What are the derived metrics from Earned Value? (Contd.)

 Posted by articlesMaint on 9/30/2009 | Category: Project Management Interview questions | Views: 48317


Schedule performance Index

SPI is the ratio of (Earned Value) EV to (Planned Value) PV.
 






SPI = EV / PV


 















SPI Description
1 You are right on schedule.
Less than 1 You are behind schedule.
Greater than 1 you are ahead of schedule.

Forecasting

EVA helps us to also forecast our project schedule below is the metrics for the same
 


















Metric’s Name Description
Budget at completion ( BAC ) This is the total original budgeted cost. It is same as the planned value.
Estimate at completion ( EAC ) This is the final cost of the project. EAC = PV / CPI where PV is the planned value and CPI is the cost performance index.
Schedule at completion ( SAC ) This represents the estimated duration of the project. SAC = Schedule / SPI Where schedule is the estimate schedule and SPI is the schedule performance index.
VAC ( Variance at Completion ) It is the forecast of the final cost variance. VAC = BAC – EAC.

How will we catch up?
 


This is the third view which EV gives us. If the project is not on schedule how do we catch up with the same?. EV gives us something called as To-Complete performance Index (TCPI). TCPI is in an indication of how much we should perform to meet the project schedule.
 





TCPI = ( Planned budget – EV ) / ( Final cost – AC )

 












TCPI Description
Greater than 1 We need to perform better than the schedule.
Less than 1 We can reach the destination with schedule.


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