SPI and CPI

[bpomykala]

Hello, I would like to do EVM on a Project. Could you recommend a
good tutorial or high level overview to use in order to generate a CPI
and SPI ? or if possible, let me know the required fields in order to
let Project calculate it.

Thanks

 

[Jim Aksel]

Hello, Project will automatically caculate EV parameters including SPI & CPI
if you have a proper basline. To baseline a project, make certain tasks have
appropriate resources assigned, costs are listed in the resource sheet for
those resources.

Baselines can be established on Tools/Tracking/Set Baseline (or Save
Baseline).
The appropriate fields are BCWS, BCWP, ACWP. You will need a method to
appropriately create actual cost data --- project can do it or it can be done
manually.

For good information on EVMS, please see the following link:
http://www.ntsc.navy.mil/resources/library/acqguide/evm.htm
http://www.niwotridge.com/PDFs/EVMSCookies.PDF
http://guidebook.dcma.mil/39/instructions.htm

The middle link is a good intro. I have plenty of other material if you
need it.

FYI - use the help system in MS Project --- search on Earned Value. What
comes up is pretty good.

This link will open a page concerning an EVMS Gold Card --- on that page
will be a link to a PowerPoint slide. The slide is one page and gives all
the formulas you will ever need to know about EVMS.

https://acc.dau.mil/CommunityBrowser.aspx?id=19577

EVM takes a long time to master, patience.

If you found this post helpful, please rate it.

 

[bpomykala]

Will Project calculate CPI and SPI if I enter the "fixed cost' for all
my activities, baseline the project and update the plan accordingly
with percent complete?

Thx.

 

[Jim Aksel]

Yes. However, CPI will always be 1.0 if you are not careful.
To work around that:
Select Tools/Options, pull the calculations tab.
UNcheck the box "Actual costs are always calculated by Microsoft Office
Project"
check the box "Edits to total actual cost will be spread to the status date"
Default fixed costs accrual - select what is meaningful, probably prorated.

Now, when you baseline the project you can use %Complete for calculations of
SPI & CPI.
CPI will always be 1.0 .... unless you enter a different value in the
[Actual Cost] column.
Examples: A purchased item was less expensive than your baseline fixed
cost, or, a resource more expensive than your baseline bid was used on the
poject.
Use of fixed costs (CPI=1 always) is not a bad way to go if you have a fixed
price subcontracted effort for a task.

So, enter your fixed cost in the Fixed Cost Column -- if things run
differently, override that value with an entry in the [Actual Cost] column.

Hope that helps, if so please consider rating this response.

Jim

 

[Jim Aksel]

After reading my post, I feel I need to be more clear on CPI.
If Microsoft Project does not calculate actuals, you will *always* have to
enter an actual cost --
if it is different from BCWP, you can enter a different value.
Otherwise, you will need to key in the same value Actual Cost as appears in
BCWP
This means you are always performing (cost wise) as you planned.

Leaving the setting for MS Project to calculate ACWP by itself produces
CPI=1.0

Yes. However, CPI will always be 1.0 if you are not careful.
To work around that:
Select Tools/Options, pull the calculations tab.
UNcheck the box "Actual costs are always calculated by Microsoft Office
Project"
check the box "Edits to total actual cost will be spread to the status date"
Default fixed costs accrual - select what is meaningful, probably prorated.

Now, when you baseline the project you can use %Complete for calculations of
SPI & CPI.
CPI will always be 1.0 .... unless you enter a different value in the
[Actual Cost] column.
Examples: A purchased item was less expensive than your baseline fixed
cost, or, a resource more expensive than your baseline bid was used on the
poject.
Use of fixed costs (CPI=1 always) is not a bad way to go if you have a fixed
price subcontracted effort for a task.

So, enter your fixed cost in the Fixed Cost Column -- if things run
differently, override that value with an entry in the [Actual Cost] column.

Hope that helps, if so please consider rating this response.

Jim

Will Project calculate CPI and SPI if I enter the "fixed cost' for all
my activities, baseline the project and update the plan accordingly
with percent complete?

Thx.