Evaluate project progress with earned value analysis
Ideal for your project controlling: effectively estimate time and costs. Evaluate your project progress now with the Earned Value Analysis.
Time, costs, performance: project controlling with earned value analysis
Do you know the progress of your projects in terms of time, costs and performance? And can you estimate how efficiently you will complete a project?
The earned value analysis provides you with the completion value of a project and other relevant information, such as the deviation from target to actual, how many work steps have already been completed, how much time was required and how efficiently your projects are running.
Completion value
The earned value provides you with information about the efficiency of your projects and gives you an outlook on the expected project completion. This is because it lets you know whether or not you can still complete the project positively based on the current status of work.
Time & cost development
With earned value software, you can not only keep an eye on the times and costs of your projects, but also estimate how they will develop. This allows you to detect deviations in time and costs before they get in the way of your project progress.
Project efficiency
projectfacts provides you with information on the time and cost efficiency of your projects. This allows you to recognize during the course of the project whether your team is on budget or not. You can also find out whether the project can be completed on schedule according to the current status or whether a delay is to be expected.
Strength of the earned value analysis
The strength of earned value analysis lies in the fact that you can gain valuable information about your project from just a small amount of data. With projectfacts, you can fully exploit this advantage. Project controlling also offers you many other analysis options for your ongoing projects.Determine completion value
In projectfacts, you can calculate the earned value analysis for individual work packages or the entire project. projectfacts automatically calculates the earned value (EV), i.e. the completion value of a project.
You can use the completion value in the software at any time to see what value your project team has already achieved in the period under review. You can draw valuable conclusions by comparing this with the budget currently used or the time that has already elapsed.
Keeping an eye on time and costs
With the earned value analysis, you can see whether your project is on schedule and how the costs are developing. With the plan deviation and cost deviation figures, you can see at a glance if the budget is being exceeded or a delay is imminent.
Time and cost efficiency also help you with forecasting. This allows you to estimate how much more time your project is likely to take or how much more it will cost based on the current completion value.
Test the advantages of Earned Value Analysis now
Take your project controlling to a new level. With the possibilities offered by earned value analysis, you can complete projects on time and within budget.
Elements of the earned value analysis
The earned value analysis consists of three core components: Planned costs, actual costs and earned value. These elements can be placed in different relationships to each other in order to obtain a statement about the time and cost reliability of a project. An explanation of the individual elements can be found below.
Earned value analysis originally came from the US Department of Defense, which is why the terminology is borrowed from English. In principle, you can also calculate the earned value and all associated key figures yourself by hand. You can find the necessary formulas here. However, we can say from experience that it is much easier: simply leave the calculations to our Earned Value Tool.
Planned costs (PC)
The PCs are defined individually for all work packages at the start of the project. At any point during the course of the project, it is possible to measure how much of the budget is likely to have been used up to this point.
Actual cost (AC)
The ac totals all costs actually incurred within the individual work packages. These include material and personnel costs. They can be compared 1:1 with the respective PC and thus allow a target/actual comparison.
Earned value (EV)
The EV reflects the value that has been generated within the project up to a certain point in time. For this purpose, the planned total budget of the project is multiplied by the current project progress as a percentage. A linear cost development is assumed for the calculation.
Completion value (EV) = project progress * project budget
Schedule variance (SV)
In most cases, the EV does not match the PC exactly. Either the project is running better than planned or worse. A negative SV indicates that the project is not likely to be completed within the targeted time frame according to the current status.
Plan variance (SV) = earned value (EV) – planned costs (PC)
< 0: Project is behind schedule
> 0: Project is ahead of schedule
Cost variance (CV)
The CV is the difference between EV and AC. A positive deviation indicates that the project has incurred lower costs than assumed. If the deviation is negative, the costs are higher than they should be at the current stage of the project.
Cost variance (CV) = earned value (EV) – actual costs (AC)
< 0: Project is over budget
> 0: Project is under budget
Time efficiency (Schedule performance index, SPI)
The SPI is the quotient of EV and PV. Values greater than one mean that the project is progressing faster than planned. Values less than one indicate a delay.
Time efficiency (SPI) = earned value (EV) / planned costs (PC)
< 1: Project will probably take (100/SPI) – 100 % longer than planned
> 1: Project probably only requires (100/SPI) – 100 % of the planned time
Cost efficiency (cost performance index, CPI)
The CPI is a measure of the value of the work performed to date, the EV, compared to the AC actually incurred. Cost savings are expressed in a result greater than one, additional costs are incurred for values less than one.
Cost efficiency (CPI) = earned value (EV) / actual costs (AC)
< 1: The budget will probably be exceeded by (100/CPI) – 100 %.
> 1: Only (100/CPI) – 100 % of the budget is likely to be required
Benefit from comprehensive project controlling!
See for yourself and test the possibilities of our software to effectively manage and monitor your projects. Simply start with your personal test account.
Earned value analysis at a glance
Project efficiency
Reliable statements about the efficiency of your projects thanks to our Earned Value Tool
Control instrument
Important management tool for successfully completing your projects
Analysis at various levels
Analysis is possible at the level of work packages or entire projects
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