Earned Value Management (EVM) Reference Card

EAC TAB (CBB or PBB) Management Reserve (MR) PMB Performance Measurement Baseline (PMB) ETC UB BAC VAC NCC AUW CBB PBB

Contract Price (Project Price)

Fee/Profit (no Project analogy) OTB

TAB
Plus Overrun

MR

CAs

SV CV

WPs

PPs *NASA Contractor & In-house Project Hierarchy

Actual Costs (ACWP)

Time Now

EVM Terminology
Projected Slippage

Planned Value (BCWS) Earned Value (BCWP)

Time
Variances: (Favorable is Positive, Unfavorable is Negative) Cost Variance (CV): CV = BCWP ACWP Schedule Variance (SV): SV = BCWP BCWS Variance at Completion (VAC): VAC = BAC EAC Performance Indices: (Favorable is > 1.0, Unfavorable is < 1.0) Cost Performance Index (Efficiency): CPI = BCWP / ACWP Schedule Performance Index (Efficiency): SPI = BCWP / BCWS CV% = CV / BCWP x 100 SV% = SV / BCWS x 100

To Complete Performance Index (TCPI) TCPIEAC = Work Remaining / Cost Remaining = (BAC BCWPCum) / (EAC ACWPCum) TCPIBAC = Work Remaining / Budget Remaining = (BAC BCWPCum) / (BAC ACWPCum) Estimate at Completion (EAC) = ACWP + ETC EAC = Actuals to Date + Work Remaining / Performance Factor EACComposite = ACWPCum + (BAC BCWPCum) / (CPICum x SPICum) EACCPI = BAC / CPICum Favorable Causes: Poor initial planning or estimating Technical breakthrough Cost of labor & Material lower than plan Front end loading Method of earning BCWP Inaccurate costing methods
Revised July 2011

Status Percentage % Complete = BCWPCum / BAC x 100 % Spent = ACWPCum / BAC x 100 % Schedule = BCWSCum / BAC x 100

ACWP AUW BAC BCWS BCWP CA CBB EAC ETC MR NCC OTB PBB PMB PP TAB TCPI UB WP

Actual Cost of Work Performed (Actual cost incurred for work accomplished during a given period) Authorized Un-priced Work (Work contractually approved, but not yet negotiated) Budget At Completion (Total planned value for the project) Budgeted Cost for Work Scheduled (Planned Value - budget assigned to the planned scheduled work to be accomplished) Budgeted Cost for Work Performed (Earned Value - budget value for the physical work accomplished) Control Account (Management control point to plan and control scope, schedule, and budget) Contract Budget Baseline (Total negotiated cost plus AUW) Estimate At Completion (Expected total cost of the project when the scope of work will be completed) Estimate To Complete (Expected cost needed to complete all remaining work) Management Reserve (Budget withheld for unknowns / risk management) Negotiated Contract Cost (Contract price minus profit or fees or project value for in-house work) Over Target Baseline (Sum of CBB and recognized overrun) Project Budget Baseline (Same as CBB for in-house projects) Performance Measurement Baseline (Time-phased budget plan) Planning Package (Far term effort within a CA not yet defined into WPs) Total Allocated Budget (Sum of all budgets for work on project/contract = NCC, CBB/PBB, or OTB) To Complete Performance Index (Efficiency needed from status date to achieve an EAC or BAC) Undistributed Budget (Broadly defined effort not distributed into CAs) Work Package (Near term effort detailed planned within a CA)

NASA Policy & Requirements for the Application of EVM

NASA EVM requirements are found in NPR 7120.5, NASA Program and Project Management Processes and Requirements and NPR 7120.7, NASA Information Technology and Institutional Infrastructure Program and Project Management Requirements. Policy is contained in NASA FAR Supplement (NFS) 1834.201. NASA EVM requirements are predicated on the principles and guidelines in ANSI/EIA-748, Industry Guidelines for Earned Value Management Systems. NPR 7120.5 requires the project EVM approach to be in place by Key Decision Point (KDP) C (the conclusion of Preliminary Design Review (PDR)) and implemented in Phase C (Final Design and Fabrication) through KDP E (Flight Readiness Review (FRR) or Launch Readiness Review (LRR)). Additionally, project performance reporting must begin within 60 days after the start of Phase C. To meet this timeline, it is highly recommended that projects begin implementation planning during Phase B (Preliminary Design and Technology Completion). NPR 7120.5 also requires that NASA programs and projects use EVM on projects and contracts that meet the criteria that follow. 1. For projects with a total anticipated final value of $20 million or more, EVM principles should be applied, as defined by ANSI/EIA-748, Earned Value Management Systems. If the project's primary NASA Center has a validated EVMS, the project uses that system rather than the EVM principles application approach. 2. For development contracts and subcontracts valued at or between $20M and $50M, the contractor is expected to have an EVMS that complies with the 32 guidelines in the ANSI/EIA-748 Standard. 3. For development contracts and subcontracts valued at $50M or more, the contractor is required to have an EVMS that has been formally validated by the Government. 4. EVM is not required on contracts for non-developmental engineering support services, steady state operations, basic and applied research, and routine services such as janitorial services or grounds maintenance services. In these cases, application of EVM is at the discretion of the program or project manager (PM). NASA projects that do not have a validated EVMS will use the seven management principles that are contained in ANSI/EIA-748 standard.

Common EAC Calculations

Unfavorable Causes: Poor initial planning or estimating Technical problem Cost of labor or material higher than plan Inflation New labor contracts Work stoppage
NASA EVM Website: http://evm.nasa.gov