EVM - Earned Value Management

EVM - Earned Value Management

Earned Value Management (EVM) also referred to as earned value, is a technique for the management of cost and schedule.

Planned Value => is the amount of resources, usually stated in terms of dollars, that are expected to be consumed to accomplish a specific piece of work scope.

Actual Cost => is the amount of resources, usually stated in terms of dollars, that were expended in a specified time period to accomplish a specific scope of work.

Earned Value => is a measure of the amount of work accomplished, stated in terms of all or a portion of the budget assigned to that specific scope of work.

Some formula,

Schedule Variance (SV) = Earned Value (EV) - Planned Value (PV)

SV % = Schedule Variance (SV) / Planned Value (PV)

Schedule Performance Indicator (SPI) = Earned Value (EV) /Planned Value (PV)

To Complete Schedule Performance Indicator (TSPI) = ( Total Budget - EV ) / ( Total Budget - PV )

Budget At Completion (BAC) = Baselined Effort-hours * Hourly Rate

Estimate At Completion => EAC = AC + ( BAC -EV )

Estimate At Completion => EAC = AC + ETC ( Estimate to complete )

Estimate At Completion => EAC = AC + ( BAC- EV ) / CPI

Variance At Completion => VAC = BAC - EAC

% Completed Planned = PV / BAC

% Completed Actual = AC / EAC