a project management technique

Used to consolidate scope, cost, and schedule information

Measure project progress and cost efficiency

Forecast project cost and completion time

Make sure the project goes according to plan

Detect deviations promptly and take measures

Provide a common language for project stakeholders

Enhance team collaboration

Also known as budgeted cost (BCWS)

The budgeted cost of work planned to be completed at a specific point in time

PV = amount of work planned to be completed × budgeted unit price of the work

Also known as Budget for Work Completed (BCWP)

Budgeted cost of work actually completed

EV = Actual amount of work completed × Budgeted unit price of the work

Also known as Actual Cost (ACWP)

How much it actually costs to get the job done

AC = Actual amount of work completed × Actual unit price of the work

Metrics for measuring cost performance

Difference Between EV and AC

CV = EV AC

Positive values ​​indicate cost savings

Negative values ​​indicate cost overruns

Metrics for measuring schedule performance

Difference Between EV and PV

SV = EV PV

A positive value indicates progress is ahead of schedule

Negative values ​​indicate progress is behind schedule

Metrics for measuring cost efficiency

EV to AC ratio

CPI=EV/AC

Values ​​greater than 1 indicate good cost efficiency

Values ​​less than 1 indicate poor cost efficiency

Metrics for measuring schedule efficiency

EV to PV ratio

SPI = EV / PV

A value greater than 1 indicates progress is ahead of schedule

A value less than 1 indicates that progress is behind schedule

Track project costs and progress

Detect deviations promptly

Based on the deviation analysis results

Adjust project plan or execution strategy

Forecast total project cost

EAC = AC (BAC EV) / CPI

Forecast remaining work costs

ETC = (BAC EV) / CPI

Measure remaining work performance requirements

TCPI = (BAC EV) / (EAC AC)

Requires reliable data collection and recording systems

Regularly audit and verify data

Changes may affect PV, EV and AC

Change control processes are needed to manage the impact

Simple projects may not require EVM

Complex projects require more detailed management

training and communication

Ensure stakeholders correctly interpret the meaning of indicators

Automated earned value calculations and reporting

Provide real-time data analysis and chart display

Manually entering data and calculating metrics

Suitable for small projects or preliminary analysis

Determine project critical path and time buffer

Used in conjunction with EVM to optimize resource allocation

Adjust resource allocation to meet project needs

Ensure maximum resource usage efficiency

Seamlessly integrates with other project management tools

Provide a more comprehensive view of the project

Leverage AI for more accurate cost and schedule forecasts

Reduce human error and bias

Combining EVM with agile methods

Adapt to rapidly changing project environments

Learn from projects and continuously improve EVM practices

Improve project management efficiency and effectiveness