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Earned Value: Example

On Day X:
PLANNED VALUE (Budgeted cost of the work scheduled - BCWS) =
18 + 10 + 16 + 6 = 50
EARNED VALUE (Budgeted cost of the work performed - BCWP) =
18 + 8 + 14 + 0 = 40
ACTUAL COST (of the work performed - ACWP) =
45 (from your project tracking - not evident in above chart)
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Earned Value: Example
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Time (Date)
Planned Value: what your
plan called for sending on the
tasks planned to be
completed by this date.
Today
Earned Value: value (cost) of
what you have accomplished
to date, per the base plan.
Actual Cost: what you
have actually spent to this
point in time.
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Earned Value: Example
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Time (Date)
Today
Behind
Schedule
Over
Budget
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Variance
Must compare scheduling and budget variance
at the same time
Schedule variance: deviations from work planned
(not a measure of changes in cost)
Cost variance: deviations from the budget
(not a measure of work scheduled vs. work completed)
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Earned Value & Variance: Example
On Day X:
PLANNED VALUE (BCWS) = 18 + 10 + 16 + 6 = 50
EARNED VALUE (BCWP) = 18 + 8 + 14 + 0 = 40
ACTUAL COST (ACWP) = 45 (from your project tracking)
Therefore:
Schedule Variance = EARNED VALUE PLANNED VALUE = 40 - 50 = -10 (behind schedule)
Schedule Performance Index = EARNED VALUE / PLANNED VALUE = 40 / 50 = 0.8, or 80% of plan
Cost Variance = EARNED VALUE ACTUAL COST = 40 - 45 = -5
Cost Performance Index = EARNED VALUE / ACTUAL COST = 40/45 = .89, or your getting an 89
return on every $ (person-hour) spent on this project
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