PROJECT MANAGEMENT (EARNED VALUE ANALYSIS) Assignment 6

Construction Scheduling

Assignment 6

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LEARNING OBJECTIVE:

After successfully completing this assignment, students will be able to:

• Perform Earned Value Analysis

• Estimate the status of the project progress quantitatively

Q1. The following depicts a one-year schedule for a project.

After three months on the job (July 1), the contractor concluded that 20% of Activity F

(Activities A, B, and D are completed) was completed, 80% of Activity C was completed, and

40% of Activity E was completed. The project has cost the contractor a total of $535. For this

project, using earned value concepts determine the schedule variance and the cost variance. State

if the project is over or under budget and if it is ahead of or behind schedule. 40 points

Q2. Please follow the instructions below to update the given Project schedule for Earned

Value Analysis. 60 points

The attached MS Project file contains the relationship between activities, estimated durations,

created resources with the maximum amount of resources available together with their estimated

costs, resources assigned to activities as required. You can do the earned value analysis as you

have all the above-mentioned details in the MS Project file.

The following are the steps to run in MS Project and update the schedule:

1. Start by setting a baseline go to <Project, Set Baseline, choose Baseline, OK>.

You need to set a baseline so that you can compare it with your up-to-date schedule later in the

project. In a baseline information is stored in a snapshot of the project including start dates,

finish dates, durations, costs, and amount of work.

2. The next step is to set a status date go to <Project, Status Date, choose 9/27/2020>.

This is the date in which you are updating project progress, by default it will show actual date,

you should change it accordingly.

3. Following you can update the project by updating the tasks’ progress. On ideal conditions,

activities having a satisfactory progress should have completed the amount of work as planned.

Project should be updated on a weekly basis.

Go to <Project, Update Project, Set 0% – 100% complete>

The Gantt chart will show progress bars on the activities.

4. But you want to introduce some changes to the project assuming that you are delayed on some

tasks. You can update progress for each activity individually or for summary activities. Proceed

as follows:

<On the Gantt chart view, Task, information details> OR double click the particular

activity and under the general tab you can change the completed work value in percentage.

a. Phase 1 task 1: 100% complete

b. Phase 1 task 2: 100% complete

c. Phase 1 task 3: 100% complete

d. Phase 1 task 4: 70% complete

5. Next you want to introduce some changes to the budget:

All the labor and equipment costs have been increased by 20% from the estimated to the actual

costs. <Introduce these changes in the Resource Sheet>. Increase all the standard rate value

by 20% in the resource sheet.

6. You can add now two more columns to the work sheet: Baseline Cost and % Complete.

<Add new Column, baseline cost>

<Add new Column, %complete>

You can proceed now to Earned Value analysis:

7. By using the Reports tool, you can obtain the Earned Value curves or the actual values from

the Visual Reports and from Reports respectively.

Go to <Report, Visual Reports, Earned Value over Time, Weekly, OK>

Go to <Report, cash flow report>

ABOUT EARNED VALUE:

• BCWS (Budgeted Cost of Work Scheduled): Shows how much of the budget should have been spent according to original planned or baseline.

• BCWP (Budgeted Cost of Work Performed): How much of the task’s budget should have been spent, given the actual duration of the task?

• ACWP (Actual Cost of Work Performed): Shows actual costs incurred for work already performed by a resource on a task.

• CV (Cost Variance) = BCWP – ACWP : (-) Over Budget or (+) Under Budget

• SV (Schedule Variance) = BCWP – BCWS: (-) Behind Schedule or (+) Ahead of Schedule

• EAC (Estimated at Completion): Forecast of the total actual costs required to complete the project.

• BAC (Budgeted at Completion): Original cost estimate.

• VAC (Variance At Completion) : Forecasted Cost Variance