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Earned Value Method RRS feed

  • Question

  • Hi!

    I will like to share the method I am planning to use in a Construction Project. Please feel free to make comments or suggestions. 

    I will like to start with the following diagram:

    • As you can see on this diagram, there are 7 subtasks.
    • The Baseline is the estimated cost (Budget). The Total Cost will be updated every week as well as Physical % Complete. Total Cost for me is the Spending of money.  When the subtask is fished, Physical % Complete is equal to 100% and the Total Cost is the Final Cost.
    • I am not planning to use % Completion.
    • I set a Start Date and End Date for subtasks, and a Status Date for the project.
    • The default Earn Value Method is Physical % Complete.

    What do you think about this approach? Will I be able to implement EVA using this information? Please let me know what you think. Thanks again! Ignacio



    • Edited by isa7667 Monday, August 31, 2015 9:32 PM
    Monday, August 31, 2015 9:20 PM

Answers

  • Total cost is the calculated total cost

    First under File, Options, Schedule clear the Actual costs are calculated by Project option.
    Then you need to update progress, preferably using Actual Start, Actual Duration and Remaining duration. This will update % complete automatically.
    Then enter actual costs so far in the Actual Cost column.

    You do need actual start and actual finish otherwise the is no progress and your schedule becomes meaningless.


    Rod Gill
    Author of the one and only Project VBA Book
    www.project-systems.co.nz

    • Marked as answer by isa7667 Monday, September 7, 2015 12:46 PM
    Wednesday, September 2, 2015 9:49 PM
    Moderator

All replies

  • Pretty sure some earned value metrics rely on Actual Cost so you need to set the % Complete values. Harder to update schedule if you don't set actual dates.

    Under options you can set Actual Cost to bot be updated automatically so % Complete doesn't affect it. You can then enter your own actuals in the Actual Cost field.


    Rod Gill
    Author of the one and only Project VBA Book
    www.project-systems.co.nz

    Tuesday, September 1, 2015 5:56 AM
    Moderator
  • Hi Rod! Thanks for your help. From reading your reply I understand that real time cost should be recorded using the Actual Cost field. So instead of using Total Cost I will be using Actual Cost, where Total Cost is equal to Actual Cost + Remaining Cost. So I also need to keep track of Remaining Cost? Will you suggest to let Project automatically calculate remaining costs or is it possible to enter manually? What about Actual Cost? Do I let project calculate, or do I use real values from accounting? 

    A few other questions below:

    1) What is the purpose of Total Cost and how do I use this measure? 

    2) Could I ignore the % Complete Column? What is the advantage of this measure?

    3) Do I need to include Actual Start and Actual Finish?

    To be honest I am a bit confused with so many fields. What will be your recommendation for a new comer. My job is to keep track of a construction project, making sure everything is done according to schedule. We do not measure working hours but instead measure Physical % Complete. I want to keep it simple but have some flexibility to perform Earn Value Analysis or Similar Report. However, my job is more focus on schedule and not cost.

    Thanks in advance for your support! Any articles or suggestions will be welcome!!!






    • Edited by isa7667 Tuesday, September 1, 2015 1:23 PM
    Tuesday, September 1, 2015 12:31 PM
  • Total cost is the calculated total cost

    First under File, Options, Schedule clear the Actual costs are calculated by Project option.
    Then you need to update progress, preferably using Actual Start, Actual Duration and Remaining duration. This will update % complete automatically.
    Then enter actual costs so far in the Actual Cost column.

    You do need actual start and actual finish otherwise the is no progress and your schedule becomes meaningless.


    Rod Gill
    Author of the one and only Project VBA Book
    www.project-systems.co.nz

    • Marked as answer by isa7667 Monday, September 7, 2015 12:46 PM
    Wednesday, September 2, 2015 9:49 PM
    Moderator