Earned Value Analysis

Question 1

Why would make a calculation and find SPI = 1 even though the project is behind schedule?

Answer 1

Conventional EVA schedule performance indicators (SV and SPI) use how much money has been spent as an indicator of how much time has passed.

This becomes an inaccurate indicator of the project schedule since spending can speed up or slow down during the duration of a project.

Question 2

What are the equations for the following:

• Planned Value (PV)
• Earned Value (EV)
• Cost Performance Indicator (CPI)
• Schedule Performance Indicator (SPI)
• “E”stimated Cost “T”o “C”omplete (ETC)
• “E”stimated Cost “A”t “C”ompletion (EAC)

Answer 2

PV = Budget (Baseline Cost) x % Scheduled

EV = Budget (Baseline Cost) x % Complete

CPI = EV / AC

SPI = EV / PV

ETC = (BAC - EV)/CPI

EAC = AC + ETC