Earned Value Decrease?

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iProject
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Joined: Thu 14 Mar 2013 7:18 pm

Hello,
Widget EV.png
Widget EV.png (43.91 KiB) Viewed 3597 times
I have a question about how earned value should be presented in the following example:

I've attached a picture of the hypothetical graph to help with my question.

Say my project is to build one widget. I plan out my tasks and my planned value (PV) is outlined as the blue line in the attached graph. My earned value (EV) is the red line, and at the beginning of my project, for simplicity's sake, say EV is equal to PV. My widget is being built on time and on budget.

But, on March 19th, my widget suffers a failure during the build and is destroyed, and I am left having to start the build all over again. Does my EV drop down to $0, as I've shown on the graph, because technically, without a widget I now have $0 value of the project completed on this day?

I would then start the build again, and track EV as normal. The EV curve would shift out to show the delay in schedule.

In this case, is the graph that I've created the correct way to show what has happened to EV during the course of my project?

Thanks in advance for any help you're able to provide!
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kwalford
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Joined: Thu 08 Dec 2011 1:34 pm

I would say yes that is correct.

The EV curve is for the whole project until completion.

If the loss of the widget meant that the current project remains valid still, then your graph looks accurate.

If the loss of the widget was so compelling that a new project is needed (current project closed), then a new EV graph would be needed for the new project.
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