How to work out percentage of a project that is complete/incomplete along with working out percentage of budget used relative to percentage of project?

Yashy
Yashy used Ask the Experts™
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Hi guys

I'm trying to come up with an effective way of creating a budget planning system that gives myself and the directors an idea of where we are on the project in comparison with the percentage of the budget spent.

Let's say we have signed off £100,000 for a project. We start the project and by the time 20% of the project is completed, we have burned through 50% of the budget already which, which could well be a disaster.

So two things I'm asking is:

a. Is there a way that you could apply a weighting system which would in turn give you an idea of how much of the project is done? Basically, a way of measuring the percentage of the project that has been completed/incomplete through entering data in necessary fields/excel sheets.

b. Is there a way of using the budget given to do some sort of comparison with the percentage of project completed, so that you could get an idea of what percentage of the budget we have gone through in comparison to the percentage completion of budget.

All of this would ideally be done in Excel.

Does this make sense? If it does, any input would be great. Perhaps you do it a different way and it has helped you and that input may help a lot too.

Thanks for helping
Yash
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Finance Analyst
Commented:
This is the basis of Earned Value Management (EVM), a google search should give you more detail.

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Commented:
Amazing, thank you Rob.

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