Following are some examples of earned value definitions and formula columns that can be added to the earned value sheet. For the examples below, we will start the following values:
|•||BAC = $1,000|
|•||BCWS = $600|
|•||BCWP = $400|
|•||ACWP = $750|
|•||EAC = $1800|
Cost Variance (CV) is the difference between a task’s estimated or budgeted cost and its actual cost. A negative variance indicates the project or shell is over budget.
CV = BCWP – ACWP
Example: $400 – $750 = –$350
Scheduled Variance (SV) is the difference between the current progress and the scheduled progress of a task, in terms of cost. It is a comparison of the amount of work performed during a given period to what was scheduled to be performed. A negative variance means the project or shell is behind schedule.
SV = BCWP – BCWS
Example: $400 – $600 = –$200
Cost Performance Index (CPI) is the ratio of budgeted costs of work performed to actual costs of work performed. A value of less than 1 (less than 100%) indicates that the project or shell is over budget, and you are getting less work per dollar than planned.
CPI = BCWP/ACWP
Example: 400/750 = 0.53 or 53%
Schedule Performance Index (SPI) is the ratio of budgeted costs of work performed to budgeted costs of work scheduled. A value of less than 1 (less than 100%) indicates that the project or shell is behind schedule.
SPI = BCWP/BCWS
Example: 400/600 = 0.67 or 67%.
The Cost Schedule Index (CSI) reflects the relationship between CPI and SPI. The CSI value should be close to 1.0. The farther the value from 1.0, project or shell recovery becomes more difficult to achieve.
CSI = CPI x SPI
Example: 0.53 x 0.67 = 0.3551
The To Complete Performance Index (TCPI) is the ratio of the work remaining to be done to funds remaining to be spent as of the status date. A TCPI value greater than 1 indicates a need for increased performance; less than 1 indicates performance can decrease. This helps determine how much of an increase in performance is necessary on the remaining project or shell tasks to remain within budget.
TCPI = (BAC - BCWP) / (BAC - ACWP)
Example: ($1,000 – $400) / ($1,000 – $750) = 2.4
VAC is the difference between the BAC) and the EAC.
VAC = BAC – EAC
Example: $1,000 – $1,800 = –$800
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