Free Custom «Earn Value Management» Essay Paper

The technique of Earn Value Management assists project managers maintain updates on project status as well as forecasting its performance in future.

The following formulae are helpful in completion of the status reports:

1. Earned Value (EV) = Base line cost X Actual % Complete
2. Actual Cost (AC) = Hourly Rate X Total Hours Spent
3. Planned Value (PV) = Hourly Rate X Total Hours Planned or Scheduled
4. Cost Variance (CV) = Earned Value (EV) – Actual Cost (AC)
5. Schedule Variance (SV) = Earned Value (EV) – Planned Value (PV)
6. Budget At Completion (BAC) = Baselined Effort hours X Hourly Rate

1. End of Period 4

Task Actual % Complete EV AC PV CV SV

A Finished 400 300 400 100 0

B 50% 1200 1000 800 200 400

C 33% 495 500 600 -5 -105

D 0 0 0 0 0 0

E 0 0 0 0 0 0

Cumulative Totals 2095 1800 1800 295 295

Task Actual % Complete EV AC PV CV SV

A Finished 400 300 400 100 0

B Finished 2400 2200 2400 200 0

C Finished 1500 1500 1500 0 0

D 25% 400 300 400 100 0

E 33% 297 300 300 -3 0

F 0 0 0 200 0 -200

Cumulative Totals 4997 8600 5200 397 -200

At the end of period 8, the following information is available to the customer

1. The project is halfway done. 50% of the tasks are complete.
2. Work in progress is at 25 % for task D and 33% for task E
3. No work has been completed on task F
4. The project is still on course