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### EVA - earned value analysis

posted Apr 13, 2013, 1:36 PM by Jageshwar Tripathi   [ updated Apr 17, 2013, 12:31 PM ]

## 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).
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eva_mso.zip
(51k)
Jageshwar Tripathi,
Apr 17, 2013, 12:24 PM