View source for Earned Value Management (EVM) in construction projects

==Example==

In this section there will be an short simplified example of EVM in a project that has five tasks A,B,C,D,E.
For each of the tasks the duration has been estimated, the cost of each task per week and finally the total cost of each task, as can be seen in table A.
These cost are called ''Planned value''(PV) in EVM.
In more detailed examples and projects a <span class="plainlinks">[https://en.wikipedia.org/wiki/Statement_of_work Statement of Work(SOW)]</span> can be very useful if used in the right ways. <ref name="example"></ref>
{| class="wikitable" style="text-align:left;"
|- style="vertical-align:top;"
|+ style="caption-side:bottom; "|'''Table A:''' Task description.
! Task
! Predecessor
! Duration(Weeks)
! Cost/Week
! Total Cost
|-
|- style="vertical-align:top;"
| '''A'''
|
|2
|300
|600

|-
|- style="vertical-align:top;"
| '''B'''
|A
|3
|400
|1200

|-
|- style="vertical-align:top;"
| '''C'''
|B
|3
|400
|1200

|-
|- style="vertical-align:top;"
| '''D'''
|B
|2
|200
|400

|-
|- style="vertical-align:top;"
| '''E'''
| D
| 3
| 100
| 300

|-
|- style="vertical-align:top;"
| 
| 
| 
| 
| '''3700'''

|}

To keep track of the status of each of the projects a <span class="plainlinks">[https://en.wikipedia.org/wiki/Gantt_chart Gantt Chart]</span>
has proven to be very useful since it provides much needed clarity, helps with coordination and last but not least time management, helping teams understand the overall impact of project delays which is an vital part of the EVM method.
In this Gantt chart there can be seen the planned schedule and the actual performance of the project up until week 7 when the project manager decided to take a closer look at the progression of the project. <ref name="example"></ref>
[[File:2.png‎|500px|thumb|right|'''Figure A:''' Tasks.]]


His report at the end of week 7 can be seen in table B and C. 
Using the data from that table to fill up the ''Gantt Chart''. According to the report and from the ''Gantt Chart'' it can be concluded that task '''C''' and '''D''' are behind schedule.

{| class="wikitable" style="text-align:left;"
|+ style="caption-side:bottom; "|'''Table B:''' Incurred costs at week 7.
|- style="vertical-align:top;"
!Colspan="3"|Report at end of week 7
|-
|- style="vertical-align:top;"
|''' Activity '''
|''' Actual % completed '''
|''' Incurred cost '''

|-
|- style="vertical-align:top;"
| '''A'''
|100
|600

|-
|- style="vertical-align:top;"
| '''B'''
|100
|1400

|-
|- style="vertical-align:top;"
| '''C'''
|33
|500

|-
|- style="vertical-align:top;"
| '''D'''
|50
|200

|-
|- style="vertical-align:top;"
| '''E'''
| 
|

|}

{| class="wikitable" style="text-align:left;"
|+ style="caption-side:bottom; "|'''Table C:''' Tasks behind schedule at week 7.
|- style="vertical-align:top;"
! Task
! Planned completion
! Actual completion
|-
|- style="vertical-align:top;"
| '''C'''
| 66%
| 33%

|-
|- style="vertical-align:top;"
| '''D'''
| 100%
| 50%

|}

Now it is time from the project manager to analyze the situation and take a closer look at the '''Earned Value Variances'''('''Earned Value Indices''' and '''Earned Value Forecast''')

The project manager made some calculations which can be seen in ''table D''.,  interpretation of the outcomes of these calculations can be seen in table E and graphical representation in Figure B


{| class="wikitable" style="text-align:left;"
|+ style="caption-side:bottom; "|'''Table E:''' Project performance .
|- style="vertical-align:top;"
! Task
! Schedule Variance (SV)
! Cost Variance(CV)
! Schedule Performance Index(SPI)
! Cost Performance Index(CPI)
|-
|- style="vertical-align:top;"
| '''A'''
| Exactly on schedule
| Exactly On budget
| Exact amount of work performed that has been scheduled
| Exact amount of progress for the money spent

|-
|- style="vertical-align:top;"
| '''B'''
| Exactly on schedule
| Over budget
| Exact amount of work performed that has been scheduled
| Less progress for the money spent

|-
|- style="vertical-align:top;"
| '''C'''
| Behind on schedule
| Over budget
| 50% of work performed that has been scheduled
| Less progress for the money spent

|-
|- style="vertical-align:top;"
| '''D'''
| Behind on schedule
| Exactly on budget
| 50% of work performed that has been scheduled
| Exact amount of progress for the money spent

|-
|- style="vertical-align:top;"
| '''E'''
| -
| -
| -
| -

|}<ref name="example"></ref>
[[File:4a.png‎|350px|thumb|left|'''table D:''' ''Earned Value Variances'', ''Earned Value Indices'' .]]
[[File:5a.png‎|350px|thumb|right|'''Figure B:''' EVM plot.]]