ENG5200

Engineering Project Risk Management

Earned Value Analysis for

Controlling Project Variances
• Quiz questions are for you to prepare for the final
assessment. It is your task to develop and document
solutions after each session for your reference prior to the
exam. Quiz questions are also briefly discussed in weekly
sessions.
• Project reports – 30% of total mark for this unit (due on
Friday of week 12).

2
 Application time!

Please apply the learning of the week to your project submission.

To find 20-30 activities, please focus on all processes involved,

including design, supply of materials, delivery to site,
implementation, commissioning,...

Application of learned project management techniques is more

important than accuracy of time/cost estimations. Please make
reasonable assumptions or use online search…

3
 Seek Feedback

• Please seek feedback on your individual project from the teaching

team. Weekly sessions are unique opportunities to ask any
questions related to your learning and project submission.

4
 Learning Objectives

• Analyse project progress against planned values

• Determine the cost and schedule variances
• Interpret project performance indices

5
 1.
RISK
MANAGEMENT
PROCESSES 2.
(ISO31000)

3.

4.

5.

6
7
8
9
10
1st Month

2nd Month

3rd Month

4th Month

5th Month

6th Month
11
 → Site Reports

12
13
1st Month

2nd Month

3rd Month

4th Month

5th Month

6th Month
14
 Short discussion

• Think about measuring schedule variance based on progress reports and the
planned cost of activities. How will you implement this in your project?
Discuss with your classmates please.

15
Another
Example

Analysis at the
end of period #1

Analysis at the
end of period #2

Analysis at the
end of period #3

16
17
 → Invoices, Payment requests,…

18
1st Month

2nd Month

3rd Month

4th Month

5th Month

6th Month
19
20
1st Month

2nd Month

3rd Month

4th Month

5th Month

6th Month
21
 Analysis at the
end of period #1

Analysis at the
end of period #2

Analysis at the
end of period #3

22
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26
 Project Earned Value Analysis - Assignment Report

• Consider a date for Earned Value Analysis (e.g. end of 6th weeks/months…)
• Assume Progress percentages (field reports) and Actual costs (invoices)
• Table and graph for PV, EV, AC
• Calculate deviations from planned objectives (SV, CV, SPI, CPI)
• Interpretation of results (schedule delays, cost overruns,…)

27
Quiz question 1

Using the following information, what will be the CV and SV at the end of week 4?

Response: CV = 295,
End of week 4
SV = 295
0

28
Quiz question 2

Using the following information, what will be the CV and SV at the end of week 8?

Response: CV = 397,
End of week 8
SV = 397

29
Quiz question 3
Using the following information, what will be the SPI and CPI at the end of week 8?

Response: SPI = 0.97,

End of week 8
CPI = 1.17

30
 1.
RISK
MANAGEMENT
PROCESSES 2.
(ISO31000)

3.

4.

5.

31
Thank you