Earned Value Calculations Flashcards
Planned Value
PV
The Authorised budget assigned to Project Work
The value of the work planned to be completed to a point in time, usually the data date, or project completion.
Earned Value
EV
The measure of work performed expressed in terms of the budget authorized for that work.
The planned value of all the work completed (earned) to a point in time, usually the data date, without reference to actual costs.
EV = sum of the planned value of completed work
Actual Cost
AC
The realized cost incurred for the work performed on an activity during a specific time period.
The actual cost of all the work completed to a point in time, usually the data date.
Budget at Completion
BAC
The sum of all budgets established for the work to be performed
The value of total planned work, the project cost baseline.
Cost Variance
CV
The amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost
The difference between the value of work completed to a point in time, usually the data date, and the actual costs to the same point in time.
CV = EV - AC
Positive = Under planned cost
Neutral = On planned cost
Negative - Over planned cost
Schedule Variance
SV
The amount by which the project is ahead or behind the planned delivery date, at a given point in time, expressed as the difference between the earned value and the planned value.
The difference between the work completed to a point in time, usually the data date, and the work planned to be completed to the same point in time.
SV = EV - PV
Positive - Ahead of Schedule
Neutral - On schedule
Negative - Behind Schedule
Variance at Completion
VAC
A projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion and the estimate at
completion.
The estimated difference in cost at the completion of the project
VAC = BAC - EAC
Positive - Under planned cost
. Neutral - On planned cost
Negative - Over planned cost
Cost Performance Index
CPI
A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost
A CPI of 1.0 means the project is exactly on budget, that the work actually done so far is exactly the same as the cost so far. Other values show the percentage of how much costs are over or under the budgeted I amount for work accomplished.
CPI = EV/AC
> 1.0 = Under planned cost
exactly 1.0 = On planned cost
<1.0 = Over planned cost
Schedule Performance Index
SPI
A measure of schedule efficiency expressed as the ratio of earned value to planned value.
An SPI of 1.0 means that the project is exactly on schedule, that the work actually done so far is exactly the same as the work planned to be done so far. Other values show the percentage of how much costs are over or under the budgeted amount for work planned.
SPI = PV/EV
> 1.0 = Ahead of Schedule
exactly 1.0 = On Schedule
<1.0 = Behind Schedule
Estimate at Completion
EAC
The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete.
If the CPI is expected to be the same for the remainder of the project, EAC can be calculated using:
EAC = BAC/CPI
If future work will be accomplished at the planned rate, use:
EAC = AC + BAC - EV
If the initial plan is no longer valid, use:
EAC = AC + Btm up ETC
If both the CPI and SPI influence the remaining work, use:
EAC = AC + ((BAC - EV)/(CPIxSPI))
Estimate to Completion
ETC
The expected cost to finish all the remaining project work.
Assuming work is proceeding on plan, the cost of completing the remaining authorized work can be calculated using:
ETC = EAC - AC
Reestimate the remaining work from the bottom up.
ETC = Re-estimate
To Complete Performance Index
TCPI
A measure of the cost performance that must be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding worfc to the budget available.
The efficiency that must be maintained in order to complete on plan.
TCPI = (BAC - EV)/(BAC - AC)
The efficiency that must be maintained in order to complete the current EAC.
TCPI = (BAC-EV)/(EAC-AC)
Greater than 1.0 - Harder to complete
Exactly 1.0 - Same to complete
Less than 1.0 - Easier to complete
