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Practice on earned value

Now you will undertake earned value analysis using the template.

Consider an example: the table below show the progress of a project after 25 days from its start.

Table: ID Activity 1, no predecessors, duration 4 days, budget costs (pounds) 80, actual progress 100%, Actual cost (pounds) 70; ID Activity 2, predecessor 1, duration 8 days, budget costs (pounds) 100, actual progress 100%, Actual cost (pounds) 120; ID Activity 3, predecessor 2, duration 13 days, budget costs (pounds) 150, actual progress 50%, Actual cost (pounds) 80; ID Activity 4, predecessor 3, duration 20 days, budget costs (pounds) 200, actual progress 0%, Actual cost (pounds) 0; ID Activity 5, predecessor 4, duration 14 days, budget costs (pounds) 150, actual progress 0%, Actual cost (pounds) 0; ID Activity 6, predecessor 5, duration 1 days, budget costs (pounds) 10, actual progress 0%, Actual cost (pounds) 0. Key: shadowed activities are the ones planned to be completed at day 25

What can you say about the project? Is it on time? On budget? You can make an evaluation by hand or using the Project value template as you saw in the previous step.

Complete the Project value template with the data from the table above (in the grey area on the template). Copy across values for Budget costs and Actual costs from the table above. For the two progress columns, remember that the project is at day 25 so you’ll need to work out the planned progress at day 25 then copy across the values for actual progress from the table.

You’ll notice that the template calculates all the parameters (BCWS, BCWP, ACWP and the variances) automatically.

Check your understanding of earned value analysis in the quiz that follows.

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This article is from the free online course:

Business Fundamentals: Project Management

The Open University