Earned value analysis worked example
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- čas přidán 19. 02. 2015
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Project Management Tutorial: Earned value analysis worked example.
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For people taking the PMP exam and are looking for help with earned value, make these substitutions: BCWP is the same as EV. BCWS is the same as PV. ACWP is the same thing as AC. This video was great once I mentally made those changes.
Yes, thanks for the contribution!l
Thank u
PMBOK 6th Edition:
ACWP = AC
BCWP = EV
BCWS = PV
Very helpful, thanks!
Thanks dude very helpful
Thanks Bro, great video, example and explanation. But this had me puzzled, was thinking to figure this out after watching the full video. Your quick tip helped.
BCWS = PV is wrong. correct is pv =BCWS-ACWP
pv =BCWS-EV
You explain it so well and make it easy to understand. I've watched this 4 times and gone from not knowing anything about Earned Value Management, to being able to teach it at a basic level. Came back to make sure I clicked like!
You literally got me through my project management course this semester, I couldn't afford the book. thank you so much, you do an awesome job at explaining analysis processes and most importantly their significances
Thanks for letting me know, I'm glad I could help 🙂🤗
As many of the other commenters has pointed out, you do a very good job explaining this and are very concise.
You describe every detail, extremely good video! Thank you!
Very clear and smooth explanation. This guy is a great instructor.
+A. Huckamee Thanks for the nice feedback! Glad to hear you found it helpful :)
Ur real jewel of a person..Spending your valuable time for mine kind of people who seeks engg mnmt knowldge is a great Cause..Thanx for uploading videos and they are very simple to interpret..Love from India 🇮🇳 and Nz🇳🇿loads of respect 🙏👍
Thanks Anish! Really appreciate your comment 🙂. Love back from 🇨🇦Canada where I'm from and 🇱🇦Laos where I am.
Thank you for the simple yet effective explaination!
You're welcome, thanks for watching! You should check out the full playlist here: engineer4free.com/project-management 🤜🤛
Thanks a lot. It became so easy after the explanation. The tables are beautiful!
Great!! Glad you liked it. Check out engineer4free.com/project management if you haven't already, for the rest of the PM videos that I did!
for BCWP of "Activity C" you could have said 33% of 1200= 396... I nearly got confused for a sec there but well done. It's my first time doing this and watching this video made me understand the concept so quickly. Thank you
Yeah sorry that's just rounding. really it's 33.3333333333333333333333333...%, but glad you got it figured out =) =).Make sure you check out engineer4free.com/project-management for all the tutorials if you haven't already!
You saved me there...i was expecting 396... so I was really confused as to why 400...but now it's clear that it was rounded
Perfect and to the point, very lean
Thank you very much! All videos are well and simply explained. Greetings from Greece.
Thanks!!!
I've never touched project management before. And I was confused looking at other videos and resources with formal lingo, until I found this GEM. I'm tempting to buy their hoodie right now after watching this video =))
Glad I can help!! You should check out the full PM playlist that I did here: engineer4free.com/project-management =) =)
Great example, and thank you for this.
+Joe Cooper Thanks for the feedback! Glad to hear its making sense!
You're so welcome, I can't understand why so many people who I know have seen this, but refused to show application for your work.
Ooh now my exam doesn't seem so hopeless!
am a student who studies on her own for CIPS advanced diploma, no teacher where I am actually.. and I have been proned to this chapter which I've found a little confusing to understand or to table it out. I just want to let u know, if a question on EVA comes out, I'll succeed because of this video! Am sure of it! Thanks again for the good job, may u be bless, this is soooo helpful!
Hey awesome I'm glad I can help you out! Make sure you check out all of my PM videos at engineer4free.com/project-management the EVA ones are numbers 33 - 38
Thank you so much , that was so tough for me to understand before watching these videos
Glad to hear it Ahmed 😊
I hope this would help me with my Examination tomorrow
Hope so! How did it go?
I just love the way you are able to clearly explain all these concepts! I do not know how much I have heard and read of Gant charts, yet I could never quite understand how it was put together!! and now I am just like: ddduuuhhh!! this was it? I am just in 2.45 min of the video and had to stop to make that comment! there are a few other concepts that I could not understand either but I am never disappointed when come here! you are a God sent!
=) thanks for letting me know!! And glad I can help. There are more videos here too: engineer4free.com/project-management The Earned Value Analysis ones are #33 - 38
Thanks a lot!... God bless!
I am from Vietnam and I thank you for your video, it was very helpful
Chúc mừng năm mới!! 🇻🇳
Excellent example
Thanks for this video! Really helped me alot. I have one question: Why do activity C and D are expected to end on day 6?
