EARNED VALUE ANALYSIS FOR PROJECT CONTROL

Presentation

SubmittedTo
Dr. Prof. Ashok Kumar Gupta
(HOD, Deptt of Civil Engineering)
By
RISHAB ATTRI [182601]

Department of Civil Engineering

JAYPEE UNIVERSITY OF INFORMATION TECHNOLOGY, WAKNAGHAT
November, 2018
Concept

 Earned Value Analysis (EVA). Is a Project Management control technique

which integrates Scope, Schedule and Cost data for objectively measuring project
performance and progress.

 Performance is measured by determining the budgeted cost of work performed

(i.e., earned value) and comparing it to the actual cost of work performed (i.e., actual
cost) and the planned cost of work performed (i.e. planned cost).
Definitions

Abbreviation
Concept Description
Budget at Completion BAC Baseline cost of 100% of the
project.
Actual Cost AC Total costs actually incurred so far.
Amount of budget earned so
Earned Value EV far based on physical work
accomplished, without
reference to actual costs.
The budget for the physical work
Planned Value PV scheduled to be completed by
the end of the time period.
Metrics

Abbreviation
Concept Description
Measure of cost overrun.
Cost Variance CV
CV = EV – AC
Measure schedule
Schedule Variance SV
slippage. SV = EV –
PV
Cost efficiency
Cost Performance Index CPI
ratio. CPI =
EV/AC
Scheduled Performance Index Schedule efficiency
SPI
ratio. SPI = EV/PV
Expected total cost based on the current
Estimate at Completion EAC cost and schedule efficiency ratios.
EAC = AC+((BAC-EV)/(CPI*SPI))
Numerical

 The project is to build a 4 wall room. The cost per wall is 10,000 Rs. and it will
take 1 day to construct 1 wall. At the end of the 3 day we have finished 2.5 walls
and our actual cost is 28,000 Rs. then our values are :

Budget at Completion (BAC) = 40,000 Rs.

Actual Cost (AC ) = 28,000 Rs.
Earned Value (EV) = 25,000 Rs.
Planned Value (PV) = 30,000 Rs.
Calculations of project

 Cost Variance is CV = EV – AC = 25,000 – 28,000 = -3,000

we are over budget by 3000 Rs
 Scheduled Variance is SV = EV – PV = 25,000 – 30,000 = -5,000
we behind scheduled by 5000 Rs
 Cost Performance Index is CPI = EV / AC = 25,000 / 28,000 = .89
For each 1000 Rs we spend as per project we gain the output of 892 Rs
 Schedule Performance Index is SPI = EV / PV = 25000 / 30000 = .83
We are behind schedule by 17 %.
 Estimate at Completion is EAC = AC+((BAC-EV)/(CPI*SPI)) = 48,300
If we continue with the same efficiency rates, we might end up with a total cost of
48,300 Rs.