MS Project Advanced Topics - Earned Value and Reporting - 1

hi thanks for stopping by they were gonna talk about earned value management interpretation using Microsoft Project 2010 here I just created two simple tasks task a task B and set up those duration for those tasks also for earned value management implementation I'll need to resources societal into those tasks like crusade r1 and r2 and also I'll need hourly rates for those resources so next that me say one four hours for dollars per hour at five dollars per hour these numbers we'll come into the play while implementing current value management cost calculations cattle Baron's or course also to make it a little bit convenient for this session let me also make some changes to my interface we'll need this detail split but detailed form is of little use for this particular case for the lower part lower split will need tasks usage view narratives and earned value tables as you can see I have already activated my own value table here and we have three of those earned value it was like learnt value or values indicators earned value schedule indicators if you do not see those tables under your right click please go to more tables under more tables edit those three tables like this one and while editing those tables we have an option in your showing menu and make sure that this check box is turned on and as we can see here all my earned value numbers our zero this is simply because I didn't set up two things to remembers to remember while implementing value management in a math project our first setting baseline we need to set up a comparison point based on which adorn our next calculation our earned value calculation like schedule variance cost variance are based on and another thing for particularly for for schedule variance calculation for scheduled indicator calculations we'll need to set up the status date I'll turn back to the status late a little bit later guys but for now let me just set I go on and set up a baseline just please note that before setting the baseline I have already finished my planning I have already finished my project planning saying that okay task 1 task a has 1 iteration it requires 8 hours of work and it assigned to resource 1 and also I have already set the hourly rates for those resources next let me just set up the baseline and also please note that my baseline cost here under the earth value table here it is BAC many other places you perhaps will see this as a budget at complete while in Emma's project it is called baseline cost these are used interchangeably in project management world so what actually baseline setting does in Emma's project it simply said this BAC budgeted at complete or baseline cost number and later on all the earned value calculations like a cost variance cattle Baron's as I said are based on this baseline cost number so what Emma's project does we're setting baseline it simply adds it simply fills up this figure now it is zero and one is at the baseline it will become equal to estimated complete like $32 okay I have already set my baseline now we'll also see here that I have baseline for like eight hours in total for the task a zoom out here it is eight hours and based on work and later on will be used as basis for our value calculations now let me go back to my status date as I said and set up a status date but before that let's just go over these tasks and the project to understand what's going on there say for example I have tasks a with start date March 12 at 8 a.m. and let me just set my status dates so that they only one hour passed from my start date so I can say that it's now 8:00 a.m. only one hour passed from my status date or put it in different way I'm just telling the MS Project that okay only one all from my start date past and based that based on that one hour I should have already completed I should have offered the earned 104 and let's see what what happens okay here it is I have four dollars of planned value and this one our work comes from the exactly comes from the are ones hourly rate this resource r1 should have worked on this task for one hour in curing or earning $4 for test B it should be 5 there it is exactly because for our - I have the hourly rate five dollars there it is also that's a good idea to show the straightest 8 micron chart that'd be just line green-colored here it is my status date okay turning back to my own value calculation and schedule there are calculations let me just go back give such you here it is okay so we have one hour passed from our starting date and one hour earned value all the plants value I calculated under our earned data table let's go ahead and see say that for example this day already past the Working Day already finished 1,700 for task 1 we already have the antler value $32 on the run forever because we didn't work any hours or otherwise we didn't show we didn't log any hours within this actual Fork a month arrest project calculates as negative schedule variance so we planned a $32 value that should have been earned already but we didn't do any kind of fault so to fix this we can include a log hours here as it as it was initially plan planned and we'll get zero variance here it is four and four for our and by the way these are four hours shown based on the half days so four hours for the first half and another four hours for the second half for the Norse 12 and based on that the this we have zero schedule variance but let's move on and I'll let me try to let me show you another scenario so what would happen if I instead of planned eight hours I worked only say seven hours like four hours for the first half and only three hours for the second half this project will move one hour of world to the next day and also as we can see here the duration of task age as it was initially one day now it is increased and this increase exactly is one hour increase for the next day and just pay attention that earned value numbers also perhaps it will be different this is one of them three key parts in Microsoft Project and errant value calculations we would expect that this schedule variance be four dollars because we are missing only one hour of work which is equally equivalent to $4 of earned value but what's going on actually is because we already increased the duration of our work because before that my baseline duration was one day but now now I prolonged my situation I prolonged the duration for task a and new figure this 1.30 days of adoration came into the play and based on that new figure I have different with a different number for schedule variance and for the Earned value instead of having twenty eight dollars I have been four dollars for earned value number or so here we can see our cost variance figure which is also positive just turnout and this cost variance comes from the difference between between these two actual cost or actual cost of work performed and error value and here we can see that based on this situation we have positive cost variance

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Keywords: Project Managment, MS Project, Earned Value, Scheduling, Variance Analysis, Software, Management (Field Of Study), New, First, Microsoft Word (Software), Software (album), Project, Earned Value Management, Technology, Josh, New Project, Microsoft Project (Software), Guru, First Project, Data

Id: 2cdShptUZS8

Length: 12min 4sec (724 seconds)

Published: Wed Mar 13 2013