Thank You! This video actually made sense compared to my textbook!
hahaha glad I can help :p
@@Engineer4Free Of course it made sense haha... This guy is the master of PM. I've learned more from him than from my whole Master's degree program in Project Management hahaha
Very helpful video for a particular capstone! =)
Well explained. Thank you
I have given up on trying to ask my professor for help. I am just watching these instead! Thank you.
Great video, it would be good to add here, ETC and EAC for full picture...
Question though. How do you deal with earn value and fixed costs and cost resource?
Thank you, that was very useful
Very Helpful! Thank you
You're welcome Chris! Thanks for the comment =)
Hi, can I considere Deliverables or Objectives instead “activities”? Or different projects instead activities? I mean, if I am working with a portfolio. Or should I do the maths with weighted average?
Really great video Thanks for your contribution. Brilliant
Thanks for writing! Make sure you check out engineer4free.com/PM for the rest of the tutorials :)
Great video and well explained. Thanks
chris long Thanks for the feedback!
Thank you for the explanation.
Just to clarify BCWP AKA Earned Value (EV) ; BCWS AKA Planned Value (PV)
Hi I just wanted to ask if activity C was 80% done, would it’s BCWP be the same as the BCWS because by the time the report date has been reached the same amount of work has been done as the BCWS?
Very helpful, thx a lot
Hi, suppose if Activity B is only 66.6% complete, is it 3 days behind schedule from the reporting date, or do I consider it as 1 day (the unshaded part)?
Very nicely explained !!
Glad you liked it!! =)
best video on EV
Thanks Rajat! ☺️
First of all thank you for your describing. Is it different by using 50-50 rule of calculation the BCWP (ev)?
thankyou...:) great work
helpful. well explained. :)
Well exlained
Very useful video! Thank you!
You're welcome!
excellent, very well explained!
Many thanks!
2:27 you can't start activity E before completing D. D is a predecessor to E. If D is behind schedule, the whole project is behind schedule.
Yes. Note that on this diagram "7" represents both the end of day seven, and the beginning of day eight. If the project was on schedule, at this moment of reporting, we were expecting D to have been finished (at the end of day seven) and E to just be starting (at the beginning of day eight). The whole project will indeed finish late unless somehow a day is saved during activity E.
Thank you, great help
You're welcome! Glad it helped =)
I wonder why they wrote the textbook in such a nonsense format. Great job sir
ya me2 🤔
Does a SPI of 0.5 mean that you would predict that the whole project is going to take twice as long as planned? Can you use it to forecast finish date, at least approximately? Is that the point of SPI / what it is used for?
Yes, you are right in what you're thinking. Check out videos 33 - 38 here: engineer4free.com/project-management for a few more explainers on SPI etc, and some ways that you can use it to make predictions too.
@@Engineer4Free - this is great, at last I've found someone with a brain who really understands SPI! There is something that's been worrying me about SPI for a while and I really hope you can help. either I've missed something or the whole world of PM has missed something...! So, SPI is based on VALUE of work planned / performed, so the degree of lateness depends on the VALUE of what you should have done but haven't. so if the part you haven't done is something expensive (e.g, painting with gold paint) then SPI makes you looked later than if the part you haven't done is something cheap (e.g. painting with ordinary paint). That's right isn't it? But this is clearly crazy - because it shouldn't matter whether the painting I should have done but haven't is with gold or other paint, it's still the same degree of lateness. The forecast finish date should still be the same. Why should COST, or value, affect the forecast finish date? Does this question make sense? If not I can send you an example? I'd love to get to the bottom of this, I'm not a fool, I've thought about it a lot, and I think there is a flaw in the whole SPI methodology. Help me to change the world of PM thinking on this!!
Thank you
Thanks that helped alot ❤️
Glad it helped!
Great video. One Question. How would I deal with the incurred cost of task C $500 in MS Project?
Hey thanks for watching and commenting. It's been too long since I used MS project so I can't remember the exact process. Sorry, good luck!
Really liked the example
Thanks Aswani!!! 🙂
Thanks Aswani!!! 🙂
Bcwp of activity C would be 33% of 800 or 1200? I think it should be 33% of 800 because we are calculating the performance of 7 days not 8 days,,, am I correct ? Please answer me.
