Level of Effort (hours)

Budget hours are released in proportion to effort. This method is appropriate for time-based activities when it is assumed that there is no discrepancy in the planned value and earned value.

  • Planned Value

    Budget hours are released based on these percentages during the scheduled start date and scheduled end date period, respectively (based on the last approved baseline).

  • Earned Value

    Earned Value is the same as the Planned Value.

Example

  • Activity approved Baseline Scheduled Start Date: January 1, 2015
  • Activity approved Baseline Scheduled End Date: March 21, 2015
  • Budgeted Hours: 10000 hours
  • The EVM is Level of Effort. So, the budget is time phased proportionately across the activity duration.
  • Activity Duration: 31 Days (in January) + 28 Days (in February) + 21 Days (in March) = 80 Days
  • Time Phase Budget in Period 1 (January 15) = 10000 / 80 * 31 = 3875 hours
  • Time Phase Budget in Period 2 (February 15) = 10000 / 80 * 28 = 3500 hours
  • Time Phase Budget in Period 3 (March 15) = 10000 / 80 * 21 = 2625 hours

If the Earned Value is same as the planned value and in the same period:

  • Earned Value in Period 1 (January 2015) = 10000 / 80 * 31 = 3875 hours
  • Earned Value in Period 2 (February 2015) = 10000 / 80 * 28 = 3500 hours
  • Earned Value in Period 3 (March 2015) = 10000 / 80 * 21 = 2625 hours

If the actual hours incurred in January 2015 is 3300 hours:

  • Hours Variance = 3000 – 3875 = -875 hours
  • Schedule Variance = 3875 – 3875 = 0 hours