148- Earned Value Management (EVM) Formulas

Flashcards covering Earned Value Management formulas.

Budget at Completion (BAC)

The original budget of the project. It may require basic math to calculate based on given scenarios (e.g., building stories costing a certain amount).

Planned Value (PV)

The amount of money worth of work that should have been done on the project; calculated by taking the planned percent complete times the budget at completion (BAC).

Earned Value (EV)

The amount of money worth of work actually completed on the project; calculated by multiplying the actual percent complete by the Budget at Completion (BAC).

Actual Cost (AC)

The amount of money already spent on the project; there is no specific formula for this, it is simply the total expenses to date.

Cost Variance (CV)

The difference between the work done and the money spent; calculated as EV - AC. A positive value is under budget (good), and a negative value is over budget (bad).

Cost Performance Index (CPI)

The rate of how spending correlates to earnings on the project; calculated as EV / AC. A value of one or over is good (on or under budget), and under one is over budget.

Schedule Variance (SV)

The difference between the amount of work that should have been done versus the amount of work actually done; calculated as EV - PV. A positive value means ahead of schedule, and a negative value means behind schedule.

Schedule Performance Index (SPI)

The rate of how the project is meeting the schedule; calculated as EV / PV. A value of one means on schedule, over one means ahead of schedule, and under one means behind schedule.

Estimate at Completion (EAC)

A forecast of the total cost of the project at completion based on the current spending rate; calculated as BAC / CPI.

Estimate to Complete (ETC)

The forecast of the amount needed to complete the current project based on its current performance; calculated as EAC - AC.

Variance at Completion (VAC)

The difference between the original budget and the new forecasted budget; calculated as BAC - EAC. A positive value is good, and a negative value is not.

To-Complete Performance Index (TCPI)

The performance that needs to be met to finish the project within budget; calculated as (BAC - EV) / (BAC - AC). It indicates how hard one has to work to finish the project within the budget.