![Well, it’s a little involved…
Estimate at Completion
(EAC)
Actual costs to date plus remaining budget (current
variances viewed as atypical of future variances)
Actual costs to date plus remaining budget modified
by a performance factor (CPI) (current variances are
viewed as typical of future variances)
EAC = AC + [(BAC - EV) / CPI]
~EAC = BAC / CPI
Q8](https://image.slidesharecdn.com/evmexcercise-240617101625-9c1b57be/85/EVM-excercise-EVM-excercise-concepts-fundamentals-16-320.jpg)
EVM excercise EVM excercise concepts & fundamentals
- 1. CSSE 372 Software Project Management: Earned Value Analysis (EVA) Exercises Shawn Bohner Office: Moench Room F212 Phone: (812) 877-8685 Email: bohner@rose-hulman.edu
- 3. Learning Outcomes: Plan (verb) Create a plan for an intermediate size software project and manage to the plan. Maintain a software project schedule. n Do some Earned Value Analysis n Examine Estimated to Complete Values n Determine good and bad Trends in the progress
- 4. You have the WBS and have identified the activities. Where do you start with Earned Value Analysis? n Think for 15.11 seconds… n Turn to a neighbor and discuss it for a minute n Then can we tawlk?
- 5. Earned Value Exercise (PV, AC, EV) Task – Develop and install ten printer drivers. • Budget - $100,000 ($10K per printer driver) • Time – 10 weeks (1 printer driver per week) At week 5: • 4 printer drivers developed and installed • $47,500 spent to date PV = $??? AC = $??? EV = $??? Q1, 2, 3
- 6. Derived EVA Metrics: CV and SV Schedule Variance n Comparison of work performed during a period of time to what was scheduled to be performed n Negative SV means the project is behind schedule Cost Variance n Comparison of the budgeted cost of work performed with actual cost n Negative CV means the project is over budget Q4 CV = EV–AC SV = EV–PV
- 7. Cost Variance (CV) CV = EV - AC = $??? Good News: If CV value is positive, the project is currently under budget (spending less than planned for the work) Bad News: If CV value is negative, the project is currently over budget (spending more than planned for the work) Earned Value Exercise (CV)
- 8. Cost Performance Index (CPI) CPI = EV / AC = ??? Good News: If CPI value is >1 or =1, the project cost trend is currently under or at planned budget Bad News: If CPI value <1, the project cost trend is currently over budget Earned Value Exercise (CPI) Q5
- 9. Cost Variance % (CV%) CV% = CV / EV = ???% Good News: If CV% value is positive, the project is currently under budget by the CV% Bad News: If CV% value is negative, the project is currently over budget by the CV% Earned Value Exercise (CV%)
- 10. Awkward!!!
- 11. Schedule Variance (SV) SV = EV - PV = ??? Good News: If SV value is positive, the project is currently ahead of schedule Bad News: If SV value is negative, the project is currently behind schedule Earned Value Exercise (SV)
- 12. Earned Value Exercise (SPI) Schedule Performance Index (SPI) SPI = EV / PV = ??? Good News: If SPI value is >1 or =1, the project schedule trend is currently ahead or on planned schedule Bad News: If SPI value <1, the project schedule trend is currently behind schedule Q6
- 13. Earned Value Exercise (SV%) Schedule Variance % (SV%) SV% = SV / PV = ???% Good News: If SV value is positive, the project is currently ahead of schedule Bad News: If SV value is negative, the project is currently behind schedule Q7
- 14. Earned Value Exercise PV = $50,000 AC = $47,500 EV = $40,000 CV = -$7,500 CPI = 0.84 CV% = -19% SV = -$10,000 SPI = 0.80 SV% = -20% Task – Develop and install ten printer drivers. • Budget - $100,000 ($10K per printer driver) • Time – 10 weeks (1 printer driver per week) At week 5: • 4 printer drivers developed and installed • $47,500 spent to date
- 15. But, when will we complete? Estimate at Completion (EAC) Actual costs to date plus a new estimate for all remaining work (original plan no longer valid) EAC = AC + ETC (ETC Estimate to Complete) Q8
- 16. Well, it’s a little involved… Estimate at Completion (EAC) Actual costs to date plus remaining budget (current variances viewed as atypical of future variances) Actual costs to date plus remaining budget modified by a performance factor (CPI) (current variances are viewed as typical of future variances) EAC = AC + [(BAC - EV) / CPI] ~EAC = BAC / CPI Q8
- 17. Project: Alpha C C C C C C S S S S S S C S S C Under budget Ahead of schedule Over budget Behind schedule 1.0 0.8 0.6 0.4 1.2 1.4 1.6 Project Week 8 7 6 5 4 9 3 2 1 Earned Value – Performance Indices Good Progress
- 18. Project Week 8 7 6 5 4 9 3 2 1 1.0 0.8 0.6 0.4 1.2 1.4 1.6 C C C C C C S S S S S S Under budget Ahead of schedule Over budget Behind schedule Project: Beta Earned Value – Performance Indices Divergent Progress
- 19. Project: Charlie C C C C C C S S S S S S C S Under budget Ahead of schedule Over budget Behind schedule 1.0 0.8 0.6 0.4 1.2 1.4 1.6 Project Week 8 7 6 5 4 9 3 2 1 Earned Value – Performance Indices Losing Ground Q9
- 20. Recall: PV, EV and AC Curves
- 21. Cost and Schedule Variance
- 22. Another View of Cost and Schedule Variance Schedule Variance Cost Variance PV AC EV Time Progress
- 24. Homework and Reading Reminders n Read ahead with Chapter 9 of text for Monday n Complete Homework 5 – Software Schedule ¨ Due by 11:55pm, Tuesday, October 9th, 2012 n Final Project – SW Proj. Mgt. Plan (SPMP) ¨ Completed by team… ¨ Due by 11:55pm, Friday, November 2nd, 2012. ¨ No late days –review swap with another team Complete Homework 6 – Earned Value Analysis ¨ Due by 11:55pm, Tuesday, October 16th, 2012 n Have a great Fall break!