522 Chapter 13 Progress and Performance Measurement and Evaluation
LO A13.1-1
Apply pseudo-earned
Appendix 13.1
The Application of Additional Earned Value Rules
LEARNING OBJECTIVES
After reading this appendix you should be able to:
A13.1-1 Apply pseudo-earned value rules to measure progress on a project.
The following example and exercises are designed to provide practice in applying the
following three earned value rules:
value rules to measure
progress on a project.
•
Percent complete rule
•
50/50 rule
0/100 rule
See the chapter for an explanation of each of these rules.
Simplifying Assumptions
The same simplifying assumptions used for the chapter example and exercises will
also be used here.
1. Assume each cost account has only one work package, and each cost account will
be represented as an activity on the network.
2. The project network early start times will serve as the basis for assigning the
baseline values.
3. Except when the 0/100 rule or 50/50 rule is used, baseline values will be assigned
linearly, unless stated differently. (Note: In practice, estimated costs should be
applied "exactly" as they are expected to occur so measures of schedule and cost
performance are useful and reliable.)
4. For purposes of demonstrating the examples, from the moment work on an activ-
ity begins, some actual costs will be incurred each period until the activity is
completed.
5. When the 0/100 rule is used, the total cost for the activity is placed in the baseline
on the early finish date.
6. When the 50/50 rule is used, 50 percent of the total cost is placed in the baseline on
the early start date and 50 percent on the early finish date.
Appendix Exercises
1. Given the information provided for development of a product warranty project
for periods 1 through 7, compute the SV, CV, SPI, and CPI for each period.
Figure A13.1-1A presents the project network. Figure A13.1-1B presents the proj-
ect baseline, noting those activities using the 0/100 (rule 3) and 50/50 (rule 2) rules.
For example, activity 1 uses rule 3, the 0/100 rule. Although the early start time is
period 0, the budget is not placed in the time-phased baseline until period 2 when
the activity is planned to be finished (EF). This same procedure has been used
to assign costs for activities 2 and 7. Activities 2 and 7 use the 50/50 rule. Thus,
50 percent of the budget for each activity is assigned on its respective early start FIGURE A13.1-1A
FIGURE A13.1-1B
Chapter 13 Progress and Performance Measurement and Evaluation 523
date (time period 2 for activity 2 and period 11 for activity 7) and 50 percent for
their respective finish dates. Remember, when assigning earned value as the project
is being implemented, if an activity actually starts early or late, the earned values
must shift with the actual times. For example, if activity 7 actually starts in period
12 rather than 11, the 50 percent is not earned until period 12.
Plot the EV and the AC on the PV graph provided (Figure A13.1-1D). Use
Figure A13.1-1C. to plot the CPI, PI, and PCIB. Explain to the owner your assess-
ment of the project at the end of period 7 and the future expected status of the
project at completion.
2 2 5
6 6
8
3
11
11 7
14
о
1
2
2
3
7
7
5 11
o
0
0
0
0
0
0
0
11 3
14
0
2
2
2
5
7
7
4
11
Legend
2
4
6
6 68
ES ID EF
1
1
3
3
SL
SL
3
4
7
9
2
11
LS DUR LF
Schedule information
Baseline budget needs
Time period
EV ACT/
Rule WP
DUR ES LF SL
Total
PV
1
2 3
4
5678
9
10
11
12 13 14
③1
(2
1 4
4
сл
0
2354
23
2
0
6
9
Rule
9
2 6
(2
7
3
22276F
11
6
20
10
10
7 0 30
10
96663
1 = %complete
2 = 50/50
3=0/100
7 1 20
8 25 5
11 016
4 4 4
4
11
11
3 18
9 9
11 14 08
4
4
Total PV by period 0 6 27 8 21 11 12 13 4 4 4 404
Cumulative PV by period
0
6 33 41 62 73 85 98 102 106 110 114 114 118 524 Chapter 13 Progress and Performance Measurement and Evaluation
Status Report: Ending Period 1
Task
1
%Complete
EV
AC
0%
633
Cumulative Totals
Status Report: Ending Period 2
Task
1
%Complete
Finished
EV
555
66
AC
Cumulative Totals
Status Report: Ending Period 3
Task
1
2
3
4
200
PV
ཆེ།།
CV
SV
| |
PV
CV
-
%Complete
EV
AC
Finished
6
0%
30%
25%
655752
22
PV
Cumulative Totals
Status Report: Ending Period 4
Task
1
2
3
4
%Complete
EV
AC
PV
Finished
6
5
0%
7
50%
10
50%
8
30
Cumulative Totals
Status Report: Ending Period 5
Task
1
2
3
4
Cumulative Totals
SV
CV
SV
| | || | 2
CV
SV
है ।।
%Complete
EV
AC
PV
CV
SV
Finished
6
5
50%
8
60%
12
70%
10
35
Status Report: Ending Period 6
Task
1
2
3
4
%Complete
EV
AC
PV
CV
SV
Finished
6
5
50%
10
80%
16
Finished
15
46
Cumulative Totals
Status Report: Ending Period 7
Task
%Complete
EV
AC
PV
CV
SV
1
Finished
6
5
2
Finished
14
3
Finished
20
4
Finished
15
5
0%
0
6
50%
9
Cumulative Totals
63 5:43 AM Mon Apr 1
Due Dates
00
00
49%
ISE 363 Ch 1...
Project+... ✓
ISE 201 hom...
ISE 312 Hw...
0
Chapter 13 Progress and Performance Measurement and Evaluation 525
Period
SPI
CPI
PCIB
1
234567
FIGURE A13.1-1C
120
110
FIGURE A13.1-1D
2.20
2.00
1.80
Dollars
100
90
80
70
60
PV-
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Time periods
Index
1.60
SPI = EV/PV
CPI = EV/AC
PCIB EV/BAC
1.40
CPI =
1.20
SPI=
1.00
PCIB=>
.80
.60
.40
.20
0
1
2
3
4
5
6
7
Time periods
+
