EVM in Cora PPM

Glossary of Terms

Introduction

Cora PPM includes a fully functional EVM module.  This enables an Organization to select the Earned Value (EV) Techniques they want to use at system, project and task level.  Additionally, it enables an Organization to select the ETC and EAC formulas they wish to use at system and project level.

Reference Documents and Sites

Department of Defence Earned Value Management System Interpretation Guide March 14, 2019

Humphreys EVM Basic Concepts May, 2012

www.energy.gov/projectmanagement - this site has a suite of Tutorials on EVMS Guidelines and Functionality

www.projectengineer.net/the-earned-value-formulas

https://acqnotes.com/acqnote/tasks/evms-equations

https://www.simplilearn.com/earned-value-management-and-its-formulas-article

System level Admin Settings

Each Organisation has the option to configure Cora’s EVM module to meet their needs. The configuration options available are described in this section.

EV Techniques

Cora PPM includes the eight standard EV Techniques.  An Admin user can select the techniques that an Organization uses.  

Note: Percent Complete is the default EV technique and it is always selected.  

EAC Calculations

Cora PPM includes four formulas for calculating EAC. An Admin user can select the formula(s) that an Organization uses.

Note: ‘BAC/CPI Cumulative’ is the default EAC formula and it is always selected.

*See Appendix for guidance on when to use each of the 4 formulas.

Project Level Configuration

EV Techniques

The options available for selection on a project are all those selected at Admin level. A user can decide to remove some EV techniques from individual projects. They can also set the default method to be used on a project. This default will apply to all tasks added after the default was selected.

EAC Formula

The EAC Formula(s) available for selection are all those selected at Admin level. User must select a single EAC formula for the project.

Task Level Options

The EV Techniques available for selection at task level are all those selected at Project level. The default EV Technique used on each task is the technique selected as default for the project. User can update this to another EV Technique enabled on the project.

Earned Value Techniques

Percent Complete

Percent Complete is the default EV Technique and it is calculated as:

% of task completed (Current) * Task Budget at Completion (from last approved Baseline)

Example

Task 1 has a budget of $1,000.  At reporting date it was scheduled to be 50% complete but is 40% complete. AC is $460

50/50

50/50 is an optional EV technique and is calculated as:

If task % complete = 0 Earned Value = 0, If task % complete >0 and < 100 Earned Value = 0.5 * Task Budget at Completion (from last approved Baseline), If task % complete = 100 Earned Value = Task Budget at Completion (from last approved Baseline)

Example

Task 1 has a budget of $1,000.  At reporting date it was scheduled to be 50% complete but is 40% complete. AC is $460

XX/YY

XX/YY is an optional EV technique. When this is selected the user must specify the values for XX and YY. These values must total 100. EV is calculated as:

If task % complete = 0  Earned Value = 0, If task % complete > 0 and <100  Earned Value = 0.XX * Task Budget at Completion (from last approved Baseline), If task  % complete = 100 Earned Value = Task Budget at Completion (from last approved Baseline)

Example

Task 1 has a budget of $1,000.  At reporting date it was scheduled to be 50% complete but is 40% complete. AC is $460

XX was set at 40, YY was set at 60

0 to 100

0 to 100 is an Optional EV Technique.  

EV is calculated as: If task  % complete < 100 Earned Value = 0, If task  % complete = 100 Earned Value = Task Budget at Completion (from last approved Baseline)

Example

Task 1 has a budget of $1,000.  At reporting date it was scheduled to be 50% complete but is 40% complete. AC is $460

Incremental Milestone

Incremental Milestone is an optional EV Technique. When this is the selected EV technique on a task, additional data points are required.

Associated Milestone(s) - this links the task to one or more 0 duration, 0 effort Milestones - when each Milestone is completed the EV associated with the Milestone is earned. 

EV for the task is calculated as follows:

If Milestone is not complete EV = 0

If Milestone is complete EV = EV amount defined for that task and Milestone.

Example

Task 1 has a budget of $1,000.  AC is $460

It is associated with Milestone X which is not complete. The EV amount entered against the associated Milestone is $1,000

At Reporting Date 1

At Reporting Date 2 Milestone X is complete

Note: When a Milestone is selected as an associated Milestone the EV technique panel is on Task Details is not available.
 