Mmmm it should be 33% of 1,200. The reason is in the wording. The budgeted cost of work performed. One third of the work for a three day project was performed at the time when the report was taken. Ignore the cost that was actually incurred, because we are concerned with the budgeted cost. The budgeted cost of this activity is 1200 in total, or 400 for each day. The digested cost of the work that was actually performed is 1200/3=400. The budgeted cost of work performed is not the same as the actual cost of work performed, that would be 500 for activity C.
thank you
I am working on as assessment for EVA, we were given an excel sheet with calculations. Total plan for 6 months with dollar values for BCWS are given, ACWP and BCWP till September are given. In the sheet given to us rolling status is provided and calculations for SC, SPI, CV, CPI are done based on the rolling status. In your example you have not taken that rolling status, now I am confused if I should do rolling status or not. and If i should consider the calculations for BCWS till October or till only September. Please help. Please let me know if you have not understood my concern.
thank you sir.. you really help me so much :)
thumbs up for you sir
Thanks for the comment :) glad the videos are helping!
I've been going through hours of reading lecture notes to understand earned value management.. But it took me just 10 minutes to understand this just by watching your video.. Thanks again :)
No worries! If you haven't already, make sure you check out engineer4free.com/project-management for the rest of the videos :)
What pen are you using kind sir? How are you able to write so accurately!?
thank you ,,, great work
Thanks, you're welcome ☺️
what would you do if a question says
for example Activity budget % complete actual cost
F 600 0 200
so that even though the activity hasn't started 200 is spent
thanks sir, very helpful
You're welcome!! 🙏
I have a quick question. On the reporting date if you are behind on some of the tasks but you have completed some of the tasks which were planned to be completed after the reporting date. Can you take credit of that work to compensate for the poor SPI or CPI on reporting date?
Yeah it would skew it in the positive direction, where as being behind skews it in the negative direction
THANK YOU SO MUCH.
YOU'RE WELCOME.
Thanks
so I have my CAPM from PMI and looking for an internship in project management. Any help in landing one? anybody want to give me a chance?
Good luck!!!
If the activity is 100% completed with a BCWS of 4, an ACWP of 6 and a planned duration of 2 days what would the BCWP be?
This is a GREAT video. Is there anyway for me to save this?
+Ashley Maddox Thanks for the compliment! I currently don't have any options for downloading, you'll just need to favorite it on CZcams or bookmark the website: www.engineer4free.com/project-management
Thanks for sharing. really helpful
Martin Karuiru Glad you found it helpful!!
Gr8 video...it helped me a lot😍😘
Glad to hear it! 😘
Hi, which theory literature peer review you used or is it OK to share ,if you know? Need for my writting module. Thanks
The method used in this video was taught to me by a professor teaching project management at the undergraduate level in a Canadian university several years ago.
thank you! i think i will pass my exam now
I hope so!!
so... did you make it?
Thank you so much
You’re welcome =)
Given a total quantity of 12000 CY of concrete to be placed, at a cost of $400/CY. At the 40% schedule point, the contractor placed $2,160,000.00 worth of concrete. What is the CV? Can you help solve this problem. Thanks
Great Video
Thanks Mohan 😊
Sir what is difference earned value approach, earned value analysis, and earned value Management
Good video. Question: why did you record BCWP for Activity B as 1200 if the incurred cost was 1400? Who pays that 200?
Thanks! Assume our project is to build a house, and that activity B is painting the walls. The painters told us that it would cost $1200 before they got started. But on day 7, we get a report back that for some reason $1200 wasn't enough, and it actually cost $1400. Like for example if the painters are our actual employees, and we pay them $100 per hour, and they thought it would take 12 hours, but it actually took them 14 hours, then we really have to pay them $1400, because that's what employers do. So we (the project owner, or manager) have to pay the extra $200. Thats just one example of why the cost of work scheduled may be different from the actual price paid for that work. Hope it clears it up!
Hey, this is really helpful! But, can I ask you a question? For the BCWP in the activity C, why can't we just calculate it as 33% multiply by actual cost? I'm genuinely curious and maybe miss some of details. Thank you in advance!
Yes you can do that too!
Hi Engineer4free, may I know what is the whiteboard tool you are using. Is it something to WizIQ. Thanks in advance.
Hey, you can find a full list of the software/hardware that I use at www.engineer4free.com/tools
Thanks but actually wanted to know the tool for recording video screen
Got it! Camatasia. Thanks.
hi, how did you get the table up the screen. I dont find options. Or is it available only in subscription version.
I didn't use any subscription software to make this video. Sketchbook Express came free with the tablet, and Camtasia for Mac was a one time purchase. I just made the tables in Google Docs, took screenshots and pasted them into the drawing program.
With this example it doesnt explain where the % completes come from. What determined the task D to be 50% for example? Whats the basis of measurement of this task performance?
