Earned Value Management (EVM) Formulas & S-Curve

Professionals as well as pmp aspirants need evm formulas. In fact many believe that the earned value management (evm) formulas are difficult to remember. However, with little practice and understanding anyone can recollect these formulas. Following table consists of essential list of evm formulas.

EVM Formulas

Abbreviation

Name

Equation

Interpretation of Result

SV Schedule Variance SV = EV – PV Positive = Ahead of scheduleNeutral = On scheduleNegative = Behind Schedule
SPI Schedule Performance Index SPI = EV/PV Greater than 1.0 = Ahead of schedule

Exactly 1.0 = On schedule

Less than 1.0 = Behind schedule.

CV Cost variance CV = EV – AC Positive = Under planned costNeutral = On planned costNegative = Over Planned cost
CPI Cost Performance Index CPI = EV/AC Greater than 1.0 = Under planned cost

Exactly 1.0 = On planned cost

Less than 1.0 = Over Planned cost

VAC Variance at Completion VAC = BAC – EAC Positive = Under planned cost

Neutral = On planned cost

Negative = Over planned cost

EAC Estimate at Completion EAC = BAC/CPI

EAC = AC + BAC – EV

EAC = AC + Bottom-up ETC

EAC = AC + [(BAC-EV)/ (CPI x SPI)]

If the CPI is expected to be the same

If future work will be accomplished at the planned rate

If the initial plan is no longer valid, use:

If both the CPI and SPI influence the remaining work, use:

ETC Estimate to Complete ETC = EAC – AC

ETC = Reestimate

ETC = (BAC-EV)/CPI

TCPI To Complete Performance Index TCPI = (BAC – EV) / (BAC-AC)

TCPI = (BAC-EV) / (EAC-AC)

Work Remaining = BAC – EV

Funds Remaining = BAC – AC

Funds Remaining = EAC – AC

Greater than 