QUESTIONS A LOCATED AT THE BOTTOM

arned Value Management Case Study

Directions:Use the Earned Value Management Case Study and the work that you did in Week 4 and Week 5 - Case Study Analysis assignments tocomplete this worksheet in the areas indicated.

Step 1 - The Starting Point Calculations

Symbol	Description	Formula	Explanation
PV	Planned Value	None	The estimated value of the work planned to be done thus far. In this case, the project's PV is the estimated cost of $10,000 because we estimated the project would be completed within a week.
AC	Actual Costs	None	The total costs incurred to date, based on timesheets, invoices, other expenses, etc. In this case $9,000
EV	Earned Value	Sum of all (Task Budget * % Completed)	The estimated value of (intended) work completed thus far, as it relates to the expected deliverables.

(Table 2)

PV (Planned Value) and AC (Actual Cost) are easily derived. PV is based on what should have been completed thus far. For multi-period projects, it will seldom equal the full budget figure. The idea is to calculate a figure that represents "the amount of intended work; the work performed (thus far) in relationship to the assigned tasks." In reality, EVM analysis will be done over several periods and the value for PV will be constantly changing.

To derive EV, multiply the budget figure by the percentage of all tasks completed (see Table 1). For example, Bob was given 20 hours to complete 4 subtasks. He estimated that 60% of the subtasks are completed. You multiply $2,000 by 60% and this gives a value of $1,200. So you can clearly see that Bob's (real) work does not equal the actual cost of $1,500. As a result, Bob has fallen behind (in schedule and cost) based on this one calculation.

Directions: Complete the table below by calculating PV, AC, and EV for the entire project.

Term	Value	Notes
PV	$10,000	On Budget
AC	$9,000	Invoice Submitted thus far
EV	$5,500	($2000*60%) + ($2000 * 75*) + ($2000*10%) + ($2000 *50%) + ($2000 * 80%)

Again, we can see that the group as a whole has fallen behind on their work.

Directions: Using the data you created, address the following questions.

• How much has been submitted in dollars as the cost? Explain.
• How much did they produce in dollars of earned value? Explain.
• How much is the project over budget? Explain.
• Is the project ahead or behind schedule? Explain.