Earned Value Management – Earned Value types (EVT’s)

Picture1Introduction

Earned Value Management utilizes a number of Earned Value Types, in essence these define the way in which performance will be claimed against the baseline.

 50/50 and XX/YY

50/50 and XX/YY operate in the same way, with 50/50 type activities the first 50% can be claimed as soon as the activity has started. The remaining 50% can be claimed upon final completion of the activity. Typically activities employing this type of EVT spans over two periods.

 0-100

0-100 EVT s typically used for activities that are likely to be completed within one period and there is no claim of completion until the activity has finished at which point 100% will be claimed.

 Incremental Milestones

Incremental milestones can be weighted against an activity to define more precisely how the activity achievement will be claimed. For example if the first milestone represents 25% in progress terms of the activity this will only be achieved once that milestone has been completed.

 Units Complete

As the name suggests this EVT calculates the % complete based upon the units complete. For example if we plan to make 10 widgets and we have made 7 then we are 70% complete.

 Percent Complete

This is usually derived through experience and judgement of the programme current status, however it’s advisable that the % complete is supported by lower level metrics or evidence to support the claim.

 Apportioned Effort

When activities are performed in support of other direct activities eg inspection and acceptance.  The effort is estimated and planned as a % of the production effort.  There must be a method of determining this %.

EG –  App Effort estimated as 10% of related production

Level of Effort (LoE)

Level of Effort claims performance in accordance with the baseline profile meaning that Earned Value will be equal to Planned Value. This means that the Schedule Performance index (SPI) will always be 1 and Schedule Variance will always equal 0. There are some exceptions to this which can be seen in the Effects of LoE article.

It is important to note that Level of Effort can have a Cost Variance, the example above indicates that there is no Cost Variance yet ACWP (AC) can be above or below the BCWP (EV) and BCWS (PV) values.

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One thought on “Earned Value Management – Earned Value types (EVT’s)

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  1. Rick, nowhere in the article do I state that ACWP is the same as BCWS and BCWP. However I agree that I could have used a better diagram where the ACWP is different to the BCWS and BCWP to highlight the fact that LOE can have a cost variance. I’ll amend the diagram and article to make this absolutely clear. Kind Regards, Mick.

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