Formulas Flashcards
Planned Value
The percent complete based on where the project should be
What is the formula to calculate the Earned Value
EV = percent complete * BAC
What is the formula for calculating Cost Variance?
CV = EV - AC
What is the formula for calculating Schedule Variance? Note that schedule variance can be calculated in time or dollars.
SV = EV - PV
How do you calculate the Cost Performance Index
CPI = EV / AC
Schedule Performance Index
SPI = EV / PV
Estimate at Completion (typical variance)
EAC = BAC / CPI
Estimate to Complete
ETC = EAC - AC
To-Complete Performance Index
TCPI = (BAC - EV) / (BAC - AC)
Variance at Completion
VAC = BAC - EAC
What is it that the VAC tells you?
The variance at completion tells the amount that a project will be under or over budget at the time of completion.
What is the BAC?
BAC is the Budget at completion. It is the amount that was originally budgeted for a project.
What does the CPI tell you?
The CPI is the cost performance index. It provides the rate of spending by looking at the Earned Value and dividing it by the Actual Cost. If the CPI is under “0” then the project is over budget (i.e., 0.792 means that a project is 20.8% over budget). Over “1” means that project is under budget.
What does the schedule variance formula tell you?
The schedule variance lets you know if you are ahead of or behind the planned schedule.
What information do we receive from the Earned Value?
The earned value is the value of work completed to the indicated point. It includes the value of all work completed regardless of what was planned.
