5 (Spring08) EARNED VALUE MANAGEMENT STUDENT OBJECTIVES The objective for the student is to: 1. Learn how to extract Earned Value Management (EVM) variables from project data. 2. Practice calculating EVM indices. 3. Learn how to use EVM data to assess the current and future state of a project. BACKGROUND You are 18 months into the 27-month effort to deliver the Sensor Package Integration Delivery Order; and although you expected to be completed through task 22 at this point, you have only completed work through task 17. Some things are going well, while others seem to be falling behind schedule. Your management has asked for an inprogress review and you want to put your newly acquired EVM analysis skills to work to assess schedule and cost status. The table of completed tasks, along with schedule and cost metrics (located at the end of this assignment) has been provided by your corporate planning and accounting departments. Use the provided information to complete the assignment as detailed below. For your convenience, they have also included an Excel spreadsheet populated with these values (it's probably a good idea to use this as the basis of the assignment response). Note: For purposes of this exercise, we charge a flat rate of $150/hour for every labor hour charged and plan a standard 160-hour month. Also, don't worry about if the durations in the example data don't necessarily match those given in the CPM exercise. You are accumulating Earned Value using the 100% rule - you get 100% of the value when the task is complete. REFERENCES 1. Lesson (PM3/4-11) - Earned Value Management 2. Lesson (PM3/4-12) - Assessment of Cost, Schedule, and Performance 3. Wilkens EVM White Paper ASSIGNMENT 1. Specifically, calculate and report the following cumulative values for the project (show your work): a. Planned Value b. Earned Value c. Actual Cost d. Cost Variance e. Schedule Variance Page 1 Homework 5 (Spring08) f. Cost Performance Index g. Schedule Performance Index h. Budget At Completion for entire project i. Percent Scheduled vs. Percent Completed j. Months ahead of or behind schedule at month 18 k. Percent Spent at month 18 l. Estimate At Completion m. Variance At Completion n. 2. To Complete Performance Index (BAC) Provide an analysis of what these values are telling you about the current and projected health of the project. If there are variances, what could you do to try to bring things back in-line? What recommendations would you make to senior management? What other metrics would you consider tracking? (1-page) Page 2 Homework 5 (Spring08) Where we are Where we planned to be Page 3