Units Complete

Units Complete is an optional EV Technique. When this is the selected EV technique additional data is entered in the Planned Resources tab on the task.

EV is calculated as: Sum of (Number of Units Completed * Cost per Unit).  

Note: This is a sum as there may be more than one type of units.

Task 1 has a budget of $1,000.  Budget is based on:

5 widgets at $40 per unit and 15 boards at $50 per unit

At reporting date 3 widgets and 9 boards are complete. Plan was for 2 widgets and 9 boards to be complete

Apportioned Effort

Apportioned Effort is an optional EV Technique. When this is the selected EV technique on a task two additional data points are required:

Prime task - this is another task on the same project where the EV technique is not Apportioned Effort. The Prime task may also not be a 0 duration Milestone. 

Related % - this is a % (Must be greater than 0 and less than or equal to 100%) of EV on the Prime task that this task receives. 

EV on this task (apportioned effort task) is calculated as: EV on Prime Task * Related %

Example

Task 1 is the Prime Task and has a budget of $2,000. At reporting date it was scheduled to be 50% complete but is 40% complete. AC = $1,000

Task 2 has the EV technique Apportioned Effort and has selected Task 1 as it’s Prime task. The related % is set to 10%

Additional Notes on Apportioned Effort

The EV, BAC and PV on Task 2 are calculated by applying the related % to the EV, BAC and PV on the related task.

Level of Effort

Level of Effort is an Optional EV Technique. When this is the selected EV technique on a task Earned Value is calculated as follows:

Earned Value = BCWS Budgeted Cost of Work Scheduled at current Reporting Date (From last approved Baseline)

Example

Task 1 has a budget of $1,000.  At reporting date it is 44% complete. Planned % Complete for this date is 50%. AC is $460

 All EVM Metrics

Point to be aware of when using EAC1 and EAC3

These EAC formulas use CPI in the divisor.  If you do not yet have Actual Costs on a task CPI is undefined. This results in EAC1 and EAC3 equalling 0. If you do not have Actual Costs on a project you should consider using another EAC Formula for the project.                        

Baselines

Baselines are an integral part of EVM functionality. Each Organization will have their own procedures about when to Baseline. This section details the basic Initial Baseline flow within Cora PPM.

EVM Widget

The EVM Widget is used for reporting on and monitoring EVM metrics on each project.

Chart

Graphical display showing key EVM Metrics for tasks or Control Accounts

Grid

Tabular display with all EVM Metrics for tasks or Control Accounts

Filters

The filters enable user to filter by Task Level or Control Account.

Baseline Selection

The EVM Widget allows user select the Baseline they want to use when calculating Metrics.  This defaults to Last Approved Baseline and a warning Icon is displayed when any other Baseline is being used.

Performance Measurement Baseline

Cora PPM includes 4 money fields which can be captured at Project level. These fields together with the Task and Project level Metrics provide the information needed to support the Performance Measurement Baseline.  The 4 fields are available as Smart Form fields and are:

• Authorized Unpriced Work – used to capture the budget approved for work that has been authorized but has not yet been priced
• Contingency – used to capture the contingency amount for the project
• Management Reserve – used to capture the Management Reserve amount for the project
• Unallocated Budget – used to capture budget that has been approved but has not yet been allocated to tasks.

The total of the values in these 4 fields is added to the Sum of the BAC (Budget at Completion) and this is called ‘Total Budget’. This field is one of the Metrics displayed to the right of the chart on EVM Widget.

Appendix

EAC Formulas – suggestions on when each should be used

EAC1 =BAC/Cumulative CPI

This formula is used when the original estimation is met without any deviation. It signifies that your project is going well: you are maintaining the CPI and SPI as 1, and you should continue the project in the same way. It is always good for a project manager if he or she is maintaining the CPI and SPI as 1 or even more than 1.

EAC2 = AC + (BAC - EV)

This formula is used when the current deviation with the original estimation is thought to be different in the future. It is generally AC plus the remaining value of the work to perform.

EAC3 = AC + [BAC - EV / (Cumulative CPI x Cumulative SPI)]

EAC4 = AC + ETC2 (Bottom-up ETC)

This formula is used when the original estimation is fundamentally flawed. It calculates the actual plus new estimate for the remaining work.

Guidance on understanding SV, SPI, CV, CPI