Chapter 6. Special Focus: Earned Value Flashcards
Budget at Completion (BAC)
How much was original planned for this project to cost.
Formula:
n/a - derived by looking at the total budgeted cost for the project.
Planned Value (PV), aka Budgested Cost of Work Schedule (BCWS)
How much work should have been completed at a point in time based on the plan. Delivered by measured planned work completed at a point in time.
Formula:
PV = Planned % Complete x BAC
Earned Value (EV), aka Budgest Cost of Work Performed (BCWP)
How much work was actually completed during a given period of time. Derived by measuring actual work completed at a point in the schedule.
Formula:
EV = Actual % Complete x BAC
Actual Cost (AC), aka Actual Cost of Work Performed (ACWP)
The money spent during a given period of time.
Formula:
Sum of the costs for the given period of time.
Cost Variance (CV)
The difference between what we expected to spend and what was actually spent
Formula:
CV = EV - AC
Schedule Variance (SV)
The difference between where we planned to be in the schedule and where we are in the schedule
Formula:
SV = EV - PV
Cost Performance Index (CPI)
The rate at which the project performance is meeting cost expectations during a given period of time
CPI = EV / AC
Cumultative CPI (CPIc)
The rate at which the project performance is meeting cost expectations from the beginning up to a point in time. CPIc is also used to forecast the project’s costs at completion
Formula:
CPIc = EVc / ACc
Schedule Performance Index (SPI)
The rate at which the project performance is meeting schedule expectations up to a point in time.
Formula:
SPI = EV / PV
Estimate at Completion (EAC)
Projecting the total cost at completio based on project perofrmance up to a point in time.
Formula:
EAC = BAC / CPIc
Estimate to Completion (ETC)
Projecting how much more will be spent on the project, based on past performance.
Formula:
ETC = EAC - AC
Variance at Completion (VAC)
The difference between what was budgeted and what will actually be spent.
Formula:
VAC = BAC - EAC
To-Complete Performance Index (TCPIc)
Performance that must be achieved in order to meet financial or schedule goals.
Formula:
TCPIc = (BAC - EV) / Remaining Funds
Types of Cost
Fixed - Costs that stay the same throughout the life of the project.
Variable - Costs that may vary on a project.
Direct - Expenses billed directly to the project.
Indirect - Costs that are shared and allocated among several or all projects.
Sunk - Costs that have been invested into or expended upon the project.
Opportunity - the cost of the loss of potential benefit from the alternatives when a choice is made that excludes those alternatives. Most often associated with project selections.
