Hi,
in my last Post I have explained what is EVM! Now I will explain how to deal with it in MS PROJECT 2010!
First of all, here is the question: “What do we need for EVM?”. The answer is:
- Tasks
- Resources with pay rates
- All other costs (if any)
- Saved Baseline
- Actuals
- Status Date
For simplicity I will show how to make EVM on two Tasks, and one Resource:
Tasks are:
Now I will save the Baseline:
and then:
OK. Let’s look at the Cost table:
Each Task has planned 2 days Durations, which means 8 hours per day * 2 days * $100 per hour = $1.600
I have to tell MS PROJECT which Baseline to use for EVM:
and then:
OK! Now suppose that I did not put any actuals and that there are two days passed since project start, so it is 21.03.2012. I will make this data as a Status date:
and I will get:
Now, I will apply Earned Value Table to my View:
and then:
and finally I‘ll get:
TASK 1 is not finished, it is not started, and the Status Date is 21.03.2012. So Schedule Variance (SV) is $1.600! It is simple! But now, suppose that Task 1 is finished, but it duration was 3 days instead of 2 days (planned):
and then:
I will get:
As you can see: NOTHING CHANGED! Why? Is it a bug? No, it is NOT A BUG! Notice that Status date is still 21.03.2012, and that means that Earn Value Table calculates what was done until 19.03.2012 and 20.03.2012. Because Task 1 has start date 19.03.2012, and NEW finish date 21.03.2012, I will now make 22.03.2012 as Status Date, and I will get:
I will explain the figures:
- Planned Value (or Budgeted Cost of Work Scheduled) for Task 1 was $1.600
- Earned Value (or Budgeted Cost of Work Performed) for Task 1 was $1.600
- Actual Cost is $2.400 (3 days * 8 hours per day * $100 per hour = $2.400)
- Schedule Variance (in $) is 0 because the Task 1 is finished
- Cost Variance is Earned Value – Actual Cost = –$800 (we had spent too much)
- EAC (Estimate at Completion) is $2.400 (it is same as Actual Cost, because Task is finished)
- BAC (Budgeted at Completion is $1.600
- Schedule Variance for Task 2 is –$800 because the Task 2 didn’t start as planned! It is late 1 day
Now I will put Duration 6 days for Task 2:
As you already know I have to set a new Status Date if I want to see changes. I will set Status date one day after Actual Finish (e.g. 30.03.2012), and I will get:
I will explain the figures again (now for the Task 2 only, because figures for the Task 1 are the same):
- Planned Value (or Budgeted Cost of Work Scheduled) for Task 2 was $1.600
- Earned Value (or Budgeted Cost of Work Performed) for Task 2 was $1.600
- Actual Cost is $4.800 (6 days * 8 hours per day * $100 per hour = $4.800)
- Schedule Variance (in $) is 0 because the Task 2 is finished
- Cost Variance is Earned Value – Actual Cost = –$3.200 (we had spent too much)
- EAC (Estimate at Completion) is $4.800 (it is same as Actual Cost, because Task is finished)
- BAC (Budgeted at Completion is $1.600
I can spend hours and hours to write this Post, to explain more and more complicated examples of EVM, but I will not. I will give you advice! If you are novice with EVM, BEFORE you use it LEARN IT. Slow, step by step, from simple examples to more and more complicated examples. If you will not take this approach you will find yourself very uncomfortable with EMV.
Good Luck!
Nenad Trajkovski 
Thank you Nenad 🙂
Thanks, informative
Thank you Nenad! This is an excellent article, crystal clear.
Many thanks for this straightforward post.
Hello Nenad, thanks for taking the time to post this, I was about to pull my hair out after rebaselining my project. Couldn’t figure out how to have MS Project generate EVM data using the new baseline, and your post showed exactly how to deal with it.
Again – many Thanks!
Pug McThug
Hi Nenad, thanks for taking the time to post this.
I am new with MS Project 2010 and I wonder if is there any way to export data into Excel 2010 in order to have an Ernad Value S-curves similar to those which was possible using MS Project 2003.
Thanks in advance for your kind reply.
Raffaele
Hello
While using the Microsoft Project, to evaluate the implementation rate for my organizations workplan it seemed difficult to ascertain the percentage of amount spent from the budget or for each activity. It was however easy to get percentage of work completed. question 2 is thus how can this percentage of amount spent be rolled up?Can someone help shed more light on this aspect?
I will use custom fields, and then you can do whatewer you want!
I will be very grateful for this, how soon can I get this?
I wrote about this in https://ntrajkovski.wordpress.com/2011/12/08/creating-own-budget-in-ms-project-2010part-1/ https://ntrajkovski.wordpress.com/2011/12/12/creating-own-budget-in-ms-project-2010part-2/
Dear Nenad,
This was very useful for me thank you so much
can i send you a copy of the project? still have some issues
Of course you can
Dear Nenad, This is a sample of the project, the workplan is structured in such a way that theresource names are the thematic arears such as SPO unit or HFO unit and the task all have the same timeline (Start and End date). I noticed that the amount of money set at the baseline reflects on all the task even if they have different cost attached to them.Can costing be done at the sub activity level? and finally how can i get percentatge of amount spent. Thanks a lot Nenad for the information you have shared this far.
Thanks Mustapha Tanko..
________________________________
where is the mpp file?
Sent it guess it dint attach…. can you send me your email?
Mustapha Tanko..
________________________________
nenadtrajk@gmail.com
Great Nenad, You are a Genius!
Thank you thank you thank you for posting this!
You are welcome!
Totally useful! and its well explained thanks!
Hi Nenad ,
It was really useful & easy to understand also. Thanks!!