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Cummulative vs Monthly Data for EVM

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  • #26393

    boettler
    Member

    I am tasked with setting control limits for my organiztion for earned value management (EVM).  I have the calculation for the data, but I not sure if I should be calculating the limits using cummulative data or monthly data.  I would think monthly data would be more appropriate to show the true variation in the EVM process. Please advise….
    Rob

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    #64146

    dsim
    Participant

    EVM is a method of monitoring the progress of a project.
    Theory says that SPI and CPI  are calculated every monitoring period by calculating the total costs from the begining of a project up to this period.
    Lets give an example:
    Using your real data you calculate for period 1 an SPI of 0,9. Then in period 2 you have “good results” for this period and you calculate an SPI only for this period of 1,0. But by calculating period 2 cumulatively you still have an SPI of 0,9xx.
    In the case of  isolated periods you would have a nice diagram with points 0,9 and 1,0. In the case of cumulative calculations you would have two points under 1,0 which sows you that you still have to take corrective actions for your schedule.
    Based on the above my advise is to calculate cumulative costs and then calculate the above indexes. Only with this way you will have real representation of the situation.

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