EVM Flashcards
PV (Planned Value)
PV = Total Budget * % Work planned
EV (Earned Value)
EV = Total Budget * % Work completed
EV = Percent Completed * Planned Value
Cost Variance
CV = EV - AC
Schedule Variance
SV = EV - PV
Cost Performance Index
CPI = EV/AC
Schedule Performance Index
SPI = EV/PV
Estimate at Completion (EAC)
EAC = BAC/CPI
Estimated Time to Complete
Original Time Estimate/SPI
Positive CV
UNDER budget
Negative CV
OVER Budget
Positive SV
AHEAD of Schedule
Negative SV
BEHIND Schedule
CPI >=1
Efficiency in Utilizing
Resources allocated
CPI < 1
Not efficient in utilizing
resources allocated
SPI >= 1
Efficient in utilizing time
SPI < 1
Not Efficient in Utilizing Time
What is the cost baseline?
Represents the original, approved budget for the project.
erves as a reference point for measuring and controlling the project’s cost performance.
Explain how earned value management can be used to control costs and measure project performance
Cost Control: EVM enables managers to track actual costs against the planned budget (AC vs. EV). By analyzing the Cost Variance (CV), they can take corrective actions to control costs and keep the project within budget.
Performance Measurement: EVM provides a quantitative measure of how the project is performing in terms of cost and schedule adherence. It helps in assessing whether the project is meeting its objectives as planned.
Decision-Making: EVM equips project managers with actionable insights to make informed decisions regarding resource allocation, schedule adjustments, or changes to mitigate any deviations from the plan.
