Formulas Flashcards
EVM
Earned Value Management.
An “early warning” Project Management tool that enables managers to identify and control problems before they become irrecoverable.
EVA
Earned Value Analysis.
Work performed based on the progress achieved.
Example (should be presented as a graphical chart):
Content [ ]……..54%
Design [ ]…………46%
Artwork [ ]…………….35%
Programming [ ]……….49%
PV
Planned Value.
The authorized budget for the project.
BAC
Budget at Completion.
The project’s original budget.
BAC is used to track the actual cost of the project against the forecasted budget. Compare the BAC to the EV to determine if the project is over or under budget.
The BAC is used in many formulas, but does not have its own formula.
EV
Earned Value.
The work performed on the project expressed in terms of PV.
EV = [% of work completed] ⋅ BAC
⋅ = the multiplication symbol
AC
Actual Cost.
The real cost incurred for the work performed on the project.
ETC
Estimate to Completion.
The expected additional costs to complete the project based on the current performance and budget.
ETC = EAC - AC
VAC
Variation at Completion.
The projection of the budget’s deficit or surplus.
VAC = BAC - EAC
< 0 = Deficit (bad)
> 0 = Surplus (good)
EAC
Estimate at Completion.
Predicts the total cost of the project at completion. There are several formulas that can produce the answer.
EAC = AC + ETC
EAC = BAC / CPI
EAC = AC + (BAC - EV)
CPI
Cost Performance Index.
The cost efficiency of the budgeted resources.
CPI = EV / AC
< 1 = Over budget
= 1 = On budget
> 1 = Under budget
CV
Cost Variance.
Determines if the budget is deviating.
CV = EV - PV
SV
Schedule Variance.
The amount a project is over or under budget.
If the project is on schedule or not compared to the planned schedule/timeline.
SV = EV - AC
> 0 = Ahead of schedule
= 0 = On schedule
< 0 = Behind schedule
SPI
Schedule Performance Index.
Measures the efficiency of a project schedule’s performance.
SPI = EV / PV
> 1 = Ahead of schedule
= 1 = On schedule
< 1 = Behind schedule
