This website is being put up to disseminate Project planning information for project management professionals.It is a forum to discuss various aspects of project planning and try and understand various concepts involving the same .To store and share historic data of various successfully completed projects for planning purposes.the historic data can help in accurate planning of future projects.It also contains a query posting option to help clarify doubts arising in day to day planning activities.The various complexities in planning like earned value method,how to generate an S-curve,relative weight ages are discussed in detail. The various disciplines involved in engineering planning and the relative weightages are also discussed.The website also plans to discuss usage of various related software like primavera,MS project and also the advantages and disadvantages of using each of them for project planning purposesEarned Value Method is the basic tools of Project management. Unfortunately it is also one of the least understood among the practioners of Project Management .Here i have explained in brief about this method .For further updates on planning related subjects keep watching this space.
1)What is Variance In Project management terminology? What are types of Variance?
Variance in general is used to describe the difference between planned & actual.
Variance can be generally two types Schedule Variance & Progress variance.
Schedule Variance represents the the loss or gain in terms of time. Whereas the progress variance
represents the loss or gain in terms of quantity or %
2)What are the various methods used to measure Variance?
Variance could be measured using an S-Curve or using any other Project Management Software like Primavera or MS Projects.
3)How is Schedule Variance and Cost variance calculated for Project Management ?
Schedule Variance(In terms of Cost) = BCWP- BCWS
Cost Variance = BCWP-ACWP
Where BCWP is budgeted cost of work performed.
Where BCWS is budgeted cost of work scheduled.
Where ACWP is actual cost of work performed.
4)What Is SPI in Project Planning Terminology?
SPI is Schedule Performance Index is a method to measure the Project performance and find out if it
is on schedule. The formula for calculation is as follows
or SPI= EV/PV
A score of greater than 1 shows the Project is within the Schedule and is favourable.
5)What Is CPI in Project Planning Terminology?
CPI is used to measure the cost efficiency of the Project. The formula for it is as below
or CPI =EV/AC
Then obviously if CPI is greater than 1 ,then the Project is within its budget.
What is Estimate At Completion or EAC Project Planning Terminology?
EAC is nothing but the Estimated cost of the project on completion based on Current CPI(Cost Performance Index)
6)What Is a critical Path In Project Planning ?
Critical Path is the sequence of activities in a network, which has the least Float.
7)What is the formula for Earned Value?
Earned Value or EV= BCWP
8)What is the major limitation of Earned Value Method?
One of The Major limitation of Earned Value Method is it does not measure the work Quality parameter.
9)What are the levels Used in Project Planning or What do you mean by L1,L2,L3 level?
L1,L2,L3 level are various levels of detals at which the project is planned.
L1 has least amount of details .Detailing increases with every level.
Example: L0-Project Level( Like maybeRefinery Project)
L1-Unit Level(Like Maybe Unit 101 &102)
L2 Discipline Level(Like Maybe Civil ,Mech,Electrical)
L3 Activity Level ( Concreting of Foundation)and so on till the required level of Planning is achieved.