The Earned Value Management Macros

Example 11.1 Integrated Assembly Project

The planned schedule for an assembly project is shown in Output 11.1.1. This schedule can be computed by either of the CPM or PM procedures. (For more details, see Chapter 4 or Chapter 5, respectively.)

Output 11.1.1: Schedule IOUT1

Integrated Assembly Test Project
Initial Schedule

Obs Activity Duration Description Planned Start Planned Finish
1 S 0 Start 01OCT09 01OCT09
2 PD 105 Preliminary Design 01OCT09 13JAN10
3 PDR 21 Prelim Design Review 14JAN10 03FEB10
4 FD 168 Final Design 04FEB10 21JUL10
5 PM 126 Procure Material 10JUN10 13OCT10
6 FDR 21 Final Design Review 22JUL10 11AUG10
7 FP 273 Facility Preparation 01OCT10 30JUN11
8 FC 273 Fabricate Components 12AUG10 11MAY11
9 DA 26 Deliver Assembly 26JUN11 21JUL11
10 FRR 21 Facil Readiness Rvw 01JUL11 21JUL11
11 IA 42 Install Assembly 22JUL11 01SEP11
12 RR 21 Readiness Review 02SEP11 22SEP11
13 T 126 Test 01OCT11 03FEB12
14 TV 63 Test Validation 07JAN12 09MAR12


The budgeted cost rates are given in Output 11.1.2. It is assumed that the activities incur costs continuously.

Output 11.1.2: Cost Rates IATCOST

Budgeted Costs

Obs Activity Rate
1 S 0.0000
2 PD 4.7619
3 PDR 7.1429
4 FD 1.7857
5 PM 6.0317
6 FDR 7.1429
7 FP 4.0293
8 FC 5.1282
9 DA 13.0769
10 FRR 7.1429
11 IA 5.9524
12 RR 7.1429
13 T 7.1429
14 TV 7.9365


The budgeted periodic cost can now be generated with the following specification of the %EVA_PLANNED_VALUE macro:

%eva_planned_value(
    plansched=iout1,
    activity=activity,
    start=start,
    finish=finish,
    duration=duration,
    budgetcost=iatcost,
    rate=rate
);

For brevity, only the first 17 rows of the output data set are shown in Output 11.1.3.

Output 11.1.3: %EVA_PLANNED_VALUE: Periodic Data Set

Daily Planned Value

Obs Period Identifier PV Rate
1 01OCT09 4.76190
2 02OCT09 4.76190
3 03OCT09 4.76190
4 04OCT09 4.76190
5 05OCT09 4.76190
6 06OCT09 4.76190
7 07OCT09 4.76190
8 08OCT09 4.76190
9 09OCT09 4.76190
10 10OCT09 4.76190
11 11OCT09 4.76190
12 12OCT09 4.76190
13 13OCT09 4.76190
14 14OCT09 4.76190
15 15OCT09 4.76190
16 16OCT09 4.76190
17 17OCT09 4.76190


Next, the actual progress of the project through September 30, 2010, is entered. The ACTUAL data set is shown in Output 11.1.4.

Output 11.1.4: Current Status ACTUAL

Status

Obs Activity Actual Start Actual Finish Actual Rate Pct. Comp.
1 S 01OCT09 01OCT09 0.0 100
2 PD 01OCT09 29JAN10 6.0 100
3 PDR 30JAN10 19FEB10 8.2 100
4 FD 20FEB10 10SEP10 3.1 100
5 PM 10AUG10 . 6.4 40
6 FDR 11SEP10 . 8.0 80


These inputs are then used by the CPM procedure with the original schedule to produce an updated schedule, given in Output 11.1.5. (For information about using the CPM procedure, see Chapter 4.)

Output 11.1.5: Updated Schedule UPDSCHED

Updated Schedule

Obs Activity Actual Duration Description Pct. Comp. Start Finish
1 S 0 Start 100 01OCT09 01OCT09
2 PD 121 Preliminary Design 100 01OCT09 29JAN10
3 PDR 21 Prelim Design Review 100 30JAN10 19FEB10
4 FD 203 Final Design 100 20FEB10 10SEP10
5 PM . Procure Material 40 10AUG10 17DEC10
6 FDR . Final Design Review 80 11SEP10 05OCT10
7 FP . Facility Preparation . 06OCT10 05JUL11
8 FC . Fabricate Components . 12OCT10 11JUL11
9 DA . Deliver Assembly . 07JUL11 01AUG11
10 FRR . Facil Readiness Rvw . 06JUL11 26JUL11
11 IA . Install Assembly . 02AUG11 12SEP11
12 RR . Readiness Review . 13SEP11 03OCT11
13 T . Test . 04OCT11 06FEB12
14 TV . Test Validation . 10JAN12 12MAR12


The %EVA_EARNED_VALUE macro can then be used to generate the updated periodic cost, as follows:

%eva_earned_value(
    revisesched=updsched,
    activity=activity,
    start=start,
    finish=finish,
    actualcost=iatupd,
    rate=rate
);

Again, for brevity only the first 17 rows of the output data set are shown in Output 11.1.6.

