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|Faculty | Sushant Sharma |
SUSHANT SHARMA
Contents
Introduction-Proj ect Management
Project Scope Management
Work Breakdown Structure
Project Time Management
Gantt Chart
Cri ti cal Path Method &Floats
Precedence Network Analysi s
PERT (Program Evaluati on &Revi ew Technique)
Line of balance techni que
Time Crashing techni ques
Project Resource Management
Monitori ng & Control
- Earned Value Anal ysi s
SUSHANT SHARMA
Project Management
Defining Project It is the group of inter-related activities executed in a
coordinatedway to achieve the project objectives.
Defining Management It is the efficient use of resources in set of known
processes
Project Management -It is the application of skills, knowledge, tools &techniques
to Project activities through application and integration of Project Management
Process Groups.
Characteristics of a Project
1. It has a definite beginning&definite end.
2. It creates a unique Product
3. Progressive Elaboration- Managing to a greater level of detail as project
evolves. (continuously improving and detailing a plan as more detailed and
specific informationandmore accurateestimates becomes available)
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Project Objective /Project Constraints
What, when and how much?
Aproject objective has Six dimensions:
What is to be achieved (Scope)
When it is to be achieved by (Schedule), and
What achieving it will cost (Budget),
What are the specifications (Quality),
What are the risks involved(Risk),
What are the resources required (Resources)
If any constraint is subjected to change then impact on others shall be
evaluated.
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Project Stakeholders
Whois a Stakeholder?
All individuals, groups and organizations directly involved
in the project or that may be affected by the project
activities and the project outcome
keystakeholder(lmp. Stage) - project manager
keystakeholder(across PLC) - end user
Understanding stakeholder needs critical for project
success
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Project Stakeholders
Astakeholder couldbe:
Passively involved in the project
Actively involved in the project work and
project outcome
Negative about the project and opposedto it
A Stakeholder
can help or hinder the project
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Project Stakeholders
Key Stakeholders are:
Project Manager - is overall responsible to ensure project
meets it's goals and objectives
Project Sponsor - represents top management. Is
responsible to ensure funds available and to provide
overall, high level guidance to project
Team Members - performthe work. At core of success
Customer / Client - individual /group /organization that will
use the deliverables. Can have one or many
Performi ng organizati on - employs the people engaged
inproject work. Internal project or external project
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Project Definition Document and/or
Business Case
Project Plan
Project Schedule
Project Budget
Project Manual
Status Reports
Risk, Issue, and Change Logs
Updated Plans, Schedules, Budgets
Final Acceptance Document
Lessons Learned Document
Project Archives
Four Phase Project Lifecycle
Close Implement Plan Define
Propose a project to senior management
with a brief written document to establish a
shared understanding of the proposal before
writing a Plan, Schedule,
and Budget
Propose a project in more detail, and
outline a clear approach for executing the
project in a Plan, Schedule, and Budget
Do the work described in the Project Plan,
aligned with the Schedule and Budget
Shut down the project in a controlled
manner
Is this the right project?
What results should it achieve?
How will success be measured?
How will the project achieve its
objectives?
When will the project finish?
Who will do what?
What will it cost?
How will risks/issues be managed?
How is project work progressing?
What issues and risks does the project
face, and how should these be
managed?
How much is the project actually
costing?
Is the work of the project complete?
Did the project achieve its
results/outcomes?
What did the teamlearn that could
help other projects?
Where do project staff go next?
