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Project Management Metrics

In this article, we will discuss the following project management metrics: -

Scenario

Consider the following scenario where project is planned according to the following table

Activity	Days	Cost per day (in Indian rupees)	Planned Cost (Days * Cost per day)
Requirement Gathering	3	800	2400
Design	2	600	1200
Development	4	900	3600
Testing	4	700	2800
Production deployment	3	500	1500
		Total budget	11500

But after 8 days, the actual work completed is

Planned value is the cost incurred for the project as per the plan. The formula for calculating the planned value is: -

Planned days * Cost per day

Activity	Days	Cost per day (in Indian rupees)	Planned value	Comments
Requirement Gathering	3	800	2400	3 days are allocated to this task. So, this task must be 100% completed
Design	2	600	1200	2 days are allocated to this task. So, this task must be 100% completed
Development	4	900	2700	On the 8th day, this task should be 75% completed as per the plan.
Testing	4	700	0
Production deployment	3	500	0

The Earned Value is

Planned Cost * Actual percentage Completed

Activity	Actual % complete	Planned Cost	Earned Value
Requirement Gathering	100%	2400	2400
Design	100%	1200	1200
Development	50%	3600	1800
Testing	0%	2800	0
Production deployment	0%	1500	0

Actual cost is how much is the cost incurred to the project. The formula is

Actual number of  days * Cost per day

Activity	Days	Cost per day	Actual cost (After 8 days)
Requirement Gathering	3	800	2400
Design	2	600	1200
Development	4	900	2700
Testing	4	700	0
Production deployment	3	500	0

Cost variance is

Earned Value - Actual Cost

Activity	Days	Cost per day	Actual cost (After 8 days)	Earned Value(After 8 days)
Requirement Gathering	3	800	2400	2400
Design	2	600	1200	1200
Development	4	900	2700	1800
Testing	4	700	0	0
Production deployment	3	500	0	0
Total			6300	5400

Cost variance = 5400 - 6300 = -900

The formula of schedule variance is

Earned Value - Planned Value

Activity	Days	Cost per day	Earned Value(After 8 days)	Planned value
Requirement Gathering	3	800	2400	2400
Design	2	600	1200	1200
Development	4	900	1800	2700
Testing	4	700	0	0
Production deployment	3	500	0	0
			5400	6300

So, the schedule variance is (5400 - 6300) = -900.

The formula is

Earned Value/Actual Cost

Activity	Days	Cost per day	Actual cost (After 8 days)	Earned Value(After 8 days)	Cost Performance Index
Requirement Gathering	3	800	2400	2400
Design	2	600	1200	1200
Development	4	900	2700	1800
Testing	4	700	0	0
Production deployment	3	500	0	0
			6300	5400	0.86

Note - CPI Should Be Greater Than Or Equal To 1.

The formula is

Earned Value/Planned Value

Activity	Days	Cost per day	Earned Value	Planned Value
Requirement Gathering	3	800	2400	2400
Design	2	600	1200	1200
Development	4	900	1800	2700
Testing	4	700	0	0
Production deployment	3	500	0	0
Total	5400	6300

Schedule Performance Index is 5400/6300 = 0.8571428571

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