Earned Value Management

EVMS Equations

Earned Value Management (EVM) is a project management technique for measuring project performance and progress in an objective manner. 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 the areas of planning and control are significantly impacted by its use; and similarly, using the methodology improves both scope definition as well as the analysis of overall project performance.

Below is a list of the main EVM equations.

Acronym Name Equations  
Variances
CV Cost Variance = BCWP – ACWP
= EV – AC
= (CV /BCWP) *100
CV% Cost Variance % = (EV – AC) / EV
= (BCWP – ACWP) / BCWP
SV Schedule Variance = BCWP–BCWS
= EV – PV
= (SV /BCWS) *100
SV% Schedule Variance % = (EV – PV) / PV
= (BCWP – BCWS) / BCWS
VAR Variance at Completion = BAC – EAC
Overall Status
% Scheduled = PVcum / BAC
= BCWScum / BAC
% Complete = EVcum / BAC
= BCWPcum / BAC
% Budget Spent = ACcum / BAC
= ACWPcum / BAC
WR Work Remaining = BAC – EVcum
= BAC – BCWPcum
Performance Index
CPI Cost Performance Index = EV / AC
= BCWP / ACWP
SPI Schedule Performance Index = EV / PV
= BCWP / BCWS
TCPIBAC To Complete Performance Index = WR / (BAC – ACWPcum)
(Total Budget – EV ) / (Total Budget – AC)
TCPIEAC To Complete Performance Index = WR / (EAC – ACWPcum)
= (Total Budget – BCWP ) / ( Total Budget – ACWP)
= (BAC – BCWPCUM) / (EAC – ACWPCUM)
Estimate at Completion
EAC Estimate at Completion = BAC / CPIcum
= ACWP + ETC
= ACWP + (BAC – BCWP) / (CPI x SPI)
EACCPI Estimate at Completion – Critical Performance Index = ACcum + WR / CPIcum
EACComposite Estimate at Completion –
Composite
= ACcum + WR / (CPIcum ∙ SPIcum)
Critical Path Length Index
CPLI Critical Path Length Index = (CP Length(Time Now To Contract End)) + Total Float (To Contract End Baseline Finish)) /CP Length
Baseline Execution Index
BEI Baseline 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
CPI Cost Efficiency = BCWP / ACWP; Favorable is > 1.0, Unfavorable is < 1.0
SPI Schedule Efficiency = BCWP / BCWS; Favorable is > 1.0, Unfavorable is < 1.0

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 EVMS Personnel should understand from these EVMS equations include:

AcqLinks and References:

Updated: 4/30/2021

Rank: G1

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