Evm Basics
- 1. Earned Value Management (EVM)
- 2. EVM is used to track the Progress and Status of a Project and Forecast its future performance. EVM integrates the; Scope Schedule Cost of a project and can be used to derive; past performance of the project current performance of the project predict the future performance of the project by use of statistical techniques.
- 3. Three basic elements of EVM ; Planned Value ( PV - BCWS) Actual Cost (AC - ACWP) Earned Value (EV - BCWP) … all captured on an as-of reporting date and derived from a WBS associating costs to tasks.
- 4. Planned Value (PV) ; (BCWS) or (PV) = total cost of the work Scheduled /Planned as-of a reporting date. Calculated: PV or BCWS = Hourly Rate * Total Hours Planned or Scheduled NOTE: Hourly Rate is the rate at which effort will be valued.
- 5. Actual Cost (AC) ; (AC) or (ACWP) is the total cost taken to complete the work as of a reporting date. Calculated: AC or ACWP = Hourly Rate * Total Hours Spent
- 6. Earned Value (EV) ; (EV) or (BCWP) = total cost of work Completed/Performed as of a reporting date. Calculated: EV or BCWP = Baseline Cost * % Complete Actual
- 7. % Completed Planned ; = PV / BAC % Completed Actual ; Percentage of work actually completed by the Reporting Date. % Completed Actual = AC / EAC
- 8. Project Schedule and Cost variance. Schedule Variance (SV); Earned Value - Planned Value BCWP – BCWS Cost Variance (CV); Earned Value - Actual Cost BCWP - ACWP
- 9. Keys ; Work Breakdown Structures. Discreet Element “Tasks” verses Level of Effort “activity”. Valuation of Tasks and Concatenation to a whole (process). Measurement.
- 10. Earned Value Management (EVM)