Earned Value, powerpoint presentation help

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timer Asked: Nov 24th, 2016
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The most common method for determining project progress and, ultimately, project success is called Earned Value. The attached PowerPoint presentation explains this quite well using an example to help you understand it. Please review them

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Calculating Earned Value Yes, you too can simultaneously monitor and control both schedule and cost using the formulas we have included in this document. First, you have to understand the terms and get familiar with their acronyms. Definition of Terms Earned value (EV) Budgeted cost of work scheduled (BCWS) Actual cost of work performed (ACWP) Budgeted cost of work performed (BCWP) Cost variance (CV) Cost variance percentage (CV%) Schedule variance (SV) Schedule variance percentage (SV%) Estimate at completion (EAC) How It Works/What It Determines/How You Use It Budgeted cost of work performed Use BCWS to represent the value of work to be budgeted. Use ACWP to represent the total cost spent to complete the task. This is also known as earned value. This is the difference between the planned and actual costs for the completed tasks. It can either be a positive or negative value. Always express this as a percentage. A positive value indicates that the project is under budget. A negative value means that the project is over budget. This is the difference between the planned and actual costs for the completed tasks. It can either be a positive or negative value. Always express this as a percentage. A positive value indicates that the project is on schedule. A negative value means that the project is off schedule. Use this to recalculate a project budget to obtain a more accurate value of what the project will cost at the end. Formulas for Calculating Earned Value Determining Schedule Variances (+)Variance = Ahead of Schedule (-)Variance = Behind Schedule SV = BCWP less BCWS SV% = SV divided by BCWP SPI = BCWP divided by BCWS % Complete = 100 x SPI Determining Cost Variances (+)Variance = Below Budget (-)Variance = Over Budget CV = BCWP less ACWP CV% = CV divided by BCWP CPI = BCWP divided by ACWP EAC = BAC times (ACWP divided by BCWP) Earned Value Exercise Complete the following problems: 1. The following project is at the end of its first week. Find the cost and schedule variances, the cost performance index, the schedule performance index and the estimate at completion. Task Predecessors A B C D E None None A A B ,C Duration in days 2 3 2 5 6 Planned Value ($) 500 1000 200 600 1200 Actual Cost ($) 650 1500 300 600 550 Percent Complete 100 100 50 20 10 To do this exercise, it is best to start with a Gantt chart depicting the task relationships. CV ______________________ CPI ________________ SV ______________________ SPI ________________ EAC _____________________ 2. Using the following information, calculate the cost performance index and the schedule performance index. Then calculate the estimate at c Planned value: 6700 Earned value: 6100 Actual costs: 7300 Budget at completion: 38900 CPI _______________________ EAC ______________________ SPI _____________________________ 3. The following project is at the end of its third week. Find the cost and schedule variances, the cost performance index, the schedule performance index and the estimate at completion. Task Predecessors A B C D E F G H None A A A B ,C C F G Duration in days 3 5 2 5 6 10 7 8 Planned Value ($) 600 1000 200 1000 1200 10000 700 1600 Actual Cost ($) 650 1500 300 600 1200 12000 0 0 Percent Complete 100 100 100 100 100 75 0 0 To do this exercise, it is best to start with a Gantt chart depicting the task relationships. CV ______________________ CPI ________________ SV ______________________ SPI ________________ EAC _____________________ 4. Mary is the project manager for a web design project for Newberry Pet Foods. So far in the six weeks (of the twelve week project), Mary’s team has completed five tasks which had a combined planned value of $7800. However, the team spent $8200 to complete those tasks. She has five additional tasks to complete the project. What are the PV, EV, AC, CV, SV, CPI, and SPI for Mary’s project? 5. Consider the following information: PV=6500 EV=5000 AC=7200 BAC=32000 Expected Duration=12 weeks Calculate the following: CV __________________ SV __________________ CPI __________________ SPI __________________ EAC __________________ Duration at Completion _______________ Earned Value Analysis Tracking Project Progress What Is Earned Value? • The dollar amount you planned to spend for the work actually completed • Earned Value is the budgeted cost of the work that has actually been performed/completed • Earned Value = Budgeted Cost of the Work Performed (BCWP) What Is Earned Value Analysis (EVA)? EVA enables the project progress to be tracked in terms of: • The work that has actually been completed --- Compared To --- • The work that was scheduled to be completed Why Is Earned Value Analysis Important? • EVA enables the project team to know: • If the project is ahead of, or behind schedule • How far the project is ahead of, or behind schedule • If the project is over or under budget • How much the project is over or under budget Why Is Earned Value Analysis Important? • EVA enables the team to address the project’s triple constraints earlier rather than later • Scope – re-prioritize/reduce requirements --- and/or --• Schedule – adjust the timeline --- and/or --- • Cost – request additional funding The Components of Earned Value Analysis • WBS – Work Breakdown Structure • Identifies products to be delivered by the project – Products or sub-products should be broken down to what can be completed in 80 hours (“80-hour rule”), when applicable • Provides the basis for – Distinct products or sub-products – which help to provide – Valid estimates – which enable – Tracking earned value / project progress The Components of Earned Value Analysis – Earned Value (EV) ---- or BCWP • The budgeted cost of the work actually performed • How much work was actually completed – Planned Value (PV) ---- or BCWS • The budgeted cost of the work scheduled to be performed • How much work should have been completed – Actual Cost (AC) ------- or ACWP • The actual cost of the work performed • How much money has been actually spent The Components of Earned Value Analysis – Budget at Completion (BAC) • Dollar amount originally budgeted to complete the project – Estimate at Completion (EAC) • Estimate of dollar amount needed to complete the project – Variance at Completion (VAC) • Estimate of the dollar amount projected above or below budget – Schedule at Completion (SAC) • Projection of the time needed to complete the project The Components of Earned Value Analysis – Schedule Variance (SV) • The work completed vs. the work planned to be completed • SV = (Earned Value – Planned Value) • Tells us if the project is ahead of, or behind schedule • Negative value means the project is behind schedule The Components of Earned Value – Schedule Performance Index (SPI) • Utilized to forecast how long it will take to complete the project • SPI = (Earned Value / Planned Value) • Tells us if the project is ahead of, or behind schedule • Less than 1.00 means the project is behind schedule The Components of Earned Value – Cost Variance (CV) • What we planned to spend on the work completed vs. what was actually spent on the work completed • CV = (Earned Value – Actual Cost) • Tells us if the project is over or under budget • Negative value means the project is over budget The Components of Earned Value – Cost Performance Index (CPI) • Utilized to forecast how much it will cost to complete the project • CPI = (Earned Value / Actual Cost) • Tells us if the project is above or below budget • Less than 1.00 means the project is over budget The Components of Earned Value – Estimate at Completion (EAC) • EAC = (Budget at Completion / Cost Performance Index) • Forecast of the total project cost – Variance at Completion (VAC) • VAC = (Budget at Completion – Estimate at Completion) • Forecast of how much the project will be over or under budget – Schedule at Completion (SAC) • SAC = (Scheduled Project Length / Schedule Performance Index) • Forecast of total project length (days, weeks, months, etc.) A Sample Project Scenario • Assumption: for the sake of simplicity, all screens will require the same time and effort, and all reports will require the same time and effort – WBS = 20 screens and 10 reports – Scheduled Project Length = 12 weeks – Cost is estimated at $3,000 per screen = $60,000 – Cost is estimated at $2,000 per report = $20,000 – Cost estimate to complete the project = $80,000 A Sample Project Scenario – At week 6 (half-way through the project) we know: • Planned Work and Planned Expenses: – 10 of the 20 screens were scheduled to have been completed – 5 of the 10 reports were scheduled to have been completed – $40,000 (50% of the money) was scheduled to have been spent • Actual Work Completed and Actual Expenses: – – – – 4 of the 20 screens have been completed 2 of the 10 reports have been completed 20% of the work has been completed $25,000 has been spent (actual cost) A Sample Project Scenario • Half-way through the project we know: – BAC = $80,000 (the budget to complete 20 screens and 10 reports) – PV = $40,000 (we planned to complete 50% of the work) • Planned to complete $40,000 worth of product • Planned to complete 10 screens and 5 reports – EV = $16,000 (we completed 20% of the work) • Completed $16,000 worth of product • Completed 4 screens and 2 reports – AC = $25,000 (we spent approximately 30% of the budget) • Actual cost to complete 4 screens and 2 reports was $25,000 A Sample Project Scenario • Calculations – Cost Variance • CV = (EV – AC) • CV = ($16,000 – $25,000) = -$9,000 • More money ($9,000) has been spent, than was planned • The project is currently $9,000 over budget – Cost Performance Index • • • • CPI = (EV / AC) CPI = $16,000 / $25,000 = .64 1/.64 = 1.56 The project will cost over one-and-a-half times the original estimate A Sample Project Scenario • Calculations – Schedule Variance • SV = (EV – PV) • SV = ($16,000 – $40,000) = -$24,000 • The project is behind schedule – Schedule Performance Index • SPI = (EV / PV) • SPI = $16,000 / $40,000 = .4 • Only 40% of the project will be completed at the end of 12 weeks • 1/.4 = 2.5 • The project is projected to take 2.5 times longer than planned Forecasts – Estimate at Completion • EAC = (BAC / CPI) • EAC = ($80,000 / .64) = $125,000 to complete the project – Variance at Completion • VAC = (BAC - EAC) • VAC = ($80,000 – 125,000) = $45,000 over budget at completion – Schedule at Completion • SAC = (Scheduled Project Length / SPI) • SAC = (12 weeks / .4) = 30 weeks to complete the project Forecasts 140 EAC = $125,000 SAC = 30 weeks 120 Cost (thousands of dollars) 100 Budget at Completion 80 60 40 Planned Value = $40,000 Actual Cost = $25,000 20 Earned Value = $16,000 6 Cost Variance ($9,000) 12 18 Timeline (weeks) Schedule Variance ($24,000) 24 30 Summary – The project is currently $9,000 over budget – At this rate, the project is forecast to be $45,000 over budget upon completion – The project is behind schedule – At this rate, only 40% of the work will be completed at the end of 12 weeks – The project is forecasted to take 30 weeks, as opposed to the original 12 weeks to complete development Summary – Adjustments can be made to address these issues • Requirements can be re-prioritized – Utilize the 80/20 principle – Some “requirements” may not be needed during this phase – The business solution can be delivered on-time and within budget • Additional resources utilized – All requirements are satisfied – The project is completed on-time – However, the project goes over budget Summary – Earned Value Analysis enables you to determine: • If your project is on, ahead of, or behind schedule • If your project is under or over budget • How much additional time will be needed to complete the project • How much additional money will be needed to complete the project – Earned Value Analysis enables you to: • Report accurate project status • Make the necessary adjustments earlier, rather than later, to address project issues PROJECT SCOPE STATEMENT Note: Any work not explicitly included in the Project Scope Statement is implicitly excluded from the project. Electronic Documentation Process Implementation for ABC Medical Center’s Acute Stroke Unit Project Name: Prepared by: Date (MM/DD/YYYY): 11/04/16 Version History Version Date Comments (MM/DD/YYYY) 1.0 11/04/16 1. Executive Summary This project is about the ABC Medical Center's Acute Stroke Department which wants to setup a secure internal application, which can be accessed by third party systems and other internal systems as well, this system should be able to capture all data related to the patient's visit electronically. The system would be able to solve some of the issues that ABC Medical Center would like to find solutions for, current registration system is old, one-directional and obsolete, the need for a system that can create, update, edit and delete patient account, from everything to the ability of the system to do the signature. The projet will help in improving the efficiency by better documentation process and store patient data and use it for a more detailed analysis by medical professionals. 2. Business Objectives 2.1 Product Description (Solution): ABC Hospital Acute Stroke Unit wants to setup secure internal application, which can be accessed by third party systems and other internal systems as well. 2.2 Business Objectives: Up-to-date, correct, and readily available patientrelated information is the key to the smooth operation of a hospital. 3. Project Description For each area below, provide sufficient detail to define this project adequately: 3.1 Project Scope • Includes (list Deliverables): • Project Timeline/Work Breakdown Structure • Operational Assessment, Needs Assessment, Process Flow Diagrams and System Design • • Does Not Include: Technology Management Assessment 3.2 Project Completion Criteria: • The application should collect patient information (Name, address, contact information, and insurance) • The application should be able to store all provider information and their specialties • The application should be able to collect patient visit information (date, time, duration, of visit, history) 3.3 External Dependencies: 3.4 Assumptions: The following is a list of assumptions used as the basis for the design of this project: • Three or four vendors will be considered based on their organization’s proven ability to deliver and support (EHR) system systems in New York. • There are several separate but related projects that need to be coordinated with this project in the near future. The reengineering, redesign, and standardization of clinic, billing, and inventory workflow procedures will be finalized as the contract is being negotiated with the vendor of choice. An upgrade of the technology infrastructure will need to be completed by the implementation phase of the project. • Time is of the essence as the ability of the current system (manual documentation) no longer complies with the mandated electronic process and will be considered obsolete and could potentially cause a great amount in penalties from the State’s governing bodies. 3.5 Constraints: • __The availability of resources to build the (EHR) system that has both clinical and technical knowledge and background. • Time constraints to the project if selected non-technical staffs are sent for training but have clinical background. ___________________________________________________ ___________________________________________________ ____________________________ ...
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Prof_Baron
School: Carnegie Mellon University

Hi there, kindly go...

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Anonymous
awesome work thanks

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