## Summer reposts: Project metrics: earned value management with a 6-function calculator

Background on the posts

I wrote these two posts because I got tired of reading how complicated it was to compute project metrics. Project metrics are NOT complicated, itâ€™s simple math! So I thought if I wrote my understanding of those metrics, it might help some people.

It turns out these two posts are the most popular ones on the blog!

I hope you enjoy them đź™‚

### Project metrics: earned value management with a 6-function calculator

Project metrics have a bad reputation. Things like Earned Value andÂ Schedule Performance Index are presented as complex calculations thatÂ only experts can master.

Nothing could be further from the truth

Actually, most project metric calculations can be done by anyoneÂ with grade-school math skills. The challenge in project metricsÂ calculations is not in the formulas themselves, but in mixing projectÂ management concepts with mathematical operators.

Still, these concepts are basic to project management. Every good project manager should understand them.

These three are not really formulas. They are the three figuresÂ project metrics use to create all the other ones, like the CostÂ Performance Index [â€¦]

By |2009-08-05T12:51:00-04:002009-08-05|

## 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, weâ€™ll focus on estimates.

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

Just like last time, weâ€™ll work with aÂ  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 projectâ€™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 youâ€™ve really accomplished in the project.
• Working with our 6-month project. Letâ€™s pretend that youâ€™re
only 40% done with the project. That portion of your project budget is
the Earned Value.
• Actual Cost [â€¦]
By |2009-05-04T13:39:00-04:002009-05-04|
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