Join Aileen Ellis for an in-depth discussion in this video System upgrade project EVM summary, part of Project Management: Calculating Earned Value.
That was a lot of calculations for one project.…I hope you found this example useful.…When I look at an Earned Value chart,…I always begin by looking at the Earned Value.…If we compare the Earned Value, the red line,…to the Planned Value, the blue line,…we see that the Earned Value line is lower.…This means we have completed less work than planned.…We are behind schedule.…The difference between the two lines shows…the schedule variance.…
Next, I look at the Earned Value line again,…but this time I compare it to the Actual Cost line,…the green line.…We see that the Earned Value line is lower…than the Actual Cost line.…This tells me that I have less work complete…than I should for the money spent.…We are running over budget.…The difference between the two lines is…the Cost Variance.…The next thing I look at, I look at the BAC…meaning the Budget at Completion…and the EAC, the Estimate at Completion.…
I see that my BAC is lower than my EAC.…This tells me I expect to overrun.…The difference between these two numbers is my VAC,…
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- Identify the fundamentals of calculating budget at completion, planned value, earned value, and actual cost.
- Recognize the steps to forecast estimate at completion.
- Determine the steps in calculating BAC, PV, EV, and AC.
- Break down how to calculate CV and CPI.
- Examine the elements of forecasting EAC.
- Explore the steps involved in forecasting ETC and VAC.