Earn value management is all about managing your project’s budget and measuring the project performance against that budget. EVM helps you to identify whether your project was on time and under your budget. In this article, you cane easily download template in excel for multiple and single project plan.
You can easily manage project progress through earned value analysis template.
According to PMI, In construction, where planning and scheduling is very tough task, this type of template ease project planning and documentation.
An Earned Value Analysis (EVA) template is a valuable tool used in project management to measure the progress and performance of a project. It provides a systematic approach to tracking and evaluating the actual work completed against the planned work, allowing project managers to gain insights into the project’s efficiency, cost effectiveness, and schedule adherence.
The EVA template consists of various key components, including the planned value (PV), earned value (EV), actual cost (AC), and the budget at completion (BAC). The PV represents the planned cost of the work scheduled to be completed at a specific point in time, while the EV indicates the value of the work actually accomplished. The AC represents the actual costs incurred in completing the work, and the BAC is the total budget allocated for the project.
What is Earned Value Analysis Template?
The main purpose of Earned Value Analysis Template is to calculate cost in such a way that it takes into account the schedule of the process. It is extremely important when the company isn’t spending money continuously.
- Download cost management plan template before earned value analysis
Core concepts of Earned Value Management:
Earn Value Management can be a very scary process for certain project managers; hence we are breaking it down into smaller, easily graspable concepts. Each concept plays a vital role in increasing the performance of your project.
Planned Value:
The initial budgeted cost of the scheduled work is the planned value of the project. This planned value can vary as the scope or requirements of the project change, and where in the project schedule you are.
Planned value is the baseline with which you are going to compare other values with. When you are creating the project schedule, you can assign a total budgeted cost for each task.
Actual Cost:
The actual cost is the actual amount of money you have spent on the work done. It can include: labour, resources, material etc. In a robust project the actual cost is pretty straight forward. The actual cost doesn’t necessarily tell you how much work has been done so far, yet it is a very critical figure in the report.
Earned Value:
This is the budgeted cost for the work that has been completed or you can also call it the value of the work that has been completed. The project manager has to define rules to assign the value. In the EVM template the completed percentage is multiplied by total budgeted cost for each task to get the Earned Value.
Categories of Earned Value Analysis Template:
Organization and Scope of Project:
The part of the project is defined first of all by requirement gathering and scope definition. As per definition it is recommended to create following three documents:
- Work break down structure
- Organization Breakdown Structure
- Responsibility Assignment Matrix
Planning, Scheduling, and Budgeting:
The project baseline is defined in concrete in the guidelines presented in this principle. In future, the project will be monitored and controlled against this baseline.
Planning can be kicked off on the basis of WBS. It is ensured that various activities are grouped under a single work package and various work packages are grouped under a common account. Every account will have an account manager, so he can keep track of all the progress.
Related Article: Project Plan Outline
Then the Scheduling is done that is assigning clear due dates to all the tasks in a WBS.
Then comes the schedule based budgeting. Each scheduled task is assigned a budgeted cost. The cost that is supposed to be spent on that part of the task. This cost includes, subcontracting, labour, material, resources etc. We also assign progress evaluation methods for each task in a work package, so a total Earned value can be calculated at the end of each work package.
Accounting for Actual Costs:
There is a whole set of guidelines for cost calculation of a project, but this activity purely focuses on the cost calculation of work packages, because it is very important to know the cost of small work packages, sometimes it is possible that you have to pay the actual cost a few months after. So, you add up the cost of small work packages to estimate the actual cost.
Analyzing and Reporting on Project Performance:
All the calculations and figures related to cost are very clearly defined above, but this phase is carried out to present those figures in such a way that the seniors and the managers and stake holders can see the project progress by those figures. It also concentrates the corrective measure needed to take if the progress is not as per the performance baseline.
Revisions and Data Maintenance:
There can always be variance in the actual estimated performance base line and the actual work at hand, specially, when some big issues are discovered in the middle of working, but we cannot keep altering the baseline at every small change in cost or schedule. There needs to be some authorized change to update the baseline e.g. a visible change is scope, inflation, addition of some new tasks.
Earned Value Management Template in Excel:
For creating earned value management template in excel, you must have MS Excel version up to 2013. Templates include graphical charts and templates, which helps you in project management and project documentation.
For more information about earned value analysis, contact PMPDOCUMENTS.COM