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EVM Terms, Definitions, and Calculations
August 28, 2007 | Author: PM Hut | Filed under: Cost Estimating, Cost Management
EVM Terms, Definitions, and Calculations
By Tom Carlos (PMP) - Project Perfect
Tom Carlos (PMP) from Project Perfect compiled a list of all Earned Value Management terms, definitions, and calculations (formulas) where applicable.
| Symbol | Description | Formula | Explanation |
| PV | Planned Value | N/A | (Also known as BCWS - Budgeted Cost of Work Scheduled) The estimated value of the work planned to be done thus far. |
| AC | Actual Costs | N/A | (Also known as ACWP – Actual Cost of Work Performed)The total costs incurred to date, based on timesheets, invoices, other expenses, etc |
| EV | Earned Value | Sum of all (Task Budget * % Completed) | (Also known as BCWP – Budgeted Cost of Work Planned)The estimated value of (intended) work completed thus far, as it relates to the expected deliverables |
| CPI | Cost Performance Index | EV/AC | I am (only) getting ____ cents performance out of every $1 spent |
| SPI | Schedule Performance Index | EV/PV | I am only progressing at ___% of the rate originally planned |
| BAC | Budget At Completion | N/A | The original budget for the total job |
| Symbol | Description | Formula | Explanation |
| EAC | Estimate At Completion | Four options; see below. | The amount “currently expected” for the total project cost |
| EAC #1 | - | BAC/CPI | Used if no variances from the BAC have occurred |
| EAC #2 | - | AC + ETC | Used when original estimate is fundamentally flawed |
| EAC #3 | - | AC + BAC - EV | Used when the current variances are atypical |
| EAC #4 | - | AC + [(BAC-EV)/CPI] | Used when current variances are typical |
| ETC | Estimate To Complete | EAC-AC | From this point on, how much MORE do you expect the cost will be to finish the job |
| VAC | Variance At Completion | BAC-EAC | How much over or under budget will the project come in at |
| CV | Cost Variance (in dollars) | EV-AC | Negative is over budget, Positive is under budget |
| SV | Schedule Variance (in dollars) | EV-PV | Negative is behind schedule, Positive is ahead of schedule |
| PE | Planned Earned | EV/BAC | Project % Complete (as it relates to time and deliverables) |
| PS | Percent Spent | AC/BAC | Project % Spent (as it relates to cost) |
| CSI | Cost Schedule Index | CPI * SPI | The overall efficiency rating. The further CSI is from 1.0, the project will have difficulties in recovering. |
Tom Carlos has over 20 years of cumulative experience in business, technical, and training environments. He is a Certified Project Management Professional (PMP) and member of the Sacramento Valley PMI Chapter. For other articles on similar subjects, you can visit www.carlosconsulting.com or contact him at tom@carlosconsulting.com.
Project Perfect is a project management software and project infrastructure consulting organisation based in Sydney Australia. Their focus is to provide creative yet pragmatic solutions to Project Management issues as well as to set up the infrastructure an organisation requires to successfully manage projects.
Project Perfect sell “Project Administrator” software, which is a tool to assist organisations better manage project risks, issues, budgets, scope, documentation planning and scheduling. They also created a technique for gathering requirements called “Method H”, and sell software to support the technique. For more information on Project tools or Project Management visit www.projectperfect.com.au
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