Earned Value: Fun with Numbers or Real Management Data – Answers (part 2)

by Humphreys & Associates | February 28, 2014 6:57 pm

This is the second in a two part article on Earned Value: Fun with Numbers Part 1 / Answers

Answers: Earned Value terms used in the context of this article

Earned Value: Fun with numbers pt 2

Management Reserve

Correct Answer: N

Schedule Variance

Correct Answer: G

–      The resulting answer will identify the schedule position on the program, a negative answer indicates a behind schedule condition some or all of the program tasks. A positive result indicates an ahead of schedule condition for some or all of the program tasks.
–      Always use this information to supplement the Program Schedule tools data which uses actual days/week/months to identify the programs schedule position.

Budget At Completion

Correct Answer: D

Contract Budget Base/Contract Target Cost

Correct Answer:M

Budgeted Cost for Work Scheduled

Correct Answer:A

Schedule Slip

Correct Answer: J

 Variance At Completion

Correct Answer: I

Estimate At Completion

Correct Answer: F

Actual Cost of Work Performed

Correct Answer: B

Estimate To Complete

Correct Answer: E

Cost Variance

Correct Answer: H

Program Overrun

Correct Answer: O

Time Now

Correct Answer: L

Budgeted Cost for Work Performed

Correct Answer: C

Forecasted Program Schedule Slip

Correct Answer: K

Estimated Completion Date

Correct Answer: P

Discussion of the displayed data

The Program began in January, the Time Now (L) is June or approximately 6 months into the effort. There are unfavorable Schedule (G) and Cost (H) Variances. The program was planned (BCWS-A) to complete in March. The Current Estimated Completion Date–ECD (P) is June which indicates a 3 month Forecasted Program Schedule Slip (K). The Budget At Completion (D) Was about $39M (including Management Reserve –MR (N), the Estimate At Completion–EAC (F) is about $56M resulting in a Program Overrun (O) of  $17M.

As you can see, selecting key measurement data metrics empowers the program manager with the information to estimate the impacts of early trends in the program. Using the data from analytical tools such as “EMPOWER” allows the program manager to evaluate the current status and develop corrective action and mitigation plans to help minimize the impacts to the overall contract and keep all customers aware of possible outcomes.

We hope you found this two part article on Earned Value: Fun with Numbers useful. Feel free to share or call Humphrey’s & Associates for more information. 

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