EAC Estimate at Completion - PMP Exam Earned Value Management Course
I have discussed in my previous blog post in detail and also provided a short brief of its three elements: Planned Value PVActual Cost ACand Earned Value EV.
We are going to look at these elements in detail.
Therefore, I request you go through every step thoroughly.
Therefore, understand the concepts well before proceeding further.
The calculations for finding Planned Value, Earned Value, and Actual Cost are simple, and once you understand them, the rest will be simple.
Planned Value PV This is the first element of.
Planned Value is the approved value of the work to be completed in a given time.
It is the value that you should have been earned as per the schedule.
Total Planned Value for the project is known as Budget at Completion BAC.
Planned Value is also referred to as Budgeted Cost of Work Scheduled BCWS.
Formula for Planned Value PV The formula to calculate Planned Value is simple.
Take the planned percentage of the completed work and multiply it by the project budget and you will get Planned Value.
The budget of the project is 100,000 USD.
Six months have passed and the schedule says that 50% of the work should be ev formula pmp />Given in this question.
Project duration: 12 months Project cost BAC : 100,000 USD Time elapsed: 6 months Percent complete: 50% as per the schedule Planned Value is the value of the work that should have been completed so far as per the schedule.
In this case, we should have completed 50% of the total work.
Application of Planned Value PV Planned Value is used to calculate Schedule Variance and Schedule Performance Index.
Actual Cost AC This is the second element of earned value management.
Actual Cost is the total cost incurred for the actual work completed to date.
Simply put, it is the amount of money you have spent to date.
Formula for Actual Cost AC Finding Actual Cost is the simplest of all.
There is no special formula to calculate Actual Cost.
It is an amount that has been spent and you can find it easily in the question.
Example of Actual Cost AC You have a project to be completed in 12 months.
The budget of the project is 100,000 USD.
Six months have passed and 60,000 USD has been spent, but on closer review, you find that read article 40% of the work has been completed so far.
Actual Cost is the amount of money that you have spent so far.
In the question, you have spent 60,000 USD on the project so far.
Application of Actual Cost AC Actual Cost is used to calculate Cost Variance and Cost Performance Index.
Earned Value EV This is the third and last element of earned value management.
Earned Value is the value of the work actually completed to date.
If the project is terminated today, Earned Value will show you the value that the project has produced.
Earned Value is also known as Budgeted Cost of Work Performed BCWP.
There is a difference between Planned Value and Earned Value.
Planned Value shows you how much value you have planned to earn in a given time, while Earned Value shows you how much value you have actually earned on the project.
Formula for Earned Value EV The formula to calculate Earned Value is also simple.
Take the actual percentage of the completed work and multiply it by the project budget and you will get the Earned Value.
Example of Earned Value EV You have a project to be completed learn more here 12 months.
The budget of the project is 100,000 USD.
Six months have passed and 60,000 USD has been spent.
On closer review, you find that only 40% of the work has been completed so far.
In the above question, you can clearly see that only 40% of the work is actually completed, and the definition of Earned Value states that it is the value of the project that has been earned.
Application of Earned Value EV Earned Value is used to calculate,and.
In your Ev formula pmp exam, you will be ev formula pmp a scenario and asked to identify these three elements.
Please note that these elements are also known by different names, such as: Planned Value referred to as Budgeted Cost of Work Scheduled BCWSActual Cost as Actual Cost of Work Performed ACWPand Earned Value as Budgeted Cost of Work Performed BCWP.
It is unlikely that you will see these terms in your PMP exam, so concentrate on the terms mentioned in the PMBOK Guide rather than these outdated names.
Summary Earned Value, Planned Value, ev formula pmp Actual Cost are basic elements of earned value management.
They can be used to generate a basic overview of your project status.
Earned Value is the value of the work actually completed to date, Planned Value is the value that you should have earned as per the schedule, and Actual Cost is the amount spent on the project to date.
Once you have this information on hand, you can find the current status and compare it with the planned progress.
You can now move on to the next blog post on which explains if you are ahead of schedule or behind schedule and whether you are under budget or over budget.
If you are interested in learning all the mathematical formulas for the PMP exam, you can try my.
You can also try my and to practice PMP exam sample questions.
You are working as an intern and have 10 Servers to upgrade.
It is estimated that it will take you 5 hours per Server and you are scheduled to work 5 hours a day.
After 6 work days you have spent 15 hours and completed 5 Servers.
Could you please tell me what would be the cumulative EV until 7 weeks.
Thanks a bunch System planning 3,520 week1 4,800 week2 8,000 week3 5,000 w4 User interface planning 1,000 w4 3,040 w5 2,000 w6 1,000 w7 3,000 w8 1,340 w9 System planning 10% w1 30% w2 70% w3 90% w4 100% w5 100% w6 100% w7 User interface planning 10% w4 30% w5 65% w6 80% w7 Hi, Can you please let me know why project schedule is input for determine budget process.
It is planning process so why we are not using schedule baseline as input.
Thanks Deepak Banga Need your help in understanding the planned value PV with the example : a.
Project started in Oct 2014; b.
Project will be completed in 28 months from Oct 2014; c.
In order to find Future Value which ev formula pmp is correct to calculate from PMP point of view 1.
I have just started to prepare myself for PMP.
Mujahid Hi Fahad, I am working on actual project in which I am using MPP 2010.
I have created Task with their Start and End date, Budgeted Cost as well as Baseline.
Now when I am going on EVM from Table option, MPP list all the Colum of EVM.
In that I can able to see values in AC,CV,EAC and VAC.
Why is it in my P6 I cannot get a correct answer?
Example: ithe budgeted cost is 6,222,390.
If i calculate 24% x 6,222,390.
Thanks Hallo Sir, Thanks for the information.
Compute the earned value, CPI and SPI.
What is your assessment of the project on day 60 as project manager?
Can you please confirm my calculations.
Estimate the schedule and cost variances.
The question is: A project is 5 days behind schedule at day 65.
Find the variances and what they say about the health of the project.
I believe the question is: A project is 5 days behind at day 65.
In this ev formula pmp you can easily separate them as well.
Fahad My Boss asked me to make estimate for 1000m2 of marble tiles, provide and install, Is there any formula for that?
Please correct me if any.
Thanks for your great posts.
Keep up this excellent work, colleague.
Thank you, I find my table is obscured in previous post.
In short I would like to know if BCWP is determined using the budgeted amount or cash flow amount?
Will the client be pleased or angry?
Hi, In some papers we can see the fuzzy earned value.
Thank you One question project duration is 12 month.
Thanks can you help me i have a schedule of values and we have complete 40% of the job but he says that on my schedule of values i have to charge the 40%of just what i have done ex: if it is demolition just to apply my 40%to the demolition and the changes everything of what i have done on my pay application Hi fahad,pls can making games free online project manager assume d progress of a project as 90% because it was done in 90 hours out of the planned 100hrs.
How do I see whether its over or under budgeted?
How do I calculate the expected cost to complete the remaining work?
Dear Fahad, is there any correlation between earn value management and profitability?
Are the project cost including staff salary, operation, insurance etc?
Yes, they are included and EV and PV are measured against cost baseline and actual baseline.
You do not measure PV or EV for salary, operation, or insurance, etc.
Is there a correction needed to earned value if scope removed is % completed being updated or redistributed Donor approved 15 % variance in each line of cost category keeping the total approved budget unchanged.
Can you kindly let me know asap.
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PMP Exam: Earned Value Management - Part 2, Variances and Index Values
EARNED VALUE APOCALYPSE QUIZ: http://tiny.cc/evmapoc2 PASSWORD: pmpstudent PMP Exam Audio.
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