W9-Musalllam Al Awaid-Earned Value Management for Weekly Blog Posting Project


  1. Problem Definition

Many, of not all, projects are started with an allocated budget and as usual with projects, not all things get done on time. That situation causes the usual question, “Is there enough money left in the budget?” and, “Will we finish on time?” Earned value management is one of the best tools to help you answer these questions. The weekly blog posting project for TAKATUF team 2014 has been analyzed using the above tool to see where we are   with respect to budget and schedule.

  1. Feasible options Identification

For earned value analysis are three fundamental values calculated for each task (task: An activity that has a beginning and an end. Project plans are made up of tasks.):

  • The budgeted cost of tasks as scheduled in the project plan, based on the costs of resources (resources: The people, equipment, and material that are used to complete tasks in a project.) assigned to those tasks, plus any fixed costs (fixed cost: A set cost for a task that remains constant regardless of the task duration or the work performed by a resource.) associated with the tasks. Called “the budgeted cost of work scheduled,” BCWS (BCWS: The earned value field that shows how much of the budget should have been spent, in view of the baseline cost of the task, assignment, or resource. BCWS is calculated as the cumulative timephased baseline costs up to the status date or today’s date.) is the baseline cost (baseline cost: The original project, resource, and assignment cost as shown in the baseline plan. The baseline cost is a snapshot of the cost at the time when the baseline plan was saved.) up to the status date (status date: A date that you set [rather than the current date] for reporting the time, cost, or performance condition of a project.) you choose. For example, the total planned budget for a 4-day task is $100 and it starts on a Monday. If the status date is set to the following Wednesday, the BCWS is $75.
  • The actual cost (actual cost: The cost that has actually been incurred to date for a task, resource, or assignment. For example, if the only resource assigned to a task gets paid $20 per hour and has worked for two hours, the actual cost to date for the task is $40.) required to complete all or some portion of the tasks, up to the status date. This is the actual cost of work (work: For tasks, the total labor required to complete a task. For assignments, the amount of work to which a resource is assigned. For resources, the total amount of work to which a resource is assigned for all tasks. Work is different from task duration.) performed (ACWP). For example, if the 4-day task actually incurs a total cost of $35 during each of the first 2 days, the ACWP for this period is $70 (but the BCWS is still $75).
  • The value of the work performed by the status date, measured in currency. This is literally the value earned by the work performed and is called the budgeted cost of work performed (BCWP). For example, if after 2 days 60% percent of the work on a task has been completed, you might expect to have spent 60 percent of the total task budget, or $60.
  1. Development of the outcome for the alternative

When the earned value analysis is done, the outcomes are (as illustrated in the figure below):

  1. On-schedule and on-budget
  2. Over-schedule and over-budget
  3. Behind-schedule and behind-budget
  4. On-schedule and behind-budget
  5. Behind-schedule and on-budget
  1. Selection of acceptable criteria

The acceptable status for a project to be at is either to be On-schedule and on-budget or On-schedule and behind-budget without compromising on quality.

  1. Analysis and Comparison of the Alternatives

 The data below are for the weekly blog posting project for TAKATUF team 2014.

posting 9

Earned value analysis is always specific to a status date you choose. You may select the current date or a date in the past. Here, the status date is 3rd August 2014.

On the data above analysis, we are supposed to have 225 blogs; however, we have only 101 blogs. Hence, we are behind schedule as it can be seen for the figure above where BCWP is less BCWS by 125 employee hour. With respect to the budget, we are over budget as the employee hours required (BCWP) for the work performed till date is only 101 hour, however the actual cost (ACWP) is 378 hours.

Based on the analysis above, it can be seen that we are in a real crisis with respect to both budget and schedule. Therefore,

  1. Selection of the preferred option

It is best to manage the project to be on-schedule and on-budget. It can be also behind-budget but with zero compromising on quality.

  1. Performance Monitoring and the Post Evaluation of Result.

Earned value analysis is powerful as it is obvious above. The earlier in a project’s life cycle you identify such discrepancies between ACWP, BCWP and BCWS, the sooner you can take steps to remedy the problem. Therefore, earned value analysis should be done frequently and take actions to overcome any anticipated troubles.

Based on the analysis as per now, few recommendations are concluded for the project team as following:

  • Little budget is remaining; you should do our best to manage with that. That can be done by pointing out few experienced members to help others get their blogs done faster.
  • You are far behind schedule, the only way to overcome that is to load yourself more. In other words, get more work done in shorter time.
  • Bottom-line is real real cooperation of the team is a must at this stage. Otherwise, big crisis is expected.


  1. Microsoft.com (2014). Applying Earned Value Analysis to your Project. Retrieved on 26th Jul 2014 from http://office.microsoft.com/en-001/project-help/applying-earned-value-analysis-to-your-project-HA001021179.aspx
  2. Google.com (2014). Earned Value Management. Retrieved on 26th Jul 2014 from https://www.google.com/search?q=earned+value+management&source=lnms&tbm=isch&sa=X&ei=4tHTU6G0DISj4gTeiYAQ&sqi=2&ved=0CAgQ_AUoAw&biw=1280&bih=683#facrc=_&imgdii=_&imgrc=iLT3Khhb3-G5JM%253A%3B7mamlmjYEG0xRM%3Bhttp%253A%252F%252Fwww.tensixconsulting.com%252Fwp-content%252Fuploads%252F2011%252F01%252FEVM-Gold-Card.png%3Bhttp%253A%252F%252Fwww.tensixconsulting.com%252Fconsulting-services%252Fearned-value-services%252F%3B393%3B297
  3. Paul D. Giammalvo (2014). PMI Certification Perp and Competency Development Course Day 5, Project Controls Using Earned Value.
  4. PMI-Oman 2014 , W8_Musallam Al-Awaid_ (Earned Value Analysis), Retrieved on 03.08.2014 from  https://pmioman14.wordpress.com/2014/07/26/w8-musalllam-al-awaid-earned-value-analysis/



2 thoughts on “W9-Musalllam Al Awaid-Earned Value Management for Weekly Blog Posting Project

  1. Great case study Musallam and your analysis was well done BUT…..

    I really cannot emphasize enough how important it is to show BOTH the early and late date curves and not just the early date curve. Rarely (if EVER) have I seen a project beating the early date curves, which makes it look like we are behind schedule all the time…. What is MORE important is whether or not we have breached the LATE DATE curve…….. Which means we have NEGATIVE FLOAT……. So while I am happy to accept this posting, my challenge to you is for your W10 posting ADD in the late date curve (which per the contract is offset by two weeks) and I promise you that will tell you a whole lot more than just looking at the early date curve!!!! (and in our more advanced course, we explore even more analysis that can be done with BCWP vs the Early and Late Date Curves)

    Keep up the good work and looking forward to seeing you catch up on your blog postings…..

    Dr. PDG, Jakarta

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