1. What is Earned Value Management?

Earned Value Management (EVM) is a project management technique that integrates scope, schedule, and cost to measure project performance. It provides quantitative data for project managers to assess how much work has been accomplished compared to what was planned and what was spent.

2. How Does the Calculator Work?

The calculator uses these EVM formulas:

Where:

• \( EV \) (BCWP) — Earned Value (Budgeted Cost of Work Performed)
• \( PV \) (BCWS) — Planned Value (Budgeted Cost of Work Scheduled)
• \( AC \) (ACWP) — Actual Cost (Actual Cost of Work Performed)
• \( SV \) — Schedule Variance
• \( CV \) — Cost Variance
• \( SPI \) — Schedule Performance Index
• \( CPI \) — Cost Performance Index

Explanation: Positive SV/CV indicates favorable performance, while SPI/CPI > 1 indicates better than planned performance.

3. Importance of EVM Metrics

Details: EVM provides early warning signs of project issues, helps forecast final project costs and completion dates, and enables data-driven decision making.

4. Using the Calculator

Tips: Enter all values in the same currency. Values must be ≥ 0. For accurate results, ensure EV, PV, and AC are from the same reporting period.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative SV indicate?
A: Negative SV means the project is behind schedule (less work completed than planned).

Q2: What does CPI < 1 mean?
A: CPI < 1 indicates cost overrun (spending more than budgeted for the work performed).

Q3: How often should EVM be calculated?
A: Typically calculated at regular reporting intervals (weekly, monthly) or at major milestones.

Q4: What are typical SPI/CPI thresholds for concern?
A: Generally, values below 0.90 or above 1.10 warrant investigation, but thresholds vary by organization.

Q5: Can EVM be used for agile projects?
A: Yes, with adaptations like using story points instead of currency for EV and PV.