20- Earned Value Analysis

20- Earned Value Analysis - Project Management Earned value...

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Hesham A. Aziz 1 Project Management Earned value analysis “EVA” Dr. Hesham A. Aziz
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Hesham A. Aziz 2 Planning Control or Earned Value Management is a reporting discipline which uses the combination of existing data management and planning control environments to generate a unique set of performance and projection ratios and indices to pinpoint specific trends and areas requiring increased management attention.
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Hesham A. Aziz 3 Earned Value Cost/Schedule System An integrated project management system based on the earned value concept that uses a time-phased budget baseline to compare actual and planned schedule and costs.
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Hesham A. Aziz 4 Earned Value Management Earned Value Management is a methodology used to measure and communicate the real physical progress of a plan taking into account the work complete, the time taken and the costs incurred to complete that work. Earned Value helps evaluate and control risk by measuring the progress in monetary terms. By taking a snap-shot of the projected plan and calculating the Earned Value metrics we can compare the planned with the actual and make a subjective assessment of the progress. By extrapolating the curves and further calculation allows estimate the costs to completion and the probable completion date. The basics of Earned Value can best be shown on the ubiquitous 'S-Curve'.
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Hesham A. Aziz 5 Earned value analysis makes use of the following variables: • Actual cost of the works performed (ACWP); • Budgeted cost of the works performed (BCWP); • Budgeted costs of the works specified (BCWS); • Scheduled time for work performed (STWP); • Actual time for work performed (ATWP); • Cost Variance (CV); • Schedule variance (SV); • Budget at completion (BAC); • Estimate at completion (EAC); • Variance at completion (VAC).
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Hesham A. Aziz 6 Glossary of Terms EV The percent complete times its original budget. The percent of the original budget that has been earned by actual work completed. The older acronym for this value was BCWP—budgeted cost of the work performed. PV (Planned Value) The time-phased baseline of the value of the work scheduled. An approved cost estimate of the resources scheduled in a time- phased cumulative baseline (BCWS—budgeted cost of the work scheduled). AC The actual cost of the work completed. The sum of the costs incurred in accomplishing work. (ACWP—actual cost of the work performed).
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Hesham A. Aziz 7 Glossary of Terms CV Cost variance is the difference between the earned value and the actual costs for the work completed to date where CV=EV- AC. SV Schedule variance (SV) is the difference between the earned value and the baseline line to date where SV=EV-PV. BAC
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20- Earned Value Analysis - Project Management Earned value...

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