At 0:08 I mention that it is from a field report. IRL, a schedule for a project is made, then people attempt to carry it out, and sometimes it goes faster or slower or costs more or less than originally planned. Most of my PM videos revolve around planning before execution, but this video is an example of how to interpret the field results that are not determined by us, but by the actual performance of other people/circumstances. So the a person in the field reported to us that Task D was half done, and they would have their own criteria, for example, it could be as easy as they are building a wall and have half of it up, or for a more complicated task it might not be so easy, but that would entirely depend on the context. This video is just about how to take someone else's field report and interpret the status of our active project. Hope that helps clear it up.
PLEASE MAKE MORE VIDEOS!
Hey Jei thanks for the comment. More are in the works
For activity C, how did we determine that only 33% of work is completed..is there a tool or calculation?
We are the off-site Project Manager, and the person in the field has delivered the report in the bottom left corner to us. Because we are at the end of day 7, we expect 66% of activity C to be completed based on the original Gantt chart, but they are telling us that in reality things are moving slower, and it is only 33% done.
@@Engineer4Free Yes. It is says on the chart 33% complete. Also, the expected work to be completed was 66%. if the work is not completed to 66% as estimated... how do we conclude it is 33%, 40% or 10%. How did the field report or any report can calculate % of work completion unless not assumed.
Thanks alot
You're welcome Sana!
How did bcws of activity d come 400, shouldn't it be 200 if bcws of activity c is 800, you calculated c to be 2/3. So shouldn't d be 1/2 of 400
hi~I am wondering how to know the report day is 7?
That would be given to you in a problem, as well as the level of completion of certain activities, and from there you can assess the situation.
The video does not properly define what "actual % complete" is. What is the numerator and denominator? It is apparent (maybe) that "actual % complete" = actual duration/baseline duration, or actual duration/total duration, where total duration = actual duration/(actual duration + remaining duration). What happens if Task A took 3 days actual instead of 2 days? It is still finished, but is the "actual % complete" 100% (ie 3 days/3 days) or 150% complete (ie 3 days/2 days)? Well, it can't be 150%, has to be 100%.
This is a pretty simple model that is designed to compare anticipated results with actual results. You can check out a few other videos that I did on the topic, they are videos 33-38 here: engineer4free.com/project-management . They are all at an introductory level.
why didnt you fill out the rest of the chart? that was the main information i needed
See videos 34 and 35 here: engineer4free.com/project-management
exellent
Thanks
BCWS of activity D will be 200 instead of 400
Mmmm BCWS stands for “budgeted cost of work scheduled.” By the time of the report, D was scheduled to be completed. And at $200 per day, $400 of work on activity D was scheduled to be complete. So the BCWS is $400. The BCWP is $200 (which is the budgeted cost of work performed), as only $200 of budgeted work was completed by the report date.
#gorgeous_Thankssss__Engr
Thanks!!
i need help my table contains optimistic most likely and pessimistic days + my exam is soon please help
See the PERT section (the last section) at engineer4free.com/project-management
thank you (Y)
+mohamed saed Glad to help!
eewllent
In the real life, What are the possible reasons for C had incurred Cost of $500? Instead of 400.
Ummm, could be absolutely anything, because this is a generic activity with no information whatsoever. If Activity C was "building a fence", but a tree fell on the fence during construction and smashed some pieces, and they had to buy more. For example.
Great Tutorial
by the way Activity C BCWP = .33 * 1200 = 396
1/3 x 1200 = 400
the 4 lacking units, are hidden in the aproximation of 0.3333333.......
Agreed, i can see his perspective because he uses the # of days to conclude his EV. To be exact, its 396 because only 33% of the activity has been completed thus earning $396 USD. not 400.
over budget or under budget ?
10:26 this project is over budget and behind schedule
taking BCWS of activivity c is 800.. why not its completion percentage is 66%... Same case for activity D... having confusion just in thses two activities,,,,,,
% completes are physical % complete not duration % complete.
How BCWS for Activity D is 400 when 50% work is completed. Total budget 400. 50% work completed so ACWP is 200.
This was explained well but the pace of speaking was a bit too fast. Also, you have failed to use the terms PV and EV apart from BCWS and BCWP which is important as not everybody uses the latter.
EAC=BAC/CPI so what is BAC ,and how to calculate it ????? BAC BAC``````
Estimate at completion (EAC) = Budget at completion (BAC) / Cost performance index (CPI). These are used for forecasting, not reporting. Very similar thought process though. Just rather than knowing the actual money spent at the end, you are using knowledge from past performance to estimate how much money will actually be spent at the end. If you google EAC=BAC/CPI a few decent resources pop up.