Earned Value

Hi Carl

Thank you for your question.

We have a blog dedicated to project training which you can find at

https://www.stl-training.co.uk/b/category/project-training/

which has an article on this subject:

https://www.stl-training.co.uk/b/how-to-effectively-monitor-your-project-by-learning-earned-value-equations/

We saw on the training that a useful place to start with Earned Value is to work with some simple numbers from your Project. For example:

Budgeted Cost of Work Scheduled (BCWS) - what we agreed we'd spend to complete the project
Budgeted Cost of Work Performed (BCWP) - what we agreed we'd pay for the work that's been completed
Actual Cost of Work Performed (ACWP) - what we really paid for the work completed.

With these figures we can do some simple analysis. For example Performance Indices can be calculated:

BCWP/ACWP = CPI or Cost Performance Index. If it's less than 1 the project is over spending

BCWP/BCWS = SPI or Schedule Performance Index. This time a result less than 1 means the project is behind schedule

The following related Microsoft article may also be of interest:
http://office.microsoft.com/en-us/project-help/analyze-project-performance-with-earned-value-analysis-HA101819808.aspx

And one more link for you: https://www.stl-training.co.uk/post-29374-ev.html #ixzz2TAKTrweW


I hope this helps.

Kind regards,
Andrew