Professional Documents
Culture Documents
no
VARIANCE?
yes
New Plan
Find cause
Forecast to
Corrective action
complete
4.
5.
Figure 15.4
Earned Value (EV or BCWP) is the budgeted value of work performed. Planned Value (PV) is also called BCWS budgeted cost of work scheduled.
Actual Cost (AC) is also called ACWP actual cost of work performed.
SV (schedule variance) = EV PV a negative value is bad (behind schedule) SPI (schedule performance index) = EV/PV a value less than 1 is bad CV (cost variance) = EV-AC a negative value is bad (over cost)
CPI (cost performance index) = EV/AC a value less than 1 is bad; equal to 1 suggests being on target; over 1 says under budget.
CPI = EV/AC = 0.7 It means that for each $1 actually spent, only $0.7 worth of work has been completed cost inefficient.