This topic describes each of the Earned Value Methods (EVMs) available in MPM. You must specify an EVM if you want MPM to calculate Budgeted Cost of Work Performed (BCWP). The EVMs described are:
You can select an EVM from the list above, or scroll through this topic to see descriptions for all the EVMs.
No earned value computation is required. Use this option only when you want to display milestones on the Gantt chart but EVM does not apply to the WBS element. When you select this EVM, the BCWP Base defaults to Total Dollars and cannot be changed without first changing the EVM.
There are four different % Start / % Complete EVMs available. They are usually applied to work packages with a duration of not more than two accounting months. The methods earn the specified start percentage when the activity begins, and the specified complete percentage when the activity is completed. The four methods are:
0/100 (This EVM is used for work packages planned to start and complete in one accounting month. When you select EVM 0/100, the BCWP Base defaults to Total Dollars and cannot be changed unless you first select a different EVM.)
25/75
40/60
50/50
Lets you manually enter a cumulative percentage for the WBS element. Budget value is earned based on the percent complete as determined by you. The percent complete is applied to the Budget at Complete (BAC) to determine BCWP.
Monthly budget value is earned with the passage of time and is equal to the monthly scheduled amount (BCWP=BCWS). This method usually is used for accounts that are more time related than task oriented. Usually there is no measurable output related to these accounts. When you select this EVM, the BCWP Base defaults to Total Dollars and cannot be changed without first changing the EVM.
Earned standards (standard cumulative hours complete) is used to determine earned value for tasks whose budget value was derived using standard hours. To use this method, you must establish standards for all tasks using historical data, time and motion studies, and other statistical information. This method is used often for high-volume production environments.
Before you select Earned Standards as the EVM, you must first select Standard Hours as the Estimate Type when estimating the WBS baseline. When you select Earned Standards, MPM sets the BCWP Base field to Hours. You cannot change this setting without first changing the EVM.
Budget value is earned based on the proportional weight you assign to each milestone. The BCWP calculation used with this method is BAC (Milestone weight/Total Milestone weights). For information on assigning weights, see Entering Weights.
Select this option when you will be entering BCWP (Budgeted Cost of Work Performed) as a cumulative lump sum. When you status the WBS element, you enter cumulative BCWP in whatever base you selected. MPM calculates the percent complete by dividing the cumulative BCWP by the BAC (Budget at Completion).
The Apportioned EVM is used to calculate earned value for tasks that are related in direct proportion to some other work package. Apportioned Effort is also referred to as Factored Effort and Factored Method.
When you select this EVM, you must also select a Base WBS that will be used to determine the percent complete for the WBS element. Percent complete for an apportioned effort task is always equal to the percent complete of its Base WBS.
This EVM is the same as Milestone Weights except you can enter a percent complete for each individual milestone instead of just the WBS element. You can also have MPM calculate the weights by using the Autoweight option under the Tools menu.
The Key Event EVM is a variation on Level of Effort (LOE). A work package earns budget as long as milestones are completed on time. Additional value is earned when milestones are completed ahead of schedule. When you select EVM Key Event, the BCWP Base defaults to Total Dollars and cannot be changed unless you first select a different EVM.
When you use the Key Event EVM:
The work package must have at least one milestone in order to earn BCWP.
If a month has more than one milestone, all milestones must be completed to earn BCWP.
No BCWP is earned for any months between two incomplete milestones.
Milestones do not have to be completed in chronological order to acquire earned value.
For example, you might have a work package that begins January 1 and ends May 31, with milestones in February, April, and May. You could earn value for the April milestone by completing it in March, even though you didn't complete the February milestone. If this happened, earned value would be LOE for January and March, plus BCWP for April.