Output 11.1.6: %EVA_EARNED_VALUE: Periodic Data Set

Daily Earned Value and Revised Cost

Obs Period Identifier EV Rate AC Rate
1 01OCT09 4.13223 6
2 02OCT09 4.13223 6
3 03OCT09 4.13223 6
4 04OCT09 4.13223 6
5 05OCT09 4.13223 6
6 06OCT09 4.13223 6
7 07OCT09 4.13223 6
8 08OCT09 4.13223 6
9 09OCT09 4.13223 6
10 10OCT09 4.13223 6
11 11OCT09 4.13223 6
12 12OCT09 4.13223 6
13 13OCT09 4.13223 6
14 14OCT09 4.13223 6
15 15OCT09 4.13223 6
16 16OCT09 4.13223 6
17 17OCT09 4.13223 6


The %EVA_METRICS macro can be called with a current date of September 30, 2010, as follows:

%eva_metrics(
    timenow='30sep10'd,
    acronyms=long
);

Output 11.1.7 shows the output listing from %EVA_METRICS. Notice that ACRONYMS=long is specified, which results in the long version of the earned value acronyms being used.

Output 11.1.7: %EVA_METRICS: Summary Statistics

Earned Value Analysis
as of September 30, 2010

Metric Value
Percent Complete 20.66
BCWS (Budgeted Cost of Work Scheduled) 2038.00
BCWP (Budgeted Cost of Work Performed) 1374.00
ACWP (Actual Cost of Work Performed) 2020.30
CV (Cost Variance) -646.30
CV% -47.04
SV (Schedule Variance) -664.00
SV% -32.58
CPI (Cost Performance Index) 0.68
SPI (Schedule Performance Index) 0.67
BAC (Budget At Completion) 6650.00
EAC (Revised Estimate At Completion) 7349.50
EAC (Overrun to Date) 7296.30
EAC (Cumulative CPI) 9778.02
EAC (Cumulative CPI X SPI) 13527.00
ETC (Estimate To Complete)* 7757.72
VAC (Variance At Completion)* -3128.02
VAC%* -47.04
TCPI (BAC) (To-Complete Performance Index) 1.14
TCPI (EAC) (To-Complete Performance Index)* 0.68

* The CPI form of the EAC is used.


Next, the %EVA_TASK_METRICS macro is used to produce Cost and Schedule Variance by task.

%eva_task_metrics(
    plansched=iout1,
    revisesched=updsched,
    activity=activity,
    start=start,
    finish=finish,
    pctcomp=pctcomp,
    budgetcost=iatcost,
    actualcost=iatupd,
    rate=rate,
    timenow='30sep10'd,
    acronyms=long
);

The output listing is shown in Output 11.1.8.

Output 11.1.8: %EVA_TASK_METRICS: CV and SV by Activity

Earned Value Analysis by Activity
as of September 30, 2010

Obs Activity BCWS BCWP ACWP CV CV% SV SV% CPI SPI
1 S 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . .
2 PD 500.00 500.00 726.00 -226.00 -45.20 0.00 0.00 0.69 1.00
3 PDR 150.00 150.00 172.20 -22.20 -14.80 0.00 0.00 0.87 1.00
4 FD 300.00 300.00 629.30 -329.30 -109.77 0.00 0.00 0.48 1.00
5 PM 681.59 304.00 332.80 -28.80 -9.47 -377.59 -55.40 0.91 0.45
6 FDR 150.00 120.00 160.00 -40.00 -33.33 -30.00 -20.00 0.75 0.80
7 FP 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . .
8 FC 256.41 0.00 0.00 0.00 0.00 -256.41 -100.00 . 0.00
9 DA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . .
10 FRR 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . .
11 IA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . .
12 RR 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . .
13 T 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . .
14 TV 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . .


Output 11.1.9 through Output 11.1.13 show charts that are produced using the earned value analysis reporting macros. First, the %EVG_COST_PLOT macro is used to generate the plot in Output 11.1.9.

%evg_cost_plot(acronyms=long);

Output 11.1.9: %EVG_COST_PLOT, EV, PV, AC, and EAC$_\mr {rev}$


According to the plan, the earned value percentage complete at the status date of September 30, 2010 (shown by the BCWS plot) should have been 2049/6650, or 30.81%. Instead, the percentage complete (shown by the BCWP plot) is only 1374/6650, or 20.66%.

Next, the %EVG_SCHEDULE_PLOT macro is used to produce the plot in Output 11.1.10. The resulting output shows a disastrous projected completion date of August 1, 2014, based upon the current earned value. This is two years and four months behind the planned schedule end date of March 10, 2012. Based on the performance of the project so far, it is estimated to cost $9793 at completion (EAC$_\mr {CPI}$), amounting to nearly a 50% overrun.

%evg_schedule_plot;

Output 11.1.10: %EVG_SCHEDULE_PLOT: Projected Completion Date


The %EVG_INDEX_PLOT macro is then used to produce the plot in Output 11.1.11.

%evg_index_plot;

Output 11.1.11: %EVG_INDEX_PLOT: Cost and Schedule Performance Index


The plot in Output 11.1.11 shows that the performance factor must be increased from 0.68 to 1.14 in order to stay within the budget.

The %EVG_VARIANCE_PLOT macro is used to produce the plot in Output 11.1.12.

%evg_variance_plot;

Output 11.1.12: %EVG_VARIANCE_PLOT: Cost and Schedule Variance


The plot in Output 11.1.12 shows that both the cost and schedule variance have strayed outside of the area between the 10% threshold plots of the planned value.

Finally, the %EVG_GANTT_CHART macro is used to produce the Gantt chart shown in Output 11.1.13.

%evg_gantt_chart(
    plansched=iout1,
    revisesched=updsched,
    activity=activity,
    start=start,
    finish=finish,
    duration=duration,
    timenow='30sep10'd,
    id=pv ev ac cv cvp sv svp,
    height=3,
    scale=1.5
);

Output 11.1.13: %EVG_GANTT_CHART: Cost and Schedule Variance by Task