Understand stakeholder interests
and expectations
Establish a shared high-level
understanding of the proposed
project and its intended results
Thoroughly plan the project
activities, schedule, and resource
requirements
Provide more detailed information to
senior management for discussion and
approval
Mobilize the team to execute the
Project Plan
Control the execution of the Project
Plan
Communicate with stakeholders
Report project status
Update the Project Plan, Schedule,
Budget, and Business Case as needed
Demonstrate that the project is
complete
Assess the success of the project
Undertake administrative close-out
Transfer knowledge to the permanent
organization
Support departing staff
When your Project Definition Document
and/or Business Case are approved by
senior management, move to the Plan
Phase
When your Project Plan, Schedule, and
Budget are approved by senior management,
move to the Implement Phase
As project deliverables near completion,
move to the Close Phase
When this phase is complete, the project
is finished
Moving to the Next Phase
Key Purpose
Key Questions
Key Deliverables
Key Activities
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Project Management Processes
Initiating
Planning
Execution
Monitoring &Control
Closing
3 Important Project Management Functions:
Planning determine what needs to be done
Scheduling decide when to do activities
Controlling see that its done right
SUSHANT SHARMA
Knowledge Area
Project Management Process Groups
Initi ati ng Process
Group
Pl anning Process
Group
Executi ng Process
Group
Monitoring &
Controlling Process
Group
Closing Process
Group
1. Project Integration
Management
Develop Project Charter Develop Project
Management Plan
Direct and Manage
Project Execution
Monitor and Control
Project work
Perform Integrated
Change Control
Close Project of
Phase
2. ProjectScope Management Collect Requirements
DefineScope
Create WBS
VerifyScope
Control Scope
3. ProjectTime Management DefineActivities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
DevelopSchedule
Control Schedule
4. ProjectCost Management EstimateCosts
DetermineBudget
Control Costs
5. Project Quality Management PlanQuantity Perform Quality
Assurance
Perform Quality
Control
6. Project Human Resource
Management
Develop Human
Resource Plan
Acquire Project
Team
Develop Project
Team
Manage Project
Team
7. Project Communications
Management
IdentifyStakeholders PlanCommunications Distribute
information
Manage Stakeholder
Expectations
Report Performance
8. Project Risk Management Plan Risk Management
Identify Risks
Perform Qualitative Risk
Analysis
Perform Quantitative
Risk Analysis
Plan Risk Responses
Monitor and
Control Risks
9. Project Procurement
Management
PlanProcurements Conduct
Procurements
Administer
Procurement
Close Procurements
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PROJECT SCOPE MANAGEMENT
WORK BREAKDOWN
STRUCTURE
(From Huge Project to Manageable Tasks)
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Project Scope Management
Work Breakdown Structure
Tool for simplifyingproject objective
Tool for definingproject work (scope) in termof deliverables.
Decompositionof project components on basis of effort/ cost/ responsibility.
Different fromcontrol A/c.
Processes required ensuring that the project includes work required and only
the work required. It includes:
Collect Requirements
Define Scope
Create W.B.S
Verify W.B.S
Control W.B.S
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Task 1
Work Package 'X '
Activity 1
O peration 'P' O peration 'Q' O peration 'R'
Activity 2 Activity 3
Work Package 'Y '
Task 2 Task 3
Sub Project
A
Task 4 Task 5
Sub Project
B
Task 6 Task 7
Sub Project
C
Project
WBS Tree Structure
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Input Out put Table for WBS
Input Process Output
1. Project Scope Statement
2. O RGANIZARIO N
PRO CESS ASSETS
Policies & Procedures &
Templates for WBS.
1. Decomposition 1. WBS:
2. WBS Dictionary:
o Created by create WBS process
o Descriptions of work package & control accounts including:
a. Code of account identified
b. Description of work
c. Responsible organizations
d. Milestones
e. Associated schedule activities
f. Resources
g. Cost estimate
h. Quality requirement
i. Acceptation creation
j. Technical information
k. Contract information
3. Scope baseline components
o Project Scope Statement
o WBS
o WBS Dictionary
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No
Divide the project work scope in terms of
deliverables
Select a deliverable
Can adequate duration
estimate be determined for the
deliverable & can the work be
assigned to an Engineers/
Supervisors
Identify a constituent element using tangible &
verifiable outcome
Further divide the deliverable into work
packages & further into activity which can be
assigned to a Foreman and can be estimated
realistically
Does deliverables
accounts for 100%
scope & are all internal
external & project
management deliverable
has being included
Are all deliverables
accounted for ?
