Earned Value Management Formulas & Meanings

Question 1

CV =

Answer 1

Cost Variance | Formula: EV - AC | Negative is bad, positive is good

Question 2

SV =

Answer 2

Schedule Variance | Forumla: EV - PV | Negative is bad, positive is good

Question 3

CPI =

Answer 3

Cost Performance Index | Formula: EV/AC | Under 1 is bad, Over 1 is good

Question 4

SPI =

Answer 4

Schedule Performance Index | Formula: AC + (BAC - EV) | AC plus work remaining. use budget rate (atypical)

Question 5

EAC =

Answer 5

Estimate at Completion | Formula: AC + (BAC - EV) or BAC/CPI or AC + [BAC - EV]/[CPI *SPI] | Assumes poor cost performance & schedule performance will continue

Question 6

ETC =

Answer 6

Estimate to Completeion | Formula: EAC - AC | Value of work remaining

Question 7

VAC =

Answer 7

Variance at Completion | BAC - EAC | Negative is bad, Positive is good

Question 8

TCPI =

Answer 8

To Complete Performance Index | Formula: (BAC - EV) /(BAC - AC) | Optimal rate to complete within budget or (BAC - EV)/(EAC - AC) | Assumes original budget cannot be achieved.