Earned Value Flashcards
Authorized budget assigned to scheduled work
Planned Value
Measure of work performed expressed in terms of the budget authorized for that work.
Earned Value
How is earned value calculated ?
EV = % completed x Planned Value (PV)
Realized cost incurred for the work performed on an activity during a specific time period.
Actual Cost (AC) : money that has been spent for work that has been completed.
Measure of schedule performance expressed as the difference between the earned value and the planned value.
Schedule Variance
How is schedule variance calculated
SV = EV - PV
Schedule variance = earned value - planned value
Measure of schedule efficiency expressed as the ratio of earned value to planned value.
Schedule performance index (SPI)
How is the schedule performance index calculated?
SPI = EV / PV
What does an SPI above 1 mean?
Project is on schedule
Amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost.
Cost variance (CV)
How is the cost variance calculated?
CV = EV - AC
What does a CV of zero mean?
Project is on budget.
What does a positive CV mean?
Project is performing under budget.
What does a negative CV mean?
Project is performing over budget.
Measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost.
Cost Performance Index (CPI)