Draw WBS diagram
Communicate and take consent of stakeholders
No
No
Y es
Y es
Y es
Process of creati ng
a WBS
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Principles of WBS
1. The 100% Rule Proj ect Scope/Work Packages shall capture all the deli verabl es i nternal ,external
,interim in terms of works to be completed including proj ect Management.
2. The deli verabl es should be l ogical l y decomposed to the level that represents how they will be
produced (designed, purchased, subcontracted, and fabricated). The partiti oning of deli verabl es
from higher level with in the WBS to lower levels must be logically related.
3. Deli verabl es should be clearl y defi ned to eliminate dupli cation of effort within WBS elements,
across organizations, or between individuals responsible for completing the work.
4. Deli verabl es shoul d be li mi ted in size and definition for effecti ve control but not so small as to
make cost of control excessi ve and not so l arge as to make the item unmanageable or the ri sk
unacceptable.
5. The PM should structure the project work into WBS elements (work packages) that are:
Tangible - real objects that can be seen felt &sensed and are not imaginary, vague or elusive. Should be
definableandeasilyunderstoodbyproject participants.
Measurable canbe usedto measure progress in quantitativeterms usingstandardmeasurements.
Verifiable the specified measures should be verifiable by any agency at the time of delivery and
acceptance.
Manageable a meaningful unit of work where specific responsibility and authority can be assigned to a
responsibleindividual.
Estimatable duration can be estimated in time required to compete, and cost can be estimated in
resources requiredto complete.
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Independent minimuminterface with or dependence on other ongoing elements (i.e. assignable to a single
control account, andclearlydistinguishable fromother work packages).
Integratable integrates with other project work elements and with higher level cost estimates and schedules to
includethe entireproject.
Adoptable sufficiently flexible so the additions/ elimination of work scope can be readily accommodated in the
WBS.
6. Awork packageis a piecethat:
Canbe realisticallyandconfidentlyestimated
Cannot be logicallysubdividedfurther
Canbe completed quickly
Has a meaningful conclusionandis deliverable
Canbe completed without interruption(without the needfor more information) and
Will be outsourcedor contractedout.
There is a general 5% Rule that states that all and any Work Package should be about 5% of Project
duration.
SUSHANT SHARMA
PO WER
PLANT
MISCELLANEO US
STRUCTURES
WATER SY STEM
CO NTRO L RO O M
BULDG
RO AD S
DRAINS
SEWERAGE
SY STEM
WATCH TO WER
PIPE CABLE
AND SUPPO RT
GALLERIES
SERVICE
BUILDING
CHIMNEY
TRANSFO RME
R Y ARD
FIRE
PRO TECTIO N
SY STEM
BO O STER PUMP
HO USE
FO AM PUMP
HO USE
STO RAGE TANK
DELGE VALVE
HO USING
HO SE HO USE
FIRE WATER
PUMP HO USE
CO O LING
WATER
SY STEM
CW DUCT
CW
CHANNELS
CW PUMP
HO USE
RAW WATER
PUMP
HO USE
INTAKE
STRUCTURE
ESP AREA
ESP
FO UNDATIO N
CO NTRO L
RO O M
SWITGEAR
RO O M
FUEL O IL UNIT
FO PUMP
HO USE
FO
PRESSURIN
G PUMP
FO TANK
UNLO ADING
TRENCH/PIT
O IL
SEPERATO R
PIT
MAIN
PO WER
HO USE
BUILDING
TURBINE
GENERATO R
BO ILER
FEED PUMP
CO NDENCE
R
DEMINERALIS
ED CO O LING
WATER UNIT
AUX ILARY
CO O LING
WATER
PUMP
HO USE
AIR WASHER
BUILDING
DIESEL
GENERATO R
SET
BUILDING
CPU
SERVICE
VESSEL
MACHINE
RO O M
CHP
MAINTANEN
CE BUILDING
REMO TE I/0
RO O M
BO ILER AREA
FD FAN
PA FANS
MILL
BUNKER
BO ILER
FO UNDATIO
N
BO TTAMASH
HO PPER
MACHINE
RO O M
PERMANENT
STO RE
PERMANENT
STO RE
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Gantt-charts
Gantt-charts/Bar charts can be considered as
tools for portraying a project plan.
