Earned Value Analysis MOD009BII

Access

•  Project panel → Info Board → Click on the Earned Value Analysis link in the Earned Value area → Earned Value Analysis

Earned Value Analysis

Stop

• To use this function the Earned Value Analysis active checkbox must be activated in the Model and Model Parameters module.

Information

• In this module, the earned value analysis based on baseline status reports and a released status report is displayed.
  • In the module, at the top of window 2, you can see by means of which reports the earned value analysis was created.
• All values are calculated automatically.
• The earned value analysis considers key figures on the following levels: Project, Task, and Task Resource.
• In the Report selection area, released status reports are displayed that can be used for analyzing.
  • If you click on the link of the required status report, report data is copied to the Earned Value Analysismodule.
  • For analysis purposes you can use further status reports which are not yet displayed in the Report selection area.
    • In order to be able to evaluate further status reports in analysis, you must activate the Cost Trend Analysis checkbox in the Cost Trend Analysis module for these reports.
    • These reports are then displayed in the Report selection area and can be used for analysis.

Note

• In the case of structured projects, the selected project and all of its subprojects are displayed in this module. The project data is visualized from lowest to highest project level.

Details

• The earned value analysis is a tool for project controlling.
• The earned value analysis can be used to evaluate the progress of projects.
• The current deadline and cost situation are described using key figures.
• By tracking key figures, a trend analysis can be drawn.
• Important key values here include planned costs, actual costs and earned value (source: Wikipedia).
• Conventional methods of cost monitoring simply compare the planned costs (initial costs) up to a particular point in time against the costs actually incurred (actual costs) up to the same date. This approach will lead to realistic assessments of the remaining and total costs only if an estimate of the level of completion of the work is also incorporated into the calculations. This is achieved by an earned value analysis, which provides key figures to assist those with project responsibilities in recognizing any cost deviations at an early point.

Requirements for using earned value analysis

• Definition and limitation of the project scope
• Determination of all necessary activities
• Display of dependencies and prioritization of activities
• Estimate of activity duration and effort
• The earned value analysis requires plan data in the form of a baseline, i.e.
  • You must create at least one baseline status report.
• Status reports for defined dates are required in order to monitor the progress:
  • At least, one status report must be created and released on a particular date.
• Work progress is the basis for earned value calculation. As the calculation of an exact value can become quite complex, effort estimate, which serves for planning purposes in PLANTA project, can be used.
  • At the end of the month, before creating a status report
    • all actual data (reporting of hours worked, reporting of costs, cost transfer from interfaces etc.) will be refreshed.
    • completed activities will be terminated by setting actual end dates.
    • for work that has been started, the remaining effort will be refreshed.
  • It is important to consider the following factors in order to provide a correct project progress evaluation:
    • correct reporting of project progress
    • compliance with deadlines
    • allocation of activities in manageable packages
    • detailed result description
    • goal-driven orientation of activities