Project metrics: earned value management with a 6-function calculator, part 2

Last time, we focused on how to get the basic project metrics without so much as a basic calculator. On the second part of this post, we’ll focus on estimates.

Estimates seem even trickier than variances and indexes. Because a lot of the original estimating process is fuzzy, it’s easy to assume figures like Estimate to Complete and Estimate at Completion would be hard to understand and hard to believe that – Gasp! – they can be computed with a pen and paper.

Just like last time, we’ll work with a  6-month fictional project with a 50 000$ budget. In order to compute Estimate to Complete and Estimate at Completion, we need the following figures:

  • Budget at Completion is your project’s total budget. This is (usually) decided when the project is approved
    • With our project example, the Budget at Completion is 50 000$.
  • Earned Value is how much you’ve really accomplished in the project.
    • Working with our 6-month project. Let’s pretend that you’re
      only 40% done with the project. That portion of your project budget is
      the Earned Value.
  • Actual Cost […]