Earned Value Analysis (EVA)

Basic idea

Compare what you planned to have done, what you actually have done, and what it has cost — to get objective cost- and schedule-performance numbers and forecast where the project will land.

Key formulas

• $PV$ (Planned Value) = budgeted cost of work scheduled
• $EV$ (Earned Value) = budgeted cost of work performed
• $AC$ (Actual Cost) = actual cost of work performed
• $CV = EV - AC$ (cost variance)
• $SV = EV - PV$ (schedule variance)
• $CPI = EV / AC$ (cost performance index; $<1$ = over budget)
• $SPI = EV / PV$ (schedule performance index; $<1$ = behind)
• $EAC = BAC / CPI$ (estimate at completion)

Earned Value Analysis (EVA)

• Eva can be used to:
  • report current/past project performance
  • predict future project performance based on current/past performance
• Results can be expressed in dollars and/or performance

Planned Value (PV)

The portion of the approved cost estimate planned to be spent on the given activity during a given period.

Earned Value

The value of the work actually completed

Actual Cost

The total costs incurred in accomplishing work on the activity in a given period

Example

You are assigned to manage a project that is planned to finish in 12 months, estimated to cost $100,000. At the end of the third month, based on the project Gannt chart, 20has reported the cost of the project to date as$35,000.

PV = (100_000\*3)/12 = \25_000 EV = (100_000\*20)/100 = \20_000 AC = $35_000

Siblings

• Definitions
• Developing Project Schedule
• Effort-time estimation
• Milestones vs Deliverables
• PERT (Program Evaluation and Review Technique) chart
• Planning in Agile
• Project Schedule
• Project Scheduling
• Project Tracking and Control
• Tasks