Earned Value Management

EVMS Equations

Earned Value Management (EVM) is a project management technique for objectively measuring project performance and progress. EVM has the ability to combine measurements of scope, schedule, and cost in a single integrated system. It’s notable for its ability to provide accurate forecasts of project performance problems. Early EVM research showed that its use significantly impacts the areas of planning and control; and similarly, using the methodology improves both scope definition as well as the analysis of overall project performance.

Definition: Earned Value Management (EVM) is a project management technique used to measure the progress, performance, and health of a project. It integrates project scope, schedule, and cost objectives and provides a structured approach to monitoring and controlling project performance.

Earned Value Management (EVM) Equations

AcronymNameEquations
Variances
CVCost Variance= BCWP – ACWP
= EV – AC
= (CV /BCWP) *100
CV%Cost Variance %= (EV – AC) / EV
= (BCWP – ACWP) / BCWP
SVSchedule Variance= BCWP–BCWS
= EV – PV
= (SV /BCWS) *100
SV%Schedule Variance %= (EV – PV) / PV
= (BCWP – BCWS) / BCWS
VARVariance at Completion= BAC – EAC
Overall Status
% Scheduled= PVcum / BAC
= BCWScum / BAC
% Complete= EVcum / BAC
= BCWPcum / BAC
% Budget Spent= ACcum / BAC
= ACWPcum / BAC
WRWork Remaining= BAC – EVcum
= BAC – BCWPcum
Performance Index
CPICost Performance Index= EV / AC
= BCWP / ACWP
SPISchedule Performance Index= EV / PV
= BCWP / BCWS
TCPIBACTo Complete Performance Index= WR / (BAC – ACWPcum)
(Total Budget – EV ) / (Total Budget – AC)
TCPIEACTo Complete Performance Index= WR / (EAC – ACWPcum)
= (Total Budget – BCWP ) / ( Total Budget – ACWP)
= (BAC – BCWPCUM) / (EAC – ACWPCUM)
Estimate at Completion
EACEstimate at Completion= BAC / CPIcum
= ACWP + ETC
= ACWP + (BAC – BCWP) / (CPI x SPI)
EACCPIEstimate at Completion – Critical Performance Index= ACcum + WR / CPIcum
EACCompositeEstimate at Completion –
Composite
= ACcum + WR / (CPIcum ∙ SPIcum)
Critical Path Length Index
CPLICritical Path Length Index= (CP Length(Time Now To Contract End)) + Total Float (To Contract End Baseline Finish)) /CP Length
Baseline Execution Index
BEIBaseline Execution Index= Tasks with Actual Finish Date / (# of Baseline Tasks Scheduled to Finish Prior to Status Date +Tasks Missing Baseline Start or Finish Date)
DoD TRIPWIRE METRICS
CPICost Efficiency= BCWP / ACWP; Favorable is > 1.0, Unfavorable is < 1.0
SPISchedule Efficiency= BCWP / BCWS; Favorable is > 1.0, Unfavorable is < 1.0

EVM is Systems Engineering

EVM is an important tool used by Program Managers (PM) and Systems Engineers in the Technical Assessment Process to appraise the program’s technical progress against the Performance Measurement Baseline (PMB). Systems Engineering is responsible for characterizing the entire technical scope of effort in the Work Breakdown Structure (WBS) and the corresponding event-driven program implementation in the Integrated Master Schedule (IMS). The WBS and IMS form the basis of the PMB and the foundation of EVM.

The five (5) main EVM equation variables:

Topics that Program Managers and EVM Personnel should understand from these EVMS equations include:

AcqLinks and References:

Updated: 3/9/2024

Rank: G1

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