Earn Value Formula

Earned Value
EV
Formulas
Project
Control
www.udemy.com/user/Mohamed-abd-elhakiem/
1. Schedule Performance Index 2.. Cost Performance Index
SPI CPI
EV / PV EV / AC
3. Schedule Variance 4. Cost Variance
SV CV
EV-PV EV-AC
5. Estimate to complete 6.. Estimate At Completion
ETC EAC
BAC-EV ETC+AC
7. Variance At Completion 8. To Complete Performance index
VAC TCPI
BAC-EAC (BAC-EV) / (BAC-AC)
EV
FORMULA GUIDE!
1. Schedule Performance Index

SPI
=
EV / PV
EV: Earned Value = performance% * total budget = progress achieved.
PV: Planned Value = Schedule % * total budget = progress as per plan.
SPI: measure EV against PV

if SPI >1 the progress ahead the plan
if SPI =1 the progress equal the plan
if SPI <1 the progress behind the plan
EV
FORMULA GUIDE!
2. Cost Performance Index

CPI
=
EV / AC
EV: Earned Value
AC: Actual Cost of the work done.
CPI: measure EV against AC

if CPI >1 under budget
if CPI =1 the same budget
if CPI <1 Over Budget
EV
FORMULA GUIDE!
3. Schedule Variance
SV
=
EV - PV
SV: measure EV against PV
if SV >0 the progress ahead the plan
if SV =0 the progress equal the plan
if SV <0 the progress behind the plan
EV
FORMULA GUIDE!
4. Cost Variance
CV
=
EV - AC
CV: measure EV against AC
if CV >0 under budget
if CV =0 the same budget
if CV <0 Over Budget
EV
FORMULA GUIDE!
5. Estimate to complete
ETC
=
BAC-EV
ETC: measure the budget of the remained works
EV
FORMULA GUIDE!
6. Estimate At Completion
EAC
=
ETC+AC
ETC: measure the estimate budget at the end of the project.
EV
FORMULA GUIDE!
7. Variance At Completion
VAC
=
BAC-EAC
ETC: measure the difference between the project budget and the
estimate budget at the end of the project.
EV
FORMULA GUIDE!
8. To Complete Performance index
TCPI
=
(BAC-EV) / (BAC-AC)
ETC: measure
the difference between the project budget and the progress achieved
Against
the difference between the project budget and the actual cost
if TCPI >1 Over Budget
if TCPI =1 the same budget
if TCPI <1 under budget
Question Answer
Time Are We Ahead or Schedule Variance SV = EV - PV >0
Wise behind schedule? Ahead
<0
Behind
How efficiently are we Schedule SPI = EV / PV >1
using time? Performance Index Ahead
<1
Behind
When are we likely to Time Estimate at EA = OD / SPI Delay
finish work? Completion C,t amount
Cost Are we under or over Cost Variance CV = EV - AC >0

Wise our budget? Under
<0
Over
How efficiently are we Cost Performance CPI = EV / AC >1
using our resources? Index Under
<1
Over
How efficiently must To-Complete TC = BAC / BAC _ Extra
we use our remaining Performance Index PI _EV AC effort
Resources?
What will the Estimate to ETC = BAC - EV Remain

remaining work cost? Complete ed cost
What is the project Estimate at EA = AC + ETC Total
likely to cost? Completion C cost
Will we be under or Variance at VA = BAC - EAC >0
over budget? Completion Under
C
<0
Over
Practice Example
If as a project manager, and according to the

schedule and budget approved by the management
and the client,
you were supposed to complete a fence and

garden worth $100,000,
according to the approved plan, an amount of 40
thousand was allocated for the completion of the
fence and 60 thousand was allocated for the
completion of the garden ,
in case of both the fence and 90% of the garden

have been completed,
1 Have you completed the required work?

2 Have you done any other work besides them?
3 How much did my work cost?
4 Did you exceed the amount of 100,000, or maybe you were able to
save part of it?
Practice Example
what is the Earned value here

earned value = 40000 + 0.9 multiplied by 60000 = $ 94000.
How much did you actually pay to do this work, which is

the Actual Cost,
so we will ask you for documents to check how much you

paid to complete this, and we found that you paid $ 95000
, hmmm it seems that you are doing poorly in terms of
costs.
How much did you planned to pay to do this work, which is

the planned Value,
The fence and the garden were supposed to be completed
in full, for which we allocated an amount of 100,000, which
is the value that we planned to spend.
Planned Value, then P V = $ 100000

Practice Example
Now we can pass our fair judgment on you:

1 Performance in terms of cost,
1st , the Cost Variance.
The difference between the value of what you accomplished and the
value of what you actually paid is the Cost Variance.
C V = earned value E V – planned value P V = 94000 – 95000 = - $1000.
you exceeded the budget by $1000.
2nd , the Cost Performance Index can be calculated as follows C P I =

earned value E V over actual cost A C = 94000 over 95000 =0.99 .
In other words, The performance in terms of costs is a little poor.
Practice Example
Now we can pass our fair judgment on you:

2 Performance in terms of Time ,
1st schedule variance,
schedule variance S V = earned value E V –planned P V = 94000 –

100000 = -6000.
Note that this indicator of time, although it is estimated in financial

value, as it expresses, as we said, the value of the delayed work, and
therefore the actual hour in the project was completed less than the
hour according to the original plan.
2nd ,The Schedule Performance Index can be calculated as follows S P I

= Earned value over the planned value = 94000 over 100000 = 0.94.
Finally
Performance in terms of time is also poor,
Thank you
for your tim e and a ttention.
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Earned Value

1. Schedule Performance Index

SPI: measure EV against PV

2. Cost Performance Index

CPI: measure EV against AC

8. To Complete Performance index

Cost Are we under or over Cost Variance CV = EV - AC >0

What will the Estimate to ETC = BAC - EV Remain

If as a project manager, and according to the

you were supposed to complete a fence and

in case of both the fence and 90% of the garden

1 Have you completed the required work?

what is the Earned value here

How much did you actually pay to do this work, which is

so we will ask you for documents to check how much you

How much did you planned to pay to do this work, which is

Planned Value, then P V = $ 100000

Now we can pass our fair judgment on you:

C V = earned value E V – planned value P V = 94000 – 95000 = - $1000.

you exceeded the budget by $1000.

2nd , the Cost Performance Index can be calculated as follows C P I =

In other words, The performance in terms of costs is a little poor.

Now we can pass our fair judgment on you:

1st schedule variance,

schedule variance S V = earned value E V –planned P V = 94000 –

Note that this indicator of time, although it is estimated in financial

2nd ,The Schedule Performance Index can be calculated as follows S P I

Let's build a community of knowledge-

Please comment on this post with your

Construction Claims Bundle.

 Delay Analysis Techniques.

 Construction Disruption Claims

 Scheduling tricks, tactics, defense, related to claims

 Dynamic Portfolio Dashboards.-English

 PSP Practice test-English

 Primavera risk analysis, Duration uncertainty.

 PMI-SP Practice test-English

Eng. Mohamed Abd Elhakiem

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