Earned Value Management

1. EARNED VALUE
MANAGEMENT
By Matt Stehling

2. Terms & Formulas
Budget at Completion:
How much did we budget for the total project
effort.
Formula*:
Total Billable Hours * Blended $ Rate Per Hour
Where to find the data:
- Time & Cost Estimate
- Statement of work
* Denotes that you can just take the total amount of the project from the
documents above or calculate it yourself using the formula

3. Terms & Formulas
Actual Cost (AC):
as of today, what is the actual cost incurred for
the work accomplished.
Formula:
Actual Billable Hours Spent * $ Blended Rate
Where to find the data:
- PMT
- Time & Cost Estimate

4. Terms & Formulas
Earned Value (EV):
as of today, what is the estimated value of the
work actually accomplished
Formula:
Actual % Complete * Planned Value (PV)
Where to find the data:
- PMT
- Time & Cost Estimate
- Project Schedule

5. Terms & Formulas
Planned Value (EV):
as of today, the estimated value of of the work
planned to be done.
Formula:
BAC * Planned % Complete
Where to find the data:
- EV Worksheet
- Project Schedule

6. Terms & Formulas
Schedule Variance (SV):
Negative is behind schedule; Positive is ahead
of schedule
Formula:
EV-PV
Where to find the data:
EV Worksheet

7. Terms & Formulas
Cost Variance (SV):
Negative is over budget; Positive is under
budget
Formula:
EV-AC
Where to find the data:
EV Worksheet

8. Terms & Formulas
Schedule Performance Index (SPI):
We are (only) progressing at __ percent of the
rate originally planned.
Formula:
EV / PV
Where to find the data:
EV Worksheet

9. Terms & Formulas
Cost Performance Index (CPI):
We are getting $___ worth of work out of every
$1 spent. Funds are or are not being used
efficiently.
Formula:
EV / AC
Where to find the data:
EV Worksheet

10. Terms & Formulas
Estimate at Completion (EAC):
What do we currently expect the total project to
cost (a forecast)?
Formula:
AC + (BAC-EV)/CPI
Where to find the data:
EV Worksheet

11. Terms & Formulas
Estimate at Completion (EAC):
What do we currently expect the total project to
cost (a forecast)?
Formula:
AC + (BAC-EV)/CPI
Where to find the data:
EV Worksheet

12. Terms & Formulas
Estimate to Completion (ETC):
What do we currently expect the remaining
project work to cost?
Formula:
EAC – AC
Where to find the data:
EV Worksheet

13. Terms & Formulas
Variance at Completion (VAC):
How much over or under budget will we be at the
end of the project?
Formula:
BAC – EAC
Where to find the data:
EV Worksheet

14. Worksheet
For use by PMs open

15. The Ground Work
• Must-have a Project Schedule
• Must-have PMT tasks in sync with schedule
• Must-have project team updating PMT
• Must-have PMT Task groups that are in sync
with Statement of Work and Time & Cost
Estimate

16. QUESTIONS?