There are several techniques used for measuring the performance and progress of the project during its lifecycle. One of the most valued approaches in this regard is earned value management.
It’s clear to every project manager that measuring project performance as a key performance indicator during project life is really important for success.
Therefore, the earned value management template excel is utilized by the project managers for the comparison of the planned value of the project plan with the actual value during project execution.
Earned Value Management Template
Earned value management excel template use earned value analysis for the management of project schedule and costs. While the project plan is used as a baseline for the computing earned value indexes.
Earned value analysis template helps the project managers to compare the consumption of time and cost resources against the actuality of work completed.
Also, it helps in the refinement of the project completion schedule and the overall cost of the project.
Essential of Earned Value Management Template
Due to the complex nature of the earned value management system. The EVA Template includes different tables for planned value, actual value, earned value, and performance metrics.
Let’s discuss each component briefly to understand how to use the earned value management template;
Planned Value Template: At any point in the project schedule, planned value is the range of cost and schedule of project work. This table contains WBS, a list of tasks and sub-tasks, and the total budgeted cost for each task with the division of the period of multiple years. In the end, the total budgeted cost of the project and cumulative planned value is calculated automatically by the template.
Actual Costs Template: This table includes the actual values of the expenses incurred during the execution of the activity. Also, contains WBS, list of task and sub-tasks, and total actual cost for each task with the division of the period of multiple years. In the end, the total actual cost of the project and the cumulative actual cost is calculated automatically by the template.
Earned Value Template: Earned value is a quantitative indicator for defining how much work has been completed. This table contains WBS, a list of tasks and sub-tasks, and the total budgeted cost for each task with the division of the period of multiple years. In the end, the cumulative actual cost is calculated automatically by the template.
Performance Indexes in Earned Value Management Template
After calculation of cumulative planned value, actual cost, and earned value. The template utilizes the data for the calculation of project performance indexes of the earned value management system.
These indexes are automatically calculated as below;
- Cost variance is calculated by subtracting the cumulative actual cost of the project from the cumulative earned value.
- Schedule variance is calculated by subtracting the cumulative planned value of the project from the cumulative earned value.
- A cost performance index is calculated by dividing the cumulative earned value by the cumulative actual costs.
- A schedule performance index is calculated by dividing the cumulative earned value by the cumulative planned value of the project.
- The estimated cost at completion is calculated by adding actual costs and estimate to complete.
In conclusion, due to easy usability and excel spreadsheet nature. Excel Earned value management template helps to track, monitor, and control the schedule and cost of the project based on performance indexes such as CV, SV, CPI, SPI, and EAC.
Format Of Earned Value Management Template Excel
- (BAC) Budget at Completion
- Budgeted Cost of Work Performed (BCWP)
- (AC) Actual Cost
- (PV) Planned Value
- (CV) Cost Variance
- (SV) Schedule Variance
- (CPI) Cost Performance Index
- (SPI) Schedule Performance Index
- (ETC)Estimate to Completion
- (EAC) Estimate at Completion
- (VAC) Variance at Completion
Budget at Completion: Here we set a budget for the completion of the project; this budget is specified during project planning.
Budgeted Cost of Work Performed (BCWP): The total amount of budget that is approved for completion of project in a specific frame time is called Budgeted Cost of Work Performed.
Actual Cost (AC): It is the amount that has been utilized during the completion of the project within a specified time frame.
Planned Value (PV): This is the amount that is set for project execution. In other words, it’s the pre-planned value of the amount.
Cost Variance (CV): The differential value of amount between Actually performed coast and budgeted cost.
Scheduled Variance (SV): It is the differential value of the amount between the budgeted cost of actual work performed and the budgeted cost of the work schedule.
Cost Performance Index (CPI): This index calculates values on this formula “CPI = EV / AC”. In other words, it is the ratio of the budgeted cost of work completed over the actual cost of the work performed.
Scheduled Performance Index (SPI): SPI = “BCWP / BCWS” is the formula to evaluate SPI. This index is the ratio of the budgeted cost of work performed to the budgeted cost of work scheduled.
Estimate to Complete (ETC): This is the amount that increases at the time of project completion.
Estimate at Completion (EAC): The sum of all assumed costs at the time of project completion is called EAC.
Variance at Completion (VAC): This refers to a differential value of the Budget at Completion (BAC) to the Estimate At Completion (EAC).