evm: beyond spi & cpi - kcpmichapter.org · evm: beyond spi & cpi . september 22, 2014 ....
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EVM: Beyond SPI & CPI
September 22, 2014 Charlene Thompson, PE PMP EVP PSP
Beyond SPI & CPI
OK, so you routinely calculate and report SPI and CPI for your projects, but what other information does the EVM chart tell us? Let’s take a detailed look at the information provided by our Earned Value calculations and chart, what the chart shows (and what it doesn’t). Are you really measuring the right things? Are there elements of your project schedule or cost/spending plan that skew the data?
Baseline Schedule Early Dates, Late Dates or ? Resource Loading Cost Loading
Earned Value Measurement Requirements
PV Planned Value
EV Earned Value
AC Actual Cost
SPI Schedule Performance Index
= EV/PV CPI Cost Performance Index = EV/AC
Earnings Rules
0% or 100%
25% - 50% - 75% - 100%
Actual progress (WIP)
Earned Value Measurement
Earned Value Chart – “S” Curve
Are we measuring the right things . . . right?
Are we measuring the right things . . . right?
Are we measuring the right things . . . right?
Are we really >$1MM behind?
Are we measuring the right things . . . right?
Progress against the baseline
EVM Chart with Progress
SV = EV – PV; SPI = EV/PV SV = -$512,500; SPI = 0.89
EVM Chart with Progress
Schedule Performance
SV = EV – PV; SPI = EV/PV SV = -$512,500; SPI = 0.89
CV = EV – AC; CPI = EV/AC CV = -$75,000; CPI = 0.98
Cost Performance
Trending
Trending
0.82 0.84 0.86 0.88 0.90 0.92 0.94 0.96 0.98 1.00 1.02 1.04 1.06 1.08 1.10 1.12 1.14 1.16 1.18
1.18
1.16
1.14
1.12
1.10
1.08
1.06
1.04
1.02
1.00
0.98
0.96
0.94
0.92
0.90
0.88
0.86
0.84
0.82Behind Schedule – Over Budget
Behind Schedule – Under Budget
Ahead of Schedule – Over Budget
Ahead of Schedule – Under Budget
Schedule Performance Index
Cos
t Per
form
ance
Inde
x
EAC
1
2
3
4
Today
5
6
Date of Last Rebaseline: mo/yrNumber of Rebaselines:Date of Next Rebaseline: mo/yr
Date of Last Award Fee: mo/yrDate of Next Award Fee: mo/yr
Tota
l Spe
nt
$0M
$110M EAC
$100M TAB
$90M BAC
$50M ACWP
Total Schedule ElapsedMo/Yr
EstimatedEnd
Mo/Yr
Baseline End
Contract Award
Mo/Yr Mo/Yr
CurrentDate
TCPI = 0.76CV = $2.0MSV = $2.9M
Communicate?
0.82 0.84 0.86 0.88 0.90 0.92 0.94 0.96 0.98 1.00 1.02 1.04 1.06 1.08 1.10 1.12 1.14 1.16 1.18
1.18
1.16
1.14
1.12
1.10
1.08
1.06
1.04
1.02
1.00
0.98
0.96
0.94
0.92
0.90
0.88
0.86
0.84
0.82Behind Schedule – Over Budget
Behind Schedule – Under Budget
Ahead of Schedule – Over Budget
Ahead of Schedule – Under Budget
Schedule Performance Index
Cos
t e
oa
ce
de
EAC
1
2
3
4
Today
5
6
Date of Last Rebaseline: mo/yrNumber of Rebaselines:
Date of Last Award Fee: mo/yrDate of Next Award Fee: mo/yr
Tota
l Spe
nt
A
ota Sc edu e apsedo/
d
o/
ase e d
a d
o/ o/
Cu e tate
Forecasting
How much is it really going to cost?
CV = EV – AC; CPI = EV/AC CV = -$75,000; CPI = 0.98
EAC = AC+(BAC-EV)
$6,825,000
How much is it really going to cost?
CV = EV – AC; CPI = EV/AC CV = -$75,000; CPI = 0.98
EAC = BAC/CPI
$6,868,076
How much is it really going to cost?
CV = EV – AC; CPI = EV/AC CV = -$75,000; CPI = 0.98
EAC = AC+(BAC-EV)/(CPI*SPI)
$7,167,576
SV = EV – PV; SPI = EV/PV SV = -$512,500; SPI = 0.89
Can we recover?
TCPI = 1.03 Is that good or bad?
Be careful – if you use the EAC: TCPI = (BAC-EV)/(EAC-AC) TCPI = 1.00 You’ve changed the target!
Earned Value based on Manhours
Earned Value based on Manhours
Earned Value based on Manhours
Earned Value based on Manhours
SPI = 0.98 CPI = 0.96
?
How long is it really going to take?
?
Earned Schedule
Earned Schedule
SPI(t) = 0.88 CPI(t) = 0.91
Earned Schedule
Earned Schedule
Earned Schedule
SPI(t) = 0.82 CPI(t) = 0.88
Other Considerations
• Self-performing vs. Contracting • Type of contract
• Large expenditures
• Accrue?
• Level of Effort • Management Costs • Operation Costs
• Software
• Calculation Options
Questions?
???
