Re: Materials, % Complete and EVM
From: Steve House [MVP] (sjhouse.remove.this_at_to.send.hotmail.com)
Date: 11/30/04
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Date: Tue, 30 Nov 2004 16:33:32 -0500
How about showing the cost not in the "Order" task but in the "Install" task
where it is actually consumed? It didn't cost you 100k to order it - that
took a few hours clerical time and a long distance phone call.
Theoretically if you didn't install it your could return it for credit so
your $100k hasn't really been "spent" yet - purchasing it has simply
transformed one form of capital asset (money) into another form of capital
asset (computer hardware). The asset really isn't "spent" until you
incorporate it into the project deliverable. Would that give you a more
accurate picture?
-- Steve House [MVP] MS Project Trainer/Consultant Visit http://www.mvps.org/project/faqs.htm for the FAQs "Jeff Hutchinson, PMP" <jhutchin@rocketmail.com> wrote in message news:b7a12ad7.0411290954.6f016318@posting.google.com... > Hi - > I am having trouble with accurate reporting when adding hardware > materials to my plan. > > I am running a $266K project that is where duration % complete is 34% > and work % complete is 37% and I've actually only spent $77K. Sounds > pretty good right. > > $100K of the $266K is for 4 servers and the software that is required. > I have added this $100K material resource to the resource pool and > assigned it to the "Order Hardware" activity in my project schedule. > > When the "Order Hardware" activity is 0% complete, my CPI is around > 1.2 and my SPI is around 1.09. Sounds great right. > > Well we just ordered the server last friday so I want to update it to > 100% complete. Only thing is then my project actual cost has just > increased by $100K and now my CPI is .5. > > I am very particular in the way that I report project performance. I > use the Earned Value Management (EVM) methodology....reporting BAC, > AC, Planned % Complete, Actual $ Complete, PV, EV, SV and CV. > > I want to show that I have purchased this $100K item but I don't want > it to show that I have grossly overbudget either. > > Any ideas? > > Thank you, > Jeff Hutchinson, PMP
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