EARNED VALUE FORMULAS “Simplified”

• Earned Value Management Is a project management methodology used to track project

performance as well as forecast future performance.
• EVM integrates the scope baseline, schedule baseline and cost to provide performance
measurements (PMB).
• Results can be expressed in dollars and/or percentage.
• EVM can be used to report current/past project performance, and predict future project
performance based on current/past performance.
• EVM can be used Variance Analysis Forecasting Current/Past Performance Future Performance

CV SV CPI SPI
Cost Performance Index Schedule Performance
Cost Variance Schedule Variance
Index

EV – AC EV – PV EV / AC EV / PV
Where: Where: Where: Where:
EV = Earned Value EV = Earned Value EV = Earned Value EV = Earned Value
AC = Actual Cost PV = Planned Value AC = Actual Cost PV = Planned Value
 EARNED VALUE FORMULAS “Simplified”

CV - Cost Variance • EV – AC

EV – AC • The difference between Earned Value and Actual Cost

Negative • Cost Overrun or over budget

Positive • Under Budget

Zero • On Budget

CPI - Cost Performance Index • EV /AC

EV/AC • The ratio of Earned Value to Actual Cost
Value < 1 • Project performance Over Budget
Value > 1 • Project performance Under Budget
Value= 1 • Project Performance On Budget
 EARNED VALUE FORMULAS “Simplified”

SV - Schedule Variance • EV – PV

EV – PV • The difference between Earned Value and Planned Value

Negative • Project performance behind schedule

Positive • Project performance ahead schedule

Zero • Project Performance on schedule

SPI - Cost Performance Index • EV /PV

EV/PV • The ratio of Earned Value to Planned Value

Value < 1 • Project performance behind schedule

Value > 1 • Project performance ahead schedule

Value= 1 • Project Performance on schedule