## Important terms
#### Planned value (PV) Budgeted cost of work scheduled (BCWS) is total budget given to perform a task within certain period of time.
#### Actual COST (AC)Actual Cost of Work Performed (ACWP) is the cost spent on work till date. (at a given point of time)
#### Earned Value (EV)Budgeted Cost of Work Performed (BCWP) is the cost which is budgeted for the work performed till now (at a given point of time)
#### Rate of performance (RP)Percentage of work which is completed with respect to work scheduled.
#### Performance Measurement Baseline (PMB)
Budgeted Cost of Work Scheduled (BCWS) for each time period, considered for complete duration of project. PMB provides a plan of budgets according to the phases, project work is scheduled.
### Calculations
Earned value EV = PVxRP
Schedule variance SV = EV - PV
Cost variance CV = EV - AC
Cost performance index CPI = EV/AC
Schedule performance index SPI = EV/PV
Budget at completion BAC = Total of PV at the end of project
Estimate at completion EAC = projection of total cost at completion EAC = AC + (BAC - EV)/CPI = BAC/CPI
Estimate to completion ETC = estimate of work to be completed ETC = EAC - AC
Variance at completion (VAC) VAC = BAC - EAC
### Interpretation
Negative value of CV = actual cost is more that planned for the work done. Negative value of SV = work took more time than planned CPI = 1 means actual cost and planned cost for the work are same. CPI<1 means actual cost is more than planned cost: overbudget CPI>1 means actual cost is less than planned cost: underbudget SPI =1 means project on schedule SPI <1 means project is behind the schedule SPI>1 means project is ahead of schedule Note: a zip file is attached bellow containing two templates of EVA (one origial made in open office and another converrted from open office to MS Excel). |