
Planned Value (PV)($)	41250.00
Earned Value (EV)($)	27500.00
SV (EV-PV) ($)	-13750
CV (EV-AC) ($)	2500.00
SPI (EV/PV)	0.67
CPI (EV/AC)	1.10

 

Project is behind schedule but under budget.

 

Problem 4: Part 1

·         Project is scheduled for two years.

·         You have got six different teams working on five major fucntional areas. Some teams are ahead of schedule and other are failing behind schedule.

·         I.e. Some areas are running under cost and some are over cost and that's making very hard to grasp whether the project is under or over budget.

·         It is nine months into the project.

 

·         Project has a total budget of $42,00000.

·         So far spent $16, 50000

·         CPI is 0.875

·         Calculate – EAC, EV, SV, CV, SPI, and CPI?

 

 

Problem 4:
BAC ($)	4200000.00
Actual Cost	1650000.00
CPI (EV/AC)	0.875
EAC (BAC/CPI)($)	4800000.00
ETC (EAC-AC)($)	3150000.00
VAC($) (BAC-EAC)	-600000.00

 

Since the VAC is negative, it means that project is over budget by 60k at completion.

 

Problem 4: Part 2

 

·         Now six months later

·         Cost spent – 2625000

·         Work complete – 70%

·         Calculate – New Forecase values?

 

Problem 4: Part 2
BAC ($)	4200000.00
Actual Cost	2625000.00
Actual % Complete	70.00%
Earned Value (EV)($)	2940000.00
CPI (EV/AC)	1.120
EAC (BAC/CPI)($)	3750000.00
ETC (EAC-AC)($)	1125000.00
VAC($) (BAC-EAC)	450000.00

 

Since the VAC is positive, it means that project is under budget by 45k at completion.

 

Problem 5:

 

·         Project is about laying fibre optic cable.

·         Cost of the project is $52 per meter to lay 4 km (4000m) cable.

·         Project duration: 08 weeks

·         Equal amount of cable will be laid in each week (Per week 0.5 km)

·         Current week – 05

·         Cable laid – 1800M

·         Calculate – EV, SV, CV, SPI, and CPI?

 

Problem 5:
BAC ($)	208000.00
Total Duration (Wks)	8.00
After 05 Weeks:
Planned % Complete  (2.5 KM / 4.0 KM)	62.50%
Actual % Complete (1.8 KM / 4.0 KM)	45.00%
Planned Value (PV)($)	130000
Earned Value (EV)($)	93600
SV (EV-PV) ($)	-36400
SPI (EV/PV)	0.72

 

So the project is behind schedule.

 

 

Thanks & Regards,

▲T/DG THE DIGITAL GROUP

Arun Manglick Project Manager (PMP, CSM, MS-Project) Digital Group InfoTech Pvt. Ltd. Pyramid building, Plot No.5 Rajeev Gandhi InfoTech Park, Phase I, Hinjewadi, Pune - 411057,  India   Office: +91 20 66532084 Fax: +91 20 66532052 Mobile: +91 9850901262

 

 

 

 

 

 

 

 

 

 

 

Project Inititation Document

Project initiation document

The Project Initiation Documentation

Ø  It is assembled from a series of other documents, including the Business Case, the Terms of Reference, the Communication Plan, the Risk register, the Project Tolerances, the Project plan, and any specific project controls or inspections as part of a departmental Quality plan or common project approach.

 

Ø  The PID represents a detailed version of the basic project start-up document called the Project Brief.

Ø  In short, this is the, "What, Why, Who, How and When", part of the project.

Ø  PID is a guide to a project, clearly laying out the justification for a project, what its objectives will be, and how the project will be organized

Ø  Bundled together, the PID forms the logical document that brings together all of the key information needed to start and run the project on a sound basis.

Ø  The amount of detail included should be sufficient for the reader to understand the basic purpose of the project and to determine, in principle, the overall feasibility of the project objectives and plan.

 

Ø  It is the document that goes before the Project Board for sign- off to commence a project.

Ø  It should be conveyed to all stakeholders and agreed and signed off by the business sponsors

Ø  The PID is supported by many detailed planning documents that may not be entirely completed by the time that the PID is prepared.

