Earned value (earned value: A measure of the cost of work performed up to the status date or current date. Earned value uses your original cost estimates saved with a baseline and your actual work to date to show whether the actual costs incurred are on budget.) analysis allows you to measuring project performance. It indicates how much of the budget (budget: The estimated cost of a project that you establish in Project with your baseline plan.) should have been spent, in view of the amount of work (work: For tasks, the total labor required to complete a task. For assignments, the amount of work to which a resource is assigned. For resources, the total amount of work to which a resource is assigned for all tasks. Work is different from task duration.) done so far and the baseline cost (baseline cost: The original project, resource, and assignment cost as shown in the baseline plan. The baseline cost is a snapshot of the cost at the time when the baseline plan was saved.) for the task (task: An activity that has a beginning and an end. Project plans are made up of tasks.), assignment (assignment: A specific resource that is assigned to a particular task.), or resources (resources: The people, equipment, and material that are used to complete tasks in a project.).
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Learn about earned value analysis
Three key values are at the root of earned value analysis:
- The budgeted cost of individual tasks as they are scheduled in the project plan, based on the costs of the resources that are assigned to those tasks, plus any fixed costs that are associated with the tasks. This is the budgeted cost of work scheduled (BCWS) (BCWS: The earned value field that shows how much of the budget should have been spent, in view of the baseline cost of the task, assignment, or resource. BCWS is calculated as the cumulative timephased baseline costs up to the status date or today's date.). BCWS is the baseline cost up to the status date (status date: A date that you set [rather than the current date] for reporting the time, cost, or performance condition of a project.) that you choose. Budgeted cost values are stored in the baseline fields, or, if you saved multiple baselines, in the Baseline1 through Baseline10 fields.
- The actual cost that is required to complete all or some portion of the tasks, up to the status date. This is the actual cost of work performed (ACWP) (ACWP: Shows actual costs incurred for work already performed by a resource on a task, up to the project status date or today's date.). Normally, Project correlates the actual costs with the actual work.
- The value of the work that is performed by the status date, measured in currency. This is the value earned by the work performed and is called the budgeted cost of work performed (BCWP) (BCWP: The earned value field that indicates how much of the task's budget should have been spent, given the actual duration of the task. Note that Project calculates BCWP at the task level differently than at the assignment level.). This value is calculated for each individual task, but is analyzed at an aggregate level (typically at the project level).
Earned value analysis is always specific to a status date that you choose. This can be the current date or any date before the current date.
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Calculate and review earned value
- Click the File tab, and then click Options.
- On the Project Options page, click Advanced.
- In the Default task Earned Value method box, click the calculation method that you want Project to use when it calculates the BCWP.
Note Changing this setting affects only the tasks that are added to the task list after the setting is changed. It has no effect on the existing tasks. To change the earned value method for the existing tasks, in the Gantt Chart, double-click the task whose earned value method you want to change. Click the Advanced tab. In the Earned value method box, click the calculation method that you want.
- In the Baseline for Earned Value calculations box, select the specific set of baseline values that you want Project to use when it calculates the earned value totals, and then click OK.
- To see project and task-level earned value totals in tables, on the View tab, in the Task Views group, click the lower half of Gantt Chart, and then click More Views.
- In the Views list, click Task Sheet, and then click Apply.
- On the View menu, point to Table, and then click More Tables.
- In the Tables list, click Earned Value, Earned Value Cost Indicators, or Earned Value Schedule Indicators, and then click Apply.
Note To see detailed information about each Earned Value field, point to the column heading, and press F1.
- To see a breakdown of the earned value of tasks by period, so you can determine the exact date that your project will run out of money, on the View tab, in the Task Tab group, click Task Usage.
- Click the Format tab, and then in the Detail group, click Add details.
- Click the Usage Details tab.
- In the Available fields list, select the Earned Value fields that you want to display, click Show, and then click OK.
- Use the Earned Value Over Time report to view a chart that plots AC (actual cost of work performed), planned value (budgeted cost of work scheduled), and earned value (budgeted cost of work performed) over time. To generate this report, on the Project tab, in the Reports group, click Visual Reports. Click Earned Value Over Time and then click View.
- If you want to see the values in the Earned Value fields calculated up through and including a date that you specify rather than the current date, click Project Information in the Project group. In the Status date box, type or select the date that you want Office Project 2007 to use as a status date.
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