Gantt-Chart indicates the general sequence of
work tasks
It is an effective visual device showing the period
of commencement and duration of work in time
units of Days, Weeks or Months of a Y ear.
It indicates the status of progress as per the
schedule.
Left side of the Gantt- chart contains the sheet
viewand the right side the bar graph along a time
scale.
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Gantt Chart
Foundation
Framing
Plumbing
Electrical
Siding
Wall Board
Paint Interior
Paint Exterior
Fixtures
Activity
Start 5 10 15 20 25 30 35 40 45 50
Days After Start
Days After Start
Start 5 10 15 20 25 30 35 40 45 50
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Scheduling
A schedule is a conversion of a project action plan into an
operating timetable. In other words it shows the timing of
work elements and denote when specific events and
milestones take place.
As such it serves as the basis for allocation of resources,
cost estimation and project performance and thus the basis
of monitoring and controllingproject activity. Taken together
with plan and budget, it probably is the major tool for
management of projects.
ActivityBased Scheduling(Critical Path)
LocationBased Scheduling(Line of Balance)
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Schematic display of the logical relationships of
project activities. Also referredto as a PERT chart..
Time
Correct sequence of activities and events.
Graphical portrayal of activities and event
Shows dependency relationships between tasks/activities
ina project
Clearly shows tasks that must precede (precedence) or
follow(succeeding) other tasks in a logical manner
Clear representation of plan a powerful tool for planning
and controllingproject.
NETWORK
SUSHANT SHARMA
Example of Simple Network
Survey
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Example of Network
More Complex
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DEFINITION OF TERMS IN A NETWORK
Activity : : It represents the actual work planned as process
of doing something. any portions of project (tasks)
which required by project, uses up resource and
consumes time may involve labor, paper work,
contractual negotiations, machinery
operations Activity on Arrow (AO A) showed as
arrow, AO N Activityon Node
Event : beginningor endingpoints of one or more
activities, instantaneous point in time, also called
nodes
Network : Combinationof all project activities andthe events
ACTIVITY
PRECEEDING
SUCCESSOR
EVENT
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Emphasis on Logic in Network Construction
Construction of network should be based on logical or technical
dependencies among activities
Example - before activity Approve Drawing can be started the
activity Prepare Drawing must be completed
Common error build network on the basis of time logic (a feeling for
proper sequence ) see example below
WRONG !!!
CORRECT
SUSHANT SHARMA
Example 1- A simple network
Consider the list of four activities for making a simple product:
Activity Description Immedi ate
predecessors
A Buy Plastic Body -
B Design Component -
C Make Component B
D Assemble product A,C
Immediate predecessors for a particular activity are the activities
that, when completed, enable the start of the activityin question.
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Sequence of activities
Can start work on activities A and B anytime, since
neither of these activities depends upon the
completionof prior activities.
Activity C cannot be started until activity B has been
completed
Activity D cannot be started until both activities A and
C have beencompleted.
The graphical representation (next slide) is referred to
as the PERT/CPMnetwork
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Network of Four Activities
1 3 4
2
A
B
C
D
Arcs indicate project activities
Nodes correspond to the beginning
and ending of activities
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Example 2
Develop the network for a project with following activities and
immediate predecessors:
Activity Immediate
predecessors
A -
B -
C B
D A, C
E C
F C
G D,E,F
Try to do for the first five (A,B,C,D,E) activities
SUSHANT SHARMA
Network of first five activities
1 3 4
2
A
B
C
D
5
E
We need to introduce
a dummy activity
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Note how the network correctly identifies D, E, and F as the
immediate predecessors for activity G.