Note: You can also use a Project Charter instead of a Project Initiation Document for these purposes as they are very similar documents. However, a Project Charter usually has less detail. So a Project Initiation Document is more suited to projects where you have the resources to write a more detailed document.

A Project Initiation Document often contains the following ^[3]

Section 1: What?

This section tells the reader what the project is seeking to achieve. In it, describe the problem that the project is seeking to solve, as well as a full definition of the project.

This section will typically cover the following topics:

Background
What is the context of the project, and why is the work needed? Briefly describe the idea or problem, and discuss why this project is relevant and timely. The details will come later, so use this section to highlight briefly how this project came to be.

Project Definition

• Purpose: Why are you doing this work? Describe the desired end result of this project.
• Objectives: What specific outcomes will be achieved, and how will you measure these outcomes? Remember to limit the number of objectives for your project – four or five goals are typically enough.
• Scope: What are the boundaries for this project (for example, type of work, type of client, type of problem, geographic area covered)? List any areas excluded that you believe stakeholders might assume are included, but are not. The more specific you are, the less opportunity there is for misunderstanding at a later stage in the project.
• Deliverables: What will the project deliver as outputs? Where you can, describe deliverables as tangible items like reports, products, or services. Remember to include a date that each deliverable is expected. You'll use this information to monitor milestones.
• Constraints: What things must you take into consideration that will influence your deliverables and schedule? These are external variables that you cannot control but need to manage.
• Assumptions: What assumptions are you making at the start of the project? If necessary, schedule work to confirm these assumptions.

Section 2: Why?

Build a business case to show why your project is going ahead. Describe the effect the project will have on the business, and support this with a detailed account of the risks that should be considered.

Business Case

• Benefits: Why are you carrying out this project, and what benefits do you expect it to deliver? Include information on how these benefits will be measured. For more on benefits management, click here.
• Options: What other courses of action were considered as this project was designed and developed?
• Cost and Timescale: Provide a breakdown of project costs and related financing.
• Cost/Benefit Analysis: How are the costs of the project balanced against the expected returns? For details of how to construct a cost/benefit analysis, click here.

Risk Analysis

• Risk Identification: Identify the risks within the project, and that you'll either need to manage or accept.
• Risk Prevention: Describe what you are going to do to mitigate or manage risks.
• Risk Management: Where you can't prevent risks, what are your contingency plans for dealing with them? What actions will you take should the risk materialize?
• Risk Monitoring: What processes do you have in place to routinely assess the risks associated with your project?

For more on how to identify and manage risk, click here.

Section 3: Who?

Describe how the project will be organized and managed. Identify reporting lines, and outline specific roles that will be filled. You need to be clear about staff roles so that you don't duplicate responsibilities, and so that everyone is clear about what's expected of them. If this is a long-term project, you may even consider developing job descriptions for team members.

Roles and Responsibilities

• Project Organization Chart/Structure: Create a diagram that shows the lines of authority and reporting for each project team member.
• Project Sponsor: Who has the ultimate authority and control over the project and its implementation?
• Project Manager: Who is the Project Manager, and what are his or her responsibilities?
• Project Team: Who are the key members of the project team? What are their roles and job descriptions? What are their phone numbers and email addresses? What is their original department or organization? And to whom do they report to on a daily basis?

Section 4: How and When?

Provide broad information about how the project will be implemented. Outline how the project will roll out by defining timelines, resources, and management stages. This is a high-level overview that will, as the project proceeds, be supported by more detailed project planning documents.

Initial Project Plan

• Assignments: What major tasks (with milestones) will be completed during the project?
• Schedule: Provide a report of the estimated time involved for the project. You've probably already prepared a high level Gantt chart or similar schedule, so the PID simply summarizes the anticipated schedule.
• Human Resources: How many days activity will be needed to complete the project? How many support staff will be needed? Will you need to bring more people onto the project team?
• Project Control: How will progress be monitored and communicated?
• Quality Control: How will the quality of deliverables be evaluated and monitored?

Hope this helps.

Reference: Link1

Regards,

Arun Manglick

Project Manager – PMP, CSM