Earned Value

 Earned Value represent the amount of budget

absorbed that you can claim representing the
complete work (cost, time, scope)
 Earned Value Analysis / technique is a method of
measuring project performance, by comparing
the amount of work planned with what was
actually accomplished to determine if cost and
schedule performance is as planned
 Enable the project manager to detect deviations
from plan as soon as they occur and to take
appropriate corrective action.
EV. The key values
 Planned Value (PV): Estimated value of the
work to be done
 Budget at Completion (BAC): Budget for total
work
 Earned value (EV): Estimated value of the
work actually accomplished
 Actual Cost (AC): Actual cost incurred
EV. The measurenment
 Cost Variance CV = EV - AC
 (+) = under budget
 (-) = over budget
 Schedule Variance SV = EV - PV
 (+) = ahead schedule
 (-) = behind schedule
 Cost Performance Index CPI = EV/AC
 >1 performance of cost OK
 <1 performance of cost not OK
 Getting Rp.xx out of every Rp.1
 Schedule Performance Index SPI = EV/PV
 >1 performance of schedule OK
 <1 performance of schedule not OK
 Progressing at x% of the rate originally plan
 EV. CPI and SPI

1,300
Cost Performance Index Performance
1,200 Above Plan
EV
CPI =
AC 1,100
BCWP 1,000
CPI =
ACWP
0,900

0,800
Schedule Performance Index
EV 0,700
Performance
SPI =
PV 0,600 Below Plan
BCWP
SPI = 0,500
BCWS 1 2 3 4 5 6 7 8
CPI 1,000 0,875 0,857 0,915 0,892 0,881 0,867 0,882
SPI 1,000 0,875 0,889 0,843 0,846 0,817 0,816 0,825
EV. CPI and SPI

2.5 2.5

2 2

1.5 1.5

1 1

0.5
0.5
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8

2.5 1.5

1.5 1

0.5 0.5
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8

: Schedule Performance Index (SPI) : Cost Performance Index (CPI)

EV. Example #1

Selamat!
Saya memberi hmm... Sepanjang
5km, dalam 5 bulan,
Anda kontrak
maka akan selesai
“Pembangunan dengan total biaya
Jalan Rel“ baru $5,000
Planned Value (PV)
Total Budget = $ 5,000
Harus selesai dalam 5 bulan
Saya rencanakan setiap 1 track
selesai 1 bulan
Bulan 1 Bulan 2 Bulan 3 Dengan estimated cost of
PV = $1,000 PV = $1,000 PV = $1,000 $1,000./track/bulan
PV setiap bulan = $1,000

Total BAC= $5,000

Total PV = $5,000

Bulan 4 Bulan 5
PV = $1,000 PV = $1,000

Month 1 2 3 4 5

Cost ($) 1,000 1,000 1,000 1,000 1,000 PV

% complete 20% 40% 60% 80% 100%

Earned Value (EV)
CONTROL POINT : Akhir bulan ke-2

Sekarang kita berada pada akhir

bulan kedua,
tapi hanya 1 section track yang
selesai.
Maka, nilai dari Earned Value
(EV) adalah = $1,000
Bulan 1 Bulan 2
PV = $1,000 PV = $1,000

Akhir bulan ke-2

PV = $2,000  Rencana
EV = $1,000  Yang didapatkan
Actual Cost (AC)
CONTROL POINT : Akhir bulan ke-2

Tenaga kerja $1,300,

Biaya material $1,100.
Jadi biaya pada track 1 & 2 = $2,400

Akhir bulan ke-2

AC = $2,400  Pengeluaran Aktual
Illustration Summary

Month 1 2 3 4 5

Cost ($) 1,000 1,000 1,000 1,000 1,000 PV

% complete 20% 40% 60% 80% 100%

CONTROL POINT

at Control Point :
PV = $2,000 Planning Progress = 40%
Progress
Status
EV = $1,000 Actual Progress = 20%
Cost
AC = $2,400 Actual Cost Spent = $2,400 Status
The Measurenment

 Cost Variance CV = EV - AC
 CV = $1,000 - $2,400 = - $1,400
 (-) = over budget
 Schedule Variance SV = EV - PV
 SV = $1,000 - $2,000 = - $1,000
 (-) = behind schedule
 Cost Performance Index CPI = EV/AC
 CPI = $1,000/$1,400 = 0.71
 <1 performance of cost not OK
 Getting Rp.xx out of every Rp.1
 Schedule Performance Index SPI = EV/PV
 SPI = $1,000/$2,000 = 0.5
 <1 performance of schedule not OK
 Progressing at 50% of the rate originally plan
#2 Forecasting
Forecasting
 Forecasting includes making estimates or
predictions of conditions in the projects’s
future, based on information and knowledge
available at the time of the forecast

 Forecasting:
 Estimate at Completion (EAC)
 Estimate to Complete (ETC)

 Parameter used to forecast : BAC, AC, & CPI

F. Estimate to Complete
 ETC is the estimate for completing the
remaining work for a schedule activity.

 New estimates:
 ETC = ETCbottom-up
 Work performed at the budgeted rate:
 ETC = BAC - EV
 Considering both SPI and CPI factors:
 ETC = [ BAC - EV ] / [ CPIcumulative x SPIcumulative ]
 Ratio CPI/SPI = 80/20, 50/50, others
F. Estimate at Completion
 EAC is a forecast of the most likely total value
based on project performance

 New estimates:
 EAC = AC + ETCbottom-up
 Work performed at the budgeted rate:
 EAC = AC + ( BAC - EV)
 Considering both SPI and CPI factors:
 EAC = AC + ( [ BAC - EV ] / [ CPIcumulative x SPIcumulative ] )
 Ratio CPI/SPI = 80/20, 50/50, others
 Work performed at the present CPI:
 EAC = BAC / CPIcumulative
#3 To-Complete Performance Index
To-Complete Performance Index
 TCPI is the calculated projection of cost
performance that must be achieved on the
remaining work to meet a specified
management goal, such as the BAC or the
EAC.
 TCPI as the work remaining (BAC minus EV)
devided by the funds remaining (BAC minus
AC, or EAC minus AC)
 Formula TCPI = [ BAC - EV ] / [ BAC - AC ]
 Or TCPI = [ BAC - EV ] / [ EAC - AC ]