Earned Value Management using Odoo

Project Management with the
lights on: Earned Value
Management using Odoo
Adrià Gil Sorribes -
Eficent Business and IT Consulting Services, S.L
2019
EXPERIENCE

Copyright 2019 Eficent Business and IT Consulting Services S.L.
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Introduction1
EVM Basic Elements2
EVM Performance Analysis and Forecasting3
Guidance for the Use of Key EVM Practices4

Introduction
● Feedback is CRITICAL to the success of any project.
● Earned Value Management (EVM) has proven itself to be one of the most effective
performance measurement and feedback tools for managing projects. It enables managers to
close the loop in the plan-do-check-act management cycle.
● EVM helps to clearly and objectively illuminate where a project is and where it is going as
compared to where it was supposed to be and where it was supposed to be going.
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Introduction
● Earned Value Management (EVM) attempts to answer to the following questions:
○ ...are we ahead or behind schedule?
○ ...how efficiently are we using our time?
○ ...when is the project likely to be completed?
○ ...are we currently over or under our budget?
○ ...how efficiently are we using our resources?
○ ...what is the remaining work likely to cost?
○ ...what is the entire project likely to cost?
○ ...how much will we be under or over budget at the end?
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Introduction
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1960s
1970s
1980s
1990s
2000s
2010s
EVM as financial
analysis specialty in
United States
Government programs.
Often ignored or even actively resisted by
project managers in both government and
industry.
EVM emerged as a project management
methodology to be understood and used by
managers and executives.
● NASA
● Project Management
Institute (PMI)
● Society of Cost Estimating
and Analysis
Mandatory
requirement of the
US government

Introduction
● The effective use of EVM requires that it is used on projects where the principles of good
project management are being applied.
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Implementations of EVM
can be scaled to fit
projects of all sizes and
complexities.

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EVM Basic Elements2

Planned Value
● Planned Value (PV) describes how far along project work is
supposed to be at any given point in the project schedule.
Constitutes the Performance Measurement Baseline
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Earned Value
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● Earned Value is a snapshot of the work progress at a
given point of time. Reflects the amount of work that has
actually been accomplished to date, expressed as the
planned value for that work.

Product of Work Duration of Work Effort
1-2 Measurement Periods >2 Measurement Periods
Discrete efforts Fixed Formula Weighted Milestone
Percent Complete
Earned Value: Performance Measurement
Earned Value is a measure of work performed.
● Techniques are selected during project planning and are the basis for performance
measurement during project execution and control.
● Work performance is measured periodically, such as weekly or monthly.
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Earned Value: Performance Measurement
● In our case, in Odoo, mapping the % complete to project stages allows to implement fixed
formula or percent complete.
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Actual Cost
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● Actual Cost is an indication of the level of resources
that have been expended to achieve the actual work
performed to date.

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EVM Performance
Analysis and Forecasting3

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● Schedule Variance (SV)
● Cost Variance (CV)
● Variance at Completion
(VAC)
VARIANCES INDICES
● Schedule Performance Index
(SPI)
● Cost Performance Index
(CPI)
● To-Complete Performance
Index (TCPI)
FORECASTS
● Time Estimate at Completion
(EACt
)
● Estimate at Completion
(EAC)
● Estimate to Complete (ETC)

Schedule Analysis and Forecasting
● Schedule Variance (SV)
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Indicates how much
ahead or behind
schedule the project is.
SV = EV - PV

Schedule Analysis and Forecasting
● Schedule Performance Index (SPI)
○ Indicates how efficiently the project team is using its time.
● Time Estimate at Completion (EACt
)
○ Is a rough estimate of when the project will be completed, if current
trends continue.
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Cost Analysis and Forecasting
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● Cost Variance (CV)
Indicates whether a
project is under or over
budget.
CV = EV - AC

Cost Analysis and Forecasting
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● Cost Performance Index (CPI)
○ Indicates how efficiently the project team is using its resources.
● Estimate at Completion (EAC)
○ Is a rough estimate of when the final cost of the project if
current performance trends continue.
● Estimate to Complete (ETC)
○ Shows what the remaining work will cost.

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Guidance for the Use
of Key EVM Practices4

Establish a Performance Measurement Baseline
● Decompose the work to a manageable level
● Assign unambiguous management responsibility
● Develop time-phased budget for each work task
● Select the appropriate Earned Value Measurement Technique
● Maintain Integrity of Performance Measurement Baseline
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Measure and Analyze Performance against the Baseline
● Record resource usage during project execution
● Objectively Measure the Physical Work Progress
● Credit Earned Value according to Earned Value Techniques
● Analyze and Forecast cost/schedule performance
● Report performance problems and/or take action
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Odoo Demo5

Odoo Demo
● Find the module in:
project_earned_value_task in:
https://github.com/Eficent/project-earned-value
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Future work
● Include management by exception
● Improve EVM technique in Odoo
● Improve data visualization
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eficent#odooexperience
Thank you.
2019
EXPERIENCE

Earned Value Management using Odoo

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