Dummy activities is used to identify precedence relationships
correctly and to eliminate possible confusion of two or more
activities having the same starting and ending nodes
Dummy activities have no resources (time, labor, machinery, etc)
purpose is to PRESERVE LO GIC of the network
Network of Seven Activities
1 3 4
2
A
B
C
D
5
E
7
6
F
G
dummy
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EXAMPLES OF THE USE OF DUMMY ACTIVITY
Dummy
RIGHT
1
1
2
Activity c not
required for e
a
b
c
d
e
a
b
c
d
e
WRONG
!!!
RIGHT
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J F M A
Time
R
s
.
R
e
s
o
u
r
c
e
s
400
300
200
100
Time Now
BCWS
(Planned
Value)
Unfavorable Schedule Performance
M J J
A
Schedule Slip
Schedule
Variance
Prog
Budget
BCWP
(Earned
Value)
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Cost O verruns
Problem indicators
Early, large, unfavorable schedule variance
Time is money
Unfavorable cost variance
Front-loaded baseline
Zero variance
Too good to be true
Excessive resource consumption
Cant get there from here
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To perform EVM, three values need
to be determined
Planned Value (PV or BCWS)
Actual Costs (AC or ACWP)
Earned Value (EV or BCWP)
Earned Value Management
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Planned Value (PV)
What are the budgeted costs of the work
scheduled? Time phased based on baseline budget
Only changes when baseline is changed
Also referred as BCWS & BAC
How much do you expect to have done at completion ? How much do you expect to have done at completion ?
How much should you have done at point X ? How much should you have done at point X ?
Earned Value Management
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Earned Value Management
Actual Costs (AC)
What are the actual costs of the work
performed?
Based on the actual completion of work packages
Actual costs for reported work
Also referred as ACWP
The dollar amount actually spent to date. The dollar amount actually spent to date.
Has no relationship to work accomplished Has no relationship to work accomplished
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Earned Value Management
Earned Value (EV)
What are the budgeted costs of the
work performed? Based on the actual
completion of work packages
Baseline value of the reported work
Also referred as BCWP
How much have you actually gotten done as of How much have you actually gotten done as of
Today Today ??
Work accomplished, not money spent. Work accomplished, not money spent.
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Calculating Earned Value and
interpreting results
to measure the progress of the project
help identify trends
forecast costs
and identify ways to correct/mitigate
project pitfalls.
Earned Value Management
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Cost Variance (CV)
CV = EV - AC
Good News: If CV value is positive, the project is currentl y
under budget (spending less than planned for the work)
Bad News: If CV value is negative, the project is currently over
budget (spending more than planned for the work)
Earned Value Management
SUSHANT SHARMA
Earned Value Management
Cost Performance Index
(CPI)
CPI = EV / AC
Good News: If CPI value is >1 or =1, the project cost trend is
currently under or at planned budget
Bad News: If CPI value <1, the project cost trend is currently
over budget
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Earned Value Management
Cost Variance % (CV%)
CV% = CV / EV
Good News: If CV% value is positive, the project is currently
under budget by the CV%
Bad News: If CV% value is negative, the project is currently
over budget by the CV%
SUSHANT SHARMA
Earned Value Management
Schedule Variance (SV)
SV = EV - PV
Good News*: If SV value is positive, the
project is currentl y ahead of schedule
Bad News: If SV value is negative, the
project is currently behind schedule
* - not all positive SVs are good
SUSHANT SHARMA
Earned Value Management
Schedule Performance
Index (SPI)
SPI = EV / PV
Good News: If SPI value is >1 or =1, the project schedule trend
is currently ahead or on planned schedule
Bad News: If SPI value <1, the project schedule trend is
currently behind schedule
SUSHANT SHARMA
Earned Value Management
Schedule Variance % (SV%)
SV% = SV / PV
Good News: If SV value is positive, the
project is currentl y ahead of schedule
Bad News: If SV value is negative, the
project is currently behind schedule
SUSHANT SHARMA
Earned Value Management
Estimate at Completion
(EAC)
#1
Actual costs to date plus a new estimate for all remaining work
(original plan no longer valid)
EAC = AC + ETC
(ETC Estimate to Complete)
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Earned Value Management
Actual costs to date plus remaini ng budget
(current variances are viewed as atypical
of future variances)
EAC = AC + BAC - EV
Estimate at Completion
(EAC)
#2
SUSHANT SHARMA
Earned Value Management
Estimate at Completion
(EAC)
#3 & #4
Actual costs to date plus remaining budget modified by a
performance factor (CPI) (current variances are viewed as typical of
future variances).
