E 372 oftware Project Management: Earned Value Analysis (EVA) Exercises hawn Bohner Office: Moench Room F212 Phone: (812) 877-8685 Email: bohner@rose-hulman.edu
Learning Outcomes: Plan (verb) reate a plan for an intermediate size software project and manage to the plan. Maintain a software project schedule. n n n Do some Earned Value Analysis Examine Estimated to omplete Values Determine good and bad Trends in the progress
You have the WB and have identified the activities. Where do you start with Earned Value Analysis? n Think for 15.11 seconds n Turn to a neighbor and discuss it for a minute n Then can we tawlk?
Earned Value Exercise (PV, A, EV) Task Develop and install ten printer drivers. Budget - $100,000 ($10K per printer driver) Time 10 weeks (1 printer driver per week) At week 5: 4 printer drivers developed and installed $47,500 spent to date PV = $??? A = $??? EV = $??? Q1, 2, 3
Derived EVA Metrics: V and V V = EV A V = EV PV ost Variance n n omparison of the budgeted cost of work performed with actual cost Negative V means the project is over budget chedule Variance n n omparison of work performed during a period of time to what was scheduled to be performed Negative V means the project is behind schedule Q4
Earned Value Exercise (V) ost Variance (V) V = EV - A = $??? Good News: If V value is positive, the project is currently under budget (spending less than planned for the work) Bad News: If V value is negative, the project is currently over budget (spending more than planned for the work)
Earned Value Exercise (PI) ost Performance Index (PI) PI = EV / A =??? Good News: If PI value is >1 or =1, the project cost trend is currently under or at planned budget Bad News: If PI value <1, the project cost trend is currently over budget Q5
Earned Value Exercise (V%) ost Variance % (V%) V% = V / EV =???% Good News: If V% value is positive, the project is currently under budget by the V% Bad News: If V% value is negative, the project is currently over budget by the V%
Awkward!!!
Earned Value Exercise (V) chedule Variance (V) V = EV - PV =??? Good News: If V value is positive, the project is currently ahead of schedule Bad News: If V value is negative, the project is currently behind schedule
Earned Value Exercise (PI) chedule Performance Index (PI) PI = EV / PV =??? Good News: If PI value is >1 or =1, the project schedule trend is currently ahead or on planned schedule Bad News: If PI value <1, the project schedule trend is currently behind schedule Q6
Earned Value Exercise (V%) chedule Variance % (V%) V% = V / PV =???% Good News: If V value is positive, the project is currently ahead of schedule Bad News: If V value is negative, the project is currently behind schedule Q7
Earned Value Exercise Task Develop and install ten printer drivers. Budget - $100,000 ($10K per printer driver) Time 10 weeks (1 printer driver per week) At week 5: 4 printer drivers developed and installed $47,500 spent to date PV = $50,000 A = $47,500 EV = $40,000 V = -$7,500 PI = 0.84 V% = -19% V = -$10,000 PI = 0.80 V% = -20%
But, when will we complete? Estimate at ompletion (EA) Actual costs to date plus a new estimate for all remaining work (original plan no longer valid) EA = A + ET (ET Estimate to omplete) Q8
Well, it s a little involved Estimate at ompletion (EA) Actual costs to date plus remaining budget (current variances viewed as atypical of future variances) Actual costs to date plus remaining budget modified by a performance factor (PI) (current variances are viewed as typical of future variances) EA = A + [(BA - EV) / PI] ~EA = BA / PI Q8
Earned Value Performance Indices Project: Alpha Good Progress 1.6 1.4 1.2 1.0 0.8 0.6 Under budget Ahead of schedule Over budget Behind schedule 0.4 1 2 3 4 5 6 7 8 9 Project Week
Earned Value Performance Indices Project: Beta Divergent Progress 1.6 1.4 1.2 1.0 0.8 0.6 Under budget Ahead of schedule Over budget Behind schedule 0.4 1 2 3 4 5 6 7 8 9 Project Week
Earned Value Performance Indices Project: harlie Losing Ground 1.6 1.4 1.2 1.0 0.8 0.6 0.4 Under budget Ahead of schedule Over budget Behind schedule 1 2 3 4 5 6 7 8 9 Project Week Q9
Recall: PV, EV and A urves
ost and chedule Variance
Another View of ost and chedule Variance Progress PV A chedule Variance ost Variance Time EV
Homework and Reading Reminders n Read ahead with hapter 9 of text for Monday n omplete Homework 5 oftware chedule Due by 11:55pm, Tuesday, October 9 th, 2012 n Final Project W Proj. Mgt. Plan (PMP) ompleted by team Due by 11:55pm, Friday, November 2 nd, 2012. No late days review swap with another team omplete Homework 6 Earned Value Analysis Due by 11:55pm, Tuesday, October 16 th, 2012 n Have a great Fall break!