Earned Value Management

Planned Value(PV)- Planned value refers to what the project should be worth at a particular point in the schedule. It is also referred as BCWS (Budgeted Cost of Work Scheduled).

Earned Value(EV)- It is the physical work completed to date and the authorized budget for that. It is also referred as BCWP(Budgeted cost of work performed).

Actual cost (AC)- It is the actual amount of money spent. It is also referred as ACWP( Actual cost of work performed).

Estimate at completion (EAC) -It refers to the estimated total cost of the project at completion.


CPI- It is cost performance Index .

CPI= EV/AC

If CPI is less than 1, this means the project is over budget.

BAC refers to budget at completion.

It is related to EAC

EAC = BAC/CPI

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ETC refers to estimate to completion.

ETC = EAC-AC


CV - refers to cost variance

CV= EV-AC

SV refers to schedule variance 

SV= Ev-PV

Negative cost or schedule variance means the project is behind in cost or schedule.


SPI refers to schedule performance Index

SPI = EV/PV


VAC refers to variance at completion 


VAC=BAC-EAC