Tuesday Tips: Earned Value Calculations
We have gotten a few training issues regarding Earned Value Calculations being ‘off’. 90% of these issues are cleared up once the calculations behind the fields are understood. This information holds for 12.1.1. and higher. This information uses the default column/field labels for the EV fields. Unless stated otherwise, the calculation holds at all levels of the WBS.
Some fields require a baseline, some do not. This has been noted. If you do not have a baseline, to see the Project Level EV information, you should add the Project Level fields to a sub page so that they can be displayed, as they will not display on the baseline view if a baseline is not present.
A prettier word doc with this information has also been attached.
BAC: Baseline at Completion
BAC: (Sum of all the assignment level Actual Cost values for the project) + ETC (Cost) at the time the baseline is recorded. This will include future posted actual costs.
Baseline required: Yes
BCWS: Budgeted Cost of Work Scheduled
BCWS: Sum of the BAC through a point in time. That point in time is the Project As Of Date, if set, else the current system date.
Baseline required: Yes
BCWP: Budgeted Cost of Work Performed (a.k.a EV)
BCWP: Depends on the Earned Value Calculation Method
Baseline Required: Yes
Earned Value Calculation Method -
Percent Complete:
Task Level: BCWP = BAC * %Complete
Project Level: BCWP = Sum of [BCWP] for all Level 1 Tasks
0/100:
If % Complete is 100, BCWP = BAC, else BCWP = 0
50/50:
If % Complete is > 0 but < 100, BCWP = BAC / 2
If % Complete = 100, BCWP = BAC
If % Complete = 0, then BCWP = 0
Level of Effort (LOE)
BCWP = BCWS
Weighted Milestones - use BCWP Override field – not calculated by Clarity
Milestone Percent Complete (PC) - use BCWP Override field – not calculated by Clarity
Apportioned Effort (AE) - use BCWP Override field – not calculated by Clarity
ACWP: Actual Cost of Work Performed
ACWP: Sum of the actuals on the project through a point in time. That point in time is the Project As Of Date, if set, else the current system date. If you have future posted actuals, they will not be included in this calculation unless your As Of date is at or beyond the last date of posted actuals.
Baseline Required: No
Detail Task Level:
ACWP = Sum of all assignment Actual Cost values for the task
Summary Task:
ACWP = Sum of ACWP for Child Tasks
Project Level:
ACWP = Sum of ACWP for all Level 1 Summary Tasks
EAC: Estimate at Completion
EAC: Aggregated Total for the cost of all actuals over time
EAC = ACWP + [(BAC – BCWP) / CPI] where CPI = BCWP / ACWP
Baseline Required: Yes
EAC (T): Estimate at Completion (Cost of Total Effort)
EAC (T) = ACWP + ETC (Cost)
Baseline Required: No
EAC (AT): Estimate at Completion (Atypical)
EAC (AT) = ACWP + (BAC – BCWP)
Baseline Required: Yes
ETC (Cost): Cost of Estimate to Complete
ETC (Cost) = remaining labor cost (ETC * billing rate) + remaining non-labor cost
Baseline Required: No
ETC (AT): Atypical cost of Estimate to Complete
ETC (AT) = BAC – BCWP
Baseline Required: Yes
ETC (T): Typical cost of Estimate to Complete
ETC (T) = (BAC – BCWP) / CPI where CPI = BCWP / ACWP
Baseline Required: Yes
CV: Cost Variance
CV is the amount of what has been accomplished versus what has been spent
CV = BCWP – ACWP
Baseline Required: Yes
SV: Schedule Variance
SV is the amount of work performed versus what is scheduled to date
SV = BCWP - BCWS
Baseline Required: Yes
CPI: Cost Performance Index
CPI is the ratio of work performed to money spent
CPI = BCWP / ACWP
CPI >= 1 -> favorable – at or under budget
CPI < 1 -> unfavorable – over budget
Baseline Required: Yes
SPI: Schedule Performance Index
SPI is the ratio or work performed to work scheduled
SPI =BCWP / BCWS
SPI >= 1 -> favorable – ahead of schedule
SPI < 1 -> unfavorable – behind schedule
Baseline Required: Yes