EVM
EVM is a management methodology for integrating scope, schedule, and resources, and for objectively measuring project performance and progress. Performance is measured by determining the budgeted cost of work performed (i.e. earned value) and comparing it to the actual cost of work performed (i.e. actual cost).*
- Budget at Completion: BAC
- Actual Cost: AC
- Earned Value: EV
- Planned Value: PV
- Cost Variance: CV = EV – AC
- Schedule Variance: SV = EV – PV
- Cost Performance Index: CPI = EV/AC
- Schedule Performance Index: SPI = EV/PV
- Variance at Completion: VAC = BAC – EAC
- To-Complete Performance Index = TCPI = (BAC – EV)/(BAC – AC)
- Estimate at Completion: EAC = BAC – EV + AC (if you get back on plan)
- Estimate at Completion: EAC = BAC/CPI (if you continue at current burn rate)
- Estimate to Complete: ETC = EAC – AC
* From the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fourth Edition, Project Management Institute, Inc., 2008.
