Using the earned value management report
In the reports tab, you find the earned value management report. We think this is very important and above all, very much appreciated by your manager. We also made it part of the Highlight Report you can find in our e-course Cost Management (Pro course).[divider] [action_call text=”Microsoft Project Introduction Course” button_url=”https://members.ms-project-elearning.com/vsl-order-form” button_text=”Purchase Now for only 0.99 USD”] [divider]
The new term EAC is also explained here. This stands for the Estimate At Completion. In other words, if we extrapolate the current progress against the baseline to the end of the project, this will be the total costs of the project (16-17 days for ten paintings at my hourly rate).
Earned Value over Time
The graph Earned Value over Time shows the earned value of the project based on the status date.
- If the actual costs (ACWP = blue) are higher than the earned value (BCWP = orange), the project budget has been exceeded. For example, I have painted three paintings for a higher hourly rate.
- If the scheduled value (BCWS = gray) is higher than the earned value (orange), the project is behind schedule. For example, I have finished less paintings than I expected to have on this (status) date.
Variance over time
The graph Variance over time shows costs and efficiency variances for the project based on the status date.
- If CV (cost variance, the price difference) is negative, the project is exceeding budget. For example, I have painted three paintings for a higher hourly rate.
- If SV (schedule variance, the efficiency difference) is positive, the project is behind schedule. For example, I have finished less paintings than I expected to have on this (status) date.
Indices over time
The graph Indices over time shows the performance index for cost and schedule based on the status date. The greater the performance index, the better the project is on schedule (SPI) and the more costs are saved (CPI).
So what do you need to get these amazing reports?
Let us consider the following example:
I have to make ten paintings (scope) in ten days (duration). We sell them at $100.- each (cost information). At the end of day 5 (status date) I finished only 3 paintings (progress information).
What do you need in our schedule?
- Baseline scope and duration: ten paintings in ten days
- Cost Information: Selling price of $100.- each
- Status Date
- Progress information: Marking tasks complete
Do you use or do you consider using earned value management techniques in your MS Project schedule?
Share it in the comments below.