Forum Discussion
EVM with project- taking into account "cost" resource
I need the forum help.
what is the best way to take "cost" resource into the EVM calculation?
Once allocating cost to an activity, it does take it into the BCWS- the total cost of the activity.
Yet, I don't see it under PV calculation, EV calculation or even AC calculation, even if the "cost" is designated as a "start" payment.
How to allocate the "cost" so that it will be calculated according to project status?
Tnx
7 Replies
AviShenkar,
Consider this, the basic concept of earned value is to, well, earn value. Material and cost resources do not earn value, only work resources can "earn" value. Perhaps that is why the Project developers elected to not include cost and material resources in earned values metrics.
John
Tnx John as to this interesting POV. Yet, I think the EV regards a certain activity or a summary task. The evaluation of the EV takes into consideration also materials and money that are introduced into this effort, so why it shouldn't be considered here as well?
AviShenkar,
Sorry but I don't understand what you are saying. I'm simply offering a potential reason why Project's earned value metrics do not encompass the full scope of cost (e.g. real but non-earned). I suggest you submit a request through the Project portal at:
https://feedbackportal.microsoft.com/feedback/forum/40792262-301c-ec11-b6e7-0022481f8472
John
- Avi --
Microsoft Project does not factor Cost resources into its Earned Value calculations. This is a major limitation of using Cost resources. As an alternative, have you considered using the Fixed Cost column instead? That might solve your problem. Other than that, I am fresh out of ideas. But I hope this helps.Tnx a lot! wonder why it is so.
Fixed cost is an option, yet the crulling costs are not as needed with the EV, at least according to what I have done.
- Avi --
You are more than welcome for the help, my friend! I have absolutely no idea why the software engineers at Microsoft chose to eliminate Cost resources from EVA calculations, but they also made the same decision about Material resources. The software only includes the Costs from Work resources in EVA calculations. That is one of the reasons why organizations that are serious about EVA use a third party tool for these calculations. Hope this helps.
