25-26 Earned Value Management PM1 Unit 5

​A metholody to measure progress and performance using 3 key numbers: PV, EV and AC

1. BAC (Budget At Completion) is simply the TOTAL Approved Budget!

2. PV The project's Planned Value (Total Budget point in time X % of completion)

3. EV The project's Earned Value (Current Work Complete % x Task Budget PV)

4. AC The project's Actual Cost (add all the money spent with receipts)

5. TCPI To Complete Performance Index (a ration or % of money needed to finish)
   

Givens will be EV, PV, and/or AC. (at least 2 must be given)

• EVM Calculations about Money:

  • Cost Variance (CV);

  • Cost Performance Index (CPI)

• EVM Calculations about Time:

  • Schedule Variance (SV);

  • Schedule Performance Index
    
    

• Money Formulas:

  • CV=EV-AC

  • CPI=EV/AC

• EVM Calculations about Time:

  • SV=EV-PV

  • SPI=EV/PV
    
    

Calculations You Will Make

The 4 Key EVM Calculations and Interpretations

Variance Cost and Schedule Calculations

• Cost Variance (CV) ~ CV=EV-AC

• ScheduleVariance (SV) ~ SV=EV-PV

​Children Eat Apples

​Someone Else's Problem

Cost: A CV of $0 or More is on budget or over budget (We want a CV of $0 or higher)

Schedule: A SV of 0 or More is on schedule or ahead of schedule (we want a SV of 0 or higher)

​

Interpreting of SV and CV Results

Performance Index Cost & Schedule Calculations

• Cost Performance Index (CPI) ~ CPI=EV/AC Children Eat Apples

• Schedule Performance Index (SPI) ~ CPI=EV/AC Someone Else's Problem

​​Children Eat Apples

Someone Else's Problem

Cost: A CPI of 1 or More On Budget or Under budget (we want 1 or more CPI)

Schedule: A SPI of 1 or More is On schedule or ahead of schedule

​

Interpreting of CPI and SPI Results

Earned Value Managment (Involves EV, PV, AC)

Good Outcomes are POSITIVE numbers and use words Under Budget and Ahead of Schedule.

When you calculate Variances You SUBTRACT! <=$0>= answers expected. Positive is good

When you calculate Indexes you DIVIDE! <=1>= answers expected.