I can't say what the right solution is to chocho's problem or to England's, but it does point up one of the bad features of earned value management: instead of being able to keep a straight face and say that you're still going to finish on budget, you now have a clearer sense of how unlikely that is. Do either England or chocho have May and Cowdrey to save them?
Your explanations are so clear that even a planning dodo such as I can comprehend it.
The next stage is what can you do to improve performance?
My thoughts are to wait for the finishing stages when the high cost elements will swing the curve in the right direction - one plumber can fix ten gold plated taps in 4 hours.
And then again what sort of TCPI will England need in their next innings against South Africa?
Best regards
Mike Testro
Member for
20 years 7 months
Member for20 years7 months
Submitted by Stephen Devaux on Sat, 2012-07-21 16:13
I don't know much about MS Project, but here are my answers to your earned value questions:
-my next question is to do with SPI. my project SPI is 0.8, but i was asked if having a SPI at 0.8 then to SPI at 0.55 good or bad?
SPI is a number that is distorted by float -- if you have tasks that have been delayed but that are still within their float, you might be on schedule even with an SPI of far below 1.0. So the question is, do you have negative float anywhere? If you do, you need to remedy that if you want to finish on schedule.
-my project CPI is 0.95, my question is, how can I keep CPI at a constant to derive a new project cost? is this done in ms project?
Cost estimate-at-completion (EAC) = budget at completion (BAC) divided by CPI. If your budget equals $1M and your CPI = .80, it means that you are getting $.80 of your budgeted work done for every dollar you are spending. This trend, if continued, means that your cost EAC = $1M divided by .80 = $1.250M
-what does TCPI of 1.03 mean?
TCPI stands for to-complete performance index. A TCPI of 1.03 means that you have to work at a CPI of 1.03 the rest of the way in order to finish on budget. (It's the equivalent of "asking rate" in a cricket 50-over match.)
TCPI = (BAC – EV) / (BAC – AC)
For example, if your BAC = $1M, your EV =$.4M and your AC = $.5M, your CPI would be .80.
Your TCPI = ($1M - $.4M) / ($1M - $.5M)
= ($600K / $500K) = 1.20
This means you'd have to work at a CPI of 1.20 the rest of the way in order to finish on budget.
You still need someone to explain how to do this in MSP, but I hope this helps.
Member for
20 years 7 monthsMike,You are too kind, sir!I
Mike,
You are too kind, sir!
I can't say what the right solution is to chocho's problem or to England's, but it does point up one of the bad features of earned value management: instead of being able to keep a straight face and say that you're still going to finish on budget, you now have a clearer sense of how unlikely that is. Do either England or chocho have May and Cowdrey to save them?
Fraternally in project management,
Steve the Bajan
Member for
19 years 10 monthsHi Stephen Your
Hi Stephen
Your explanations are so clear that even a planning dodo such as I can comprehend it.
The next stage is what can you do to improve performance?
My thoughts are to wait for the finishing stages when the high cost elements will swing the curve in the right direction - one plumber can fix ten gold plated taps in 4 hours.
And then again what sort of TCPI will England need in their next innings against South Africa?
Best regards
Mike Testro
Member for
20 years 7 monthsHi, Chocho.I don't know much
Hi, Chocho.
I don't know much about MS Project, but here are my answers to your earned value questions:
-my next question is to do with SPI. my project SPI is 0.8, but i was asked if having a SPI at 0.8 then to SPI at 0.55 good or bad?
SPI is a number that is distorted by float -- if you have tasks that have been delayed but that are still within their float, you might be on schedule even with an SPI of far below 1.0. So the question is, do you have negative float anywhere? If you do, you need to remedy that if you want to finish on schedule.
-my project CPI is 0.95, my question is, how can I keep CPI at a constant to derive a new project cost? is this done in ms project?
Cost estimate-at-completion (EAC) = budget at completion (BAC) divided by CPI. If your budget equals $1M and your CPI = .80, it means that you are getting $.80 of your budgeted work done for every dollar you are spending. This trend, if continued, means that your cost EAC = $1M divided by .80 = $1.250M
-what does TCPI of 1.03 mean?
TCPI stands for to-complete performance index. A TCPI of 1.03 means that you have to work at a CPI of 1.03 the rest of the way in order to finish on budget. (It's the equivalent of "asking rate" in a cricket 50-over match.)
TCPI = (BAC – EV) / (BAC – AC)
For example, if your BAC = $1M, your EV =$.4M and your AC = $.5M, your CPI would be .80.
Your TCPI = ($1M - $.4M) / ($1M - $.5M)
= ($600K / $500K) = 1.20
This means you'd have to work at a CPI of 1.20 the rest of the way in order to finish on budget.
You still need someone to explain how to do this in MSP, but I hope this helps.
Fraternally in project management
Steve the Bajan