Earned Value Management (EVM)
Presented by
Scott Letasi, SWFWMD
Watershed Management Program
Consultant Meeting
July 19, 2007
What is Earned Value Management?
EVM is the use of an integrated
management system that coordinates
work scope, schedule and cost goals, and
objectively measures progress toward
these goals.
Earned Value Management Approach
• The basic concept of earned value is to
evaluate a project’s health based on the Work
Planned, Work Performed, and Dollars Spent.
Planned
Performed
Spent
$80,000
$55,000
$70,000
Behind Plan $25,000
Over Running $15,000
Concept Applied to WMP
• Planned Value – Cost and Schedule from
the Project Development Task documented
in the project Agreement and Work Orders.
• Performed (Earned Value) – Task
deliverables received and approved by the
Districts Project Manager.
• Spent (Actual Cost) – Invoiced Amount
based on fixed price contract.
Earned Value Terminology
•
•
•
•
•
•
•
•
BCWS – Budgeted Cost of Work Scheduled
BCWP – Budgeted Cost of Work Performed
ACWP – Actual Cost of Work Performed
BAC – Budget at Completion
EAC – Estimate at Completion
CV – Cost Variance
SV – Schedule Variance
VAC – Variance at Completion
Why Earned Value Management?
Section 8 of Private Entity Agreements
8. REPORTS. The CONSULTANT will provide the DISTRICT with any and all
reports, models, studies, maps or other documents resulting from the
PROJECT. Additionally, two (2) sets, electronic and hardcopy, of any final
reports must be submitted to the DISTRICT as Record and Library copies.
The CONSULTANT must submit a Work Order status report with each invoice
to include the Project Manager's assessment of the PROJECT'S actual progress
as compared to the approved performance schedule. Details must include any
deficiencies and the recovery actions completed and planned.
Work Order Status Reports
•
•
•
•
•
Status Report (Memo & Table)
Earned Value (Chart)
Deficiencies Report (Text)
Recovery Action Plan (Chart & Text)
Recovery Action Completion Report (Chart
& Text)
Example Status Report Table – May 2007
Citrus County Crystal River WMP (L657) Project Status
Task
Number
Task Description
Scheduled
Completion
Percent
Complete
Actual
Completion
Comments
1. Digital Topographic Information
1.2
Digital Terrain Model (DTM)
Generation
April 2007
100
February 2007
Approved Deliverables
April 2007
100
March 2007
April 2007
100
April 2007
May 2007
100
May 2007
May 2007
70
1.6
2. Watershed Evaluation
2.1
2.2
2.3
2.4
Existing Watershed
Feature Data Evaluation
Hydrologic Feature Inventory
Hydraulic Feature Inventory
Field Reconnaissance
May 2007
2.5
Identification of Surveys
June 2007
2.6
Preliminary Junction Reach
Coverage Development
October
2007
2.8
Immediate Maintenance
Evaluation
Work
Order 2
2.9
Approved Watershed Evaluation
Deliverables
Dec 2007
Anticipate Completion in June 2007
Letters to be sent to property owners by the
District
70
Deep Creek Gulley Project
Planned Value
180000
160000
140000
Dollars ($)
120000
100000
BCWS (PV)
80000
60000
40000
20000
0
0.0
2.0
4.0
6.0
8.0
Tim e (Months)
10.0
12.0
14.0
Deep Creek Gulley Project
Earned Value
180000
160000
140000
Dollars ($)
120000
100000
BCWS (PV)
ACWP/AC
BCWP/EV
80000
60000
40000
20000
0
0.0
2.0
4.0
6.0
8.0
Time (Months)
10.0
12.0
14.0
Performance Indicies
• Cost Efficiency
CPI = BCWP (EV) / ACWP (AC)
• Schedule Efficiency
SPI = BCWP (EV) / BCWS (PV)
Example: EV = $75k, PV = $100k
SPI = $75,000/$100,000 = 0.75 = 75% Efficient
Estimate at Completion
Based on Cost
EAC = Actuals to Date + (Work Remaining / Efficiency Factor)
EAC = $75,000 + ($25,000 / 0.75) = $108,333
Based on Schedule
EAC = Current Date + (Planned Completion Date - BCWS) / Eff. Factor
EAC = 2.8 Months + ( Month 12 - Month 2) / .75 = 16.1 Months
Deep Creek Gulley Project
Estimate at Completion (EAC)
180000
160000
140000
Dollars ($)
120000
BCWS (PV)
100000
ACWP/AC
BCWP/EV
80000
EAC
60000
40000
20000
0
0.0
2.0
4.0
6.0
8.0
10.0
Time (Months)
12.0
14.0
16.0
18.0
Recovery Action Plan
Identify what project management practices can
be implemented to recover from a SPI < 1.
• Increase Level of Effort – Have staff spend 20
hours a week on the project instead of 15 hours.
• Increase Manpower – Add additional staff
temporarly to the project to complete a task
allowing the project to get back on schedule.
• Implement a Tool – Increase efficiency of a
process to reduce the effort and time spent.
Deep Creek Gulley Project
Recovery Action
180000
160000
140000
120000
Dollars ($)
BCWS (PV)
100000
ACWP/AC
BCWP/EV
EAC
80000
Recovery
60000
40000
20000
0
0.0
2.0
4.0
6.0
8.0
10.0
Tim e (Date)
12.0
14.0
16.0
18.0
Work Order Status Reports
•
•
•
•
•
Status Report (Memo & Table)
Earned Value (Chart)
Deficiencies Report (Text)
Recovery Action Plan (Chart & Text)
Recovery Action Completion Report (Chart
& Text)
Discussion / Q&A
Contact Information
Scott Letasi
[email protected]
(352) 796 -7211 x 4287