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Adjusting the BCWS in Earned Value Methods X%/Y%

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Earned Value Management

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Major Reen
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Major Reen
Project Manager, United States

Adjusting the BCWS in Earned Value Methods X%/Y%

I am in a disagreement with a coworker regarding Earned Value Methods X%/Y%. They contend that by assigning an Earned Value method of (for example) 50/50, your BCWS should automatically be adjusted to have 50% of your budget allocated in month 1 and 50% allocated in month 2.
Being an ex-MPM user, I know the software does not do that, but I seem to be losing the debate. I don’t think that by virtue of assigning an EVM, your BCWS that was established in your integrated master plan (IMS) should be altered to accommodate that EVM.
Sounds like the tail wagging the dog to me. Any takers?

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  Paul D Giammalvo
3
Paul D Giammalvo
Professor and Consultant, Indonesia
 

Changing the BCWS

Sorry Major, but you should NOT change the BCWS at all... That is and should remain your baseline, against which you measure, assess and evaluate your BCWP and ACWP.

The bigger challenge is how to match your ACWP against the BCWP. Using the 50/50 rule you will have earned 50% of the BCWS for that activity, but will have no ACWP to charge against it, making it appear in the beginning that you are ahead of schedule and under budget and you won't know for sure what your CPI and SPI are until after the activity finishes.

 

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topic EVM in Fixed Price Software Projects
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Special Interest Group


More on Earned Value Management
Summary Discussion Topics
topic What is Earned Value Management? Definition of EVM
topic EVM in Fixed Price Software Projects
topic When is an Asset over / under cost?
topic Earned Value Management is Like a Speedometer
topic EVM Implementation in Construction
👀Adjusting the BCWS in Earned Value Methods X%/Y%
topic EVM Problem: Project Scope Change
topic Earned Value Management (EVM) in Agile Projects
topic EVM Baseline Cost When Moving a Task to Another Calendar Year
topic Project Portfolio Scorecard in EVM
🔥 Tips to Improve the Productivity in your Project
topic Project Management Finance
Special Interest Group
Knowledge Center

Earned Value Management



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