Earned Value Management Flashcards
Budget at Completion (BAC)
Original budget of the project
Planned Value (PV)
PV = Planned % Complete × BAC
Amount of money worth of work that should have been done on the project
Earned Value (EV)
EV = Actual % Complete × BAC
Amount of money worth of work you’ve actually done on the project
Actual Cost (AC)
Amount of money you’ve already spent on the project
Cost Variance (CV)
CV = EV - AC
The difference between the work done and the money spent. This value should be positive for under budget. Negative values indicate over budget.
Cost Performance Index (CPI)
CPI = EV / AC
The rate of how we are spending to actually earning on the project. This value should be 1 and over for projects under budget.
Schedule Variance (SV)
SV = EV - PV
The difference between the amount of work we should have done vs. the amount actually done. This value should be positive for ahead of schedule. Negative values indicate behind schedule.
Schedule Performance Index (SPI)
SPI = EV / PV
The rate of how we are meeting the project schedule. This value should be 1 and over for a project to be ahead of the schedule.
Estimate at Completion (EAC)
EAC = BAC / CPI
Forecasting the total cost of the project at the end based on the current spending rate of the project.
Estimate to Completion (ETC)
ETC = EAC - AC
Forecasting the amount that will be needed to complete the current project based on the current performance.
Variance at Completion (VAC)
VAC = BAC - EAC
The difference between the original budget and new forecasted budget. This value should be positive for projects that may end at or under budget.
To-Complete Performance Index (TCPI)
TCPI = (BAC - EV) / (BAC - AC)
The performance index that needs to be met to finish the project within budget.