EAC = AC + [(BAC - EV) / CPI]
EAC = BAC / CPI
SUSHANT SHARMA
(June2012 )Example 1 :Activity details of a Construction Projects are as below
Activity Duration
(weeks)
Budgeted
Cost (Rs in
Lacs)
Preceding
Activity
Scheduled
Start Time
(end of week)
Scheduled
Finish Time
(end of week)
A 4 20 - 0 4
B 5 10 A 4 9
C 8 16 A 4 12
D 5 25 B 9 14
E 4 8 B,C 12 16
F 3 12 B,C 12 15
G 4 12 D 14 18
H 4 6 E 16 20
ACTUAL STATUS BY THE END OF 10
TH
WEEK IS AS UNDER
Activity % complete Actual
Expenditure
(Rs in Lacs)
A 4 22
B 5 9
C 8 12
D 5 10
E 4 0
F 3 0
G 4 0
H 4 0
SUSHANT SHARMA
Determine :
(i) Earned Value
(ii) Cost &Schedule vari ances
(iii) CPI&SPI
(iv) Projected cost overrun and time overrun till project completion
Act
i vi t
y
BAC Planne
d %
compl
ete
Sched
uled
Ti me
of
Compl
etion -
STC
Actual
%
compl
ete
Actual
Expendi
ture (Rs
in Lacs)
BCWS/PV=
Planned %
complete X
BC
EV/BCWP=
Actual %
complete X
BC
Sche
dule
Vari a
nce
SV=
BCW
P-
BCW
S
Cost
Vari an
ce CV=
BCWP-
ACWP
CPI
=
EV/
AC
SPI=
EV/P
V
EAC=
BAC/
CPI
Cost
Overrun =
BAC-EAC
Ti me
Overrun
ETC=STC/S
PI
A 20 100 4 100 22 20 20 0 -2 0.9
1
1 21.97 1.97 4
B 10 100 5 100 9 10 10 0 1 1.1
1
1 9 -1 5
C 16 83.33 8 60 12 13.33 9.6 -3.76 2.4 0.8 0.72 20 4 11.11
D 25 71.4 5 40 10 28.56 10 -
18.56
0 1 0.35 25 0 14.28
E 8 62.5 4 0 0 5 0 -5 - - - 8 0 4
F 12 66.7 3 0 0 8 0 -8 - - - 12 0 3
G 12 55.55 4 0 0 6.66 0 -6.66 - - - 12 0 4
H 6 50 4 0 0 3 0 -3 - - - 6 0 4
Tot
al
49.6 Lacs 44.98
Lacs
1.4
Lacs
113.9
7
4.97Lacs 7 days
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Value of Earned Value
Schedule Status Reporting
Cost Status Reporting
Forecast Costs
EV Integrates Cost, Scope &
Schedule objectives when
appropriately implemented
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Shortcomings of Earned Value
Quantifying/measuring work progress
can be difficult.
Time required for data measurement,
input, and manipulation can be
considerable.
SUSHANT SHARMA