Deriving PV,EV and AC with an Excel Sheet
For executing Earned Value management or Analysis effectively you need to calculate 3 important data which is crucial. The following are discussed earlier also to make it much more comfortable when its reinforced here.
PV:Planned value is also called as Budgeted Cost of Work Scheduled(BCWS). Authorized budget for planned work. Based on this budget we estimate our quote and profitability in the initial stage of the project.
EV:Earned Value is also called as budgeted Cost of Work Performed. Authorized budget for work actually completed. This what we are supposed to have spent on the project.
AC:Actual Cost is also called as the Actual Cost of Work performed. The cost actually incurred in completing the work actually achieved. This will be based on the actual resources and efforts spent on the project. Precisely based on the % of work we have completed.
Lets assume there is an project which starts on 2nd Feb 2010. We have planned to use 2 resources and 88 Man hours to complete the project for going live. During the execution of the project we want to have an reality check on the project using Earned Value Analysis/Management Techniques. We want to do it as on 8th Feb 2010. So we need to check how much of task has been actually completed on 8th Feb 2010, by representing the work completed in %.
Task A is 100% completed.
Task B is 100% completed
Task C is 75% completed with an alternative resource due to non-availability of resource.
Task D is 50% completed due to an sudden resource change in Task C.
If you refere back to the excel sheet on workings you will be able to figure out the following facts on on PV, EV and AC.
Planned Value/BCWS : 6080
Earned Value/BCWP : 4448
Actual Cost/ACWP : 5744
So the project is over budgeted and beyond schedule. In my next blog we will discuss on the on the various parameters which can be determined using these three derived values (PV,EV and AC).
Please find the attached excel sheet which helps you understand more on calculating the same.
EVM (Earned Value Management Template Sample)
Other useful links:
An Approach with MS Project http://epmcentral.com/articles/evstep1.php
An Wonderful video explaining EVM in simple terms: http://www.youtube.com/watch?v=UggTFk2EiUg (Recommended)