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Earned Value - Each months earned value isn't working out but the cumulative is RRS feed

  • Question

  • Hello

    We are using MS Project 2007 Professional

    We are performing Earned value on every task with hours associated to it and we are using hours as the method for doing earned value along with a 0-100 method for 1 - 10 day duration tasks and .25 - 1 for tasks that are longer than 2 weeks.

    We also do earned value cummulative which is working fine and we also are required to do earned value on each month by itself such as an example.....September by iteself and than October and so..on.

    Monthly - Our BCWS for the month is just whatever we had baselined for that month (ex. September)and our actuals is whatever we had gathered from timesheets for that month (ex. September). BCWP (Earned value) is the difference between last months earned value (ex. August) and this months earned value (ex. September).

    Cumulative - Our BCWS is what we had baselined from the start (Baseline work) through the reporting period we are in. Our ACWP is what we collected in timesheets and posted to actual work from the start through the reporting period we are in. BCWP is just what we earned through that cumulative period so if we haven't completed a task it is either going to be 0, 25% of the baseline or 100% of the baseline. So....If the task was complete we would take 100% of the baseline even if we finished 1 month early or not for a task.

    Although we calculate earned value on every task we roll up the earned value to a higher level. For simplicity sake let's say it is at the summary level of the schedule.

    Issue -

            The issue is if we complete a task 1 month ahead of time we multiply 1 * the total baseline hours and take the entire baseline as the BCWP. So...if we completed the task in September and the baseline hours ran through October we would look real good in September since we added Octobers baseline. However, we look not so good in October because we get 0 hours credit for BCWP in October and we get all of the hours of the baseline that occurred in October.

    The SPI in September is 1.3 and the CPI is 1.2.....In October the SPI is .68 and CPI is .78...If I add the BCWP and BCWS and ACWP together the values are SPI .99 and CPI 1.01

    Is this the normal way this should work? If so how do others report this?

    If it isn't normal what needs to happen here?

    Any other comments?

    Thanks

    Sunday, November 18, 2012 4:34 PM

Answers

  • Firstly do you have SP3 applied? If not, do so immediately. Project 2007 is not to be trusted without it.

    Secondly, (in Project 2010) I:

    1. Created a new project
    2. Added 3 tasks and a resource with a rate.
    3. Set each task to Dur 5d linked one after each other, cost $1000 per week.
    4. Set Baseline
    5. Set Task1 to 100%
    6. Deleted link to 2nd task so it started same date as task 1 and set to 100% complete
    7. Set task 3 start to start of week 3 again.
    8. Set status date to end of week 2

    SPI for week 1 is 2, week 2 is 1 (no earned value for week 2). Even though the baseline cost for task 2 was in week 2, the earned value was in week 1 and none in week 2. So, Project appears to have calculated the earned value correctly. If Project 2007 is not doing the same, apply SP3 and any cumulative update you can find for Project 2007.

    If you are calculating the earned value manually then you need to ignore the baseline cost in a month for any task that is already 100% complete in the previous month.


    Rod Gill

    The one and only Project VBA Book

    Rod Gill Project Management

    • Marked as answer by Hotmail1 Monday, November 26, 2012 2:23 PM
    Sunday, November 18, 2012 9:15 PM
    Moderator