Sunday, April 7, 2013

W18_Reginald Nwachukwu_Implementing Earned Value Using MS Project 2007

1. Problem Definition or Opportunity Statement:

To implement and use Earned Value technique on the construction of 27m length precast box culvert.

To convey final approval for commence of works, it is required to develop a Performance Measurement Baseline (PMB) to integrate project scope of work, schedule and cost. The intent is to use the PMB to monitor, measure and report work progress, performance and variances. This is to help the project team watch trends, make forecast and calculate completion dates.

2. Development of Feasible Alternatives:

The various alternatives that can be readily be developed is to list and prioritize the various commercial software tools that are available for use. To do this, below is a list of commercial software that can be used to implement Earned Value technique:

List of Commercial Software that be use to implement Earned Value
(i) MS Project 2007
(ii) MS Excel 2007
(ii) Primevera P6

3. Development of Outcome for Each Alternative:

Each alternative tool can easily be deployed and use to implement earned value. The focus here is to reduce the overall time/cost required to construct and implement EVMS system that can be use on the project. Excel would require much time as much as P6 Primevera software tools. MS Project is familar to most schedulers and can easily be used to deploy earned value on a single or multiple project.

Table 1. Activity List and Resources Avaliable

Table 2  Standard Wage Rate for Labor from Historic Data

Table 3 Earned Value on Resources - Labor (Work Hour)

Table 4 Status

Table 5 Basic Earned Value Dashboard

4. Selection of Acceptable Criteria:

Recognizing the fact that Earned Value Management System can be implemented fully using any of the alternatives; the basis for selecting any of the alternatives include:

(i) Availability of Software tool
(ii) Installation Cost 
(iii) Familiarity to Schedulers/Planners

5. Analysis and Comparison of Each Alternative:

With particular reference to the Table 1 - 5 above; MS Project 2007 was used to implement earned value technique for the construction of Precast Box Culvert. The results are those basic metrics that can be use by project team to measure and report work progress, performance, variances, trending and forecasting of completion dates. The ease of implementation of Earned Value technique using MS Project 2007 is one that makes its a valuable tool in the hands of most scheduler.

6. Selection of Preferred Alternative:

MS Project 2007 is the preferred alternative, since it readily avalaible, cost of installation is relatively cheap and is most familiar to Project planners and schedulers.

7. Evaluation of Results and Performance Reporting:

Evaluation of results obtained from implementation of EV using MS  Project 2007 can be checked by comparing the output with manual /hand calculation of earned value for each work package. With this hand calculations the performance of the Earned Value system using MS Project 2007 can be reported.


1. AACE International (2012) Skills and Knowledge of Cost Engineering (5th Edition Revised) pp. 14.1 -14.6 AACE International Morgantown W.V. 

2. Brassard, M. & Ritter, D.(2010). The Memory Jogger 2: Tools for Continuous Improvement and Effective Planning, pp.92-95

3. Humphreys G.C. (2002) Project Management Using Earned Value (2nd Edition) pp.545-558 Orange CA Humphreys & Associates

1 comment:

  1. BE CAREFUL Reginald!!!!

    There is no one I know of who is happy with the EV data generated by MSP.

    At least in P6, you can set the autocost rules so you know which algorithms the software is using. With MSP, you don't exactly know what they are and it is VERY difficult to dig through the literature to find out which rules apply and when they apply.

    Bottom Line- Ocham's Razor says that faced with more than one option, with no clear "winner" or "best" option, pick the simplest one.

    If this were my project, I would be using Excel....

    See you next week.....

    Dr. PDG, Jakarta