You need to get the Estimate/contract price make up for the project and work out the value of all the activities in your programme. You then can put the value onto each activity. this is easier said than done with many projects as the conntract price breakdown rarely transtates simply into the programme activities. It also requires a sufficiently detailed programme so the value spread on the activity is meaningful.
Once done and early/late date baselines set up, as you progress activities the corresponding Value becomes earned. you can then produce graphs etc of the earned value to as the project progresses, graphs for various selections of activities can also be produced.
This is useful to then compare the earned value against actual costs on the project and monitor your cost to earned value ratio. eg high earned value and low actual cost is good. You can then also make forecasts and projections on the likely end cost.
hope this helps.
JK
Member for
23 years
Member for23 years
Submitted by Steven Oliver on Mon, 2005-01-24 04:35
Earned Value = Budget Cost of Work Performed (BCWP) and has a very well defined value equivalent to Percent Complete * Budget. At any point in time you should know the budget for an activity, so the hard part is defining % complete.
See Paul Harriss website for some very good info and application of Ev.
Member for
20 years 9 monthsRE: EARNED VALUE
Louise
You need to get the Estimate/contract price make up for the project and work out the value of all the activities in your programme. You then can put the value onto each activity. this is easier said than done with many projects as the conntract price breakdown rarely transtates simply into the programme activities. It also requires a sufficiently detailed programme so the value spread on the activity is meaningful.
Once done and early/late date baselines set up, as you progress activities the corresponding Value becomes earned. you can then produce graphs etc of the earned value to as the project progresses, graphs for various selections of activities can also be produced.
This is useful to then compare the earned value against actual costs on the project and monitor your cost to earned value ratio. eg high earned value and low actual cost is good. You can then also make forecasts and projections on the likely end cost.
hope this helps.
JK
Member for
23 yearsRE: EARNED VALUE
Earned Value = Budget Cost of Work Performed (BCWP) and has a very well defined value equivalent to Percent Complete * Budget. At any point in time you should know the budget for an activity, so the hard part is defining % complete.
See Paul Harriss website for some very good info and application of Ev.
HTH