Earned value concept cost reporting & aggregate performance reporting into one –combines comprehensive chart. A technique for performing quantitative analysis of progress does exist called Value Analysis(EVA) To determine the earned value, the following steps are performed: Baseline cost to completion to as budget at completion (BAC) –referred Actual cost to date to as estimated cost at completion (EAC) –referred several variances according to two guidelines 1.A negative variance is ‘bad’ 2.Cost and schedule variances are calculated as earned value minus some other measure 1. The (BCWS) is determined for each work task represented in budgeted cost of work scheduled the schedule. 2. The BCWS values for all work tasks are summed to derive the budget at completion, BAC. Hence, BAC = (BCWSk) for all tasks k Next, the value for (BCWP) is computed. budgeted cost of work performed Given values for BCWS, BAC, and BCWP, important progress indicators can be computed: Schedule performance index, SPI = BCWP/BCWS Schedule variance, SV = BCWP BCWS – Details to be calculated Percent scheduled for completion = BCWS/BAC Percent complete = BCWP/BAC Cost performance index, CPI = BCWP/ACWP Cost Performance index, CPI = Value / cost to date
value concept –combines cost reporting & aggregate performance reporting into one comprehensive chart. A technique for performing quantitative analysis of progress does exist called Value Analysis(EVA) To determine the earned value, the following steps are performed: Baseline cost to completion –referred to as budget at completion (BAC) cost to date –referred to as estimated cost at completion (EAC) several variances according to two guidelines 1.A negative variance is ‘bad’ 2.Cost and schedule variances are calculated as earned value minus some other measure 1. The budgeted cost of work scheduled (BCWS) is determined for each work task represented in the schedule. 2. The BCWS values for all work tasks are summed to derive the budget at completion, BAC. Hence, BAC = (BCWSk) for all tasks k Next, the value for budgeted cost of work performed (BCWP) is computed. Given values for BCWS, BAC, and BCWP, important progress indicators can be computed: Schedule performance index, SPI = BCWP/BCWS Schedule variance, SV = BCWP – BCWS Details to be calculated Percent scheduled for completion = BCWS/BAC Percent complete = BCWP/BAC Cost performance index, CPI = BCWP/ACWP Cost Performance index, CPI = Earned Value / Actual cost to date