All you ever wanted to know about earned value analysis
*
ACWP
BCWP
BCWS
CV =
CPI =
= SV
= SPI
Minus
Divided By
Minus
Divided By
*
| IF | ACWP>BCWP | ACWP=BCWP | ACWP<BCWP |
| Then | CV < 0 CPI < 1 | CV = 0 CPI = 1 | CV > 0 CPI > 1 |
| The Project is | Over Budget | On Budget | Under Budget |
*
| IF | BCWS>BCWP | BCWS =BCWP | BCWS <BCWP |
| Then | SV < 0 SPI < 1 | SV = 0 SPI = 1 | SV > 0 SPI > 1 |
| The Project is | Behind Schedule | On Schedule | Ahead of Schedule |
*
- EV – Previously called BCWP or Budgeted Cost of Work Performed, Earned Value or actual work.
- PV – Previously call BCWS or Budgeted Cost of Work Scheduled, Planned Value or the project budget.
- AC – Previously called ACWP or Actual Cost of Work Performed, Actual Costs
- CV – Cost Variance = BCWP – ACWP
- SC – Schedule Variance = BCWP – BCWS
- CPI – Cost Performance Index = BCWP/ACWP
- SPI – Schedule Performance Index = BCWP/BCWS
- EAC – Estimate At Completion, a forecast of most likely total project cost based upon project performance and risk.
Schedule = Original Schedule/SPI
Cost = Min: Original Budget/CPI or Max: Original Budget/(CPI * SPI)
*
- BAC – Budgeted at Completion = Σ of all the budgets (PV or BCWS)
- VAC – Variance at Completion = BAC – EAC
- ETC – Estimate to Complete = EAC – AC
*
*
- Value of the future of fund available today
FV = PV * (1 + i) n
- If you have $1,000 invested for three years at 10% how much will you have at the end of year three?
EOY 1 = $1,000 * (1 + 10%) = $1,100
EOY 2 = $1,100 * (1 + 10%) = $1,210
EOY 3 = $1,210 * (1 + 10%) = $1,331
*
- Value today of funds available in the future.
PV = FV / (1 + i)n
- If you want $1,000 in three years, how much do you have to invest today at 8% to receive your $1,000?
EOY 1 = $1,000 / (1 + 10%) = $925.93
EOY 2 = $925.93 / (1 + 10%) = $857.34
EOY 3 = $857.34 / (1 + 10%) = $793.83
*
- Net Present Value – Present Value minus present cost.
- Internal Rate of Return – Average rate of return earned over the life of the project. It is where discounted cash flow minus up front cost equals zero.
*
PERT
Weighted
Average
=
Optimistic + 4XMost Likely + Pessimistic
6
PERT
Standard
Deviation
=
Optimistic – Pessimistic
6
*