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What is earned value reporting?

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What do you mean by earned value reporting? Do you mean reporting on the project performance by using the different earned value metrics such as the CPI and the SPI?

Note: This might seem like a very "silly" question, I know, but I want to make sure what the term means, because my manager told me that he's expecting me to handle the "earned value reporting" tomorrow.
asked 9 years ago by anonymous
Earned Value is a measure of "what did you get for what you paid" ("Quantum Meruit" and is measured against the planned expenditure or your budget.

Most people get hung up with the formulae and believe earned value is too complicated to be worth using, but we all apply the fundamental concepts each time we go to the green grocer.   To see a clear explanation, review this article. http://www.pmforum.org/library/papers/2007/PDFs/Giammalvo-5-07.pdf

As other respondents alluded to, not only can you measure how efficiently you are spending your money using the Cost Performance Index (CPI = Earned Value/Actual Costs) but also how efficiently you are utilizing the resources at your disposal (time) by measuring the Schedule Performance Index (SPI = Earned Value / Planned Value (estimated budget)   

The best and most simple source to learn all the formulae is from the DAU's "Gold Card" http://www.acquisitioninstitute.com/uploads/DAU_GOLD_CARD.pdf but until or unless you first understand the underlying concept, the numbers generated will be of little use to you in terms of turning them into making better management decisions.

BR,
Dr. PDG, Jakarta, Indonesia
9 years ago by anonymous

1 Answer

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Earned value reporting is, as you stated, using all the EVM values in order to report on the status of the project.

For example, if the cost performance index (CPI) is bigger than 1, we know that the project is spending less money than it should.

And when the schedule performance index (SPI) is less than 1, we know that the project is behind schedule.

Other metrics used in earned value reporting are the Earned Value (EV or BCWP - Budgeted Cost of Work Performed),  Actual Value (AC or ACWP - Actual Cost of Work Performed), Planned Value (PV or BCWS - Budgeted Cost of Work Scheduled).
answered 9 years ago by MaplePM (46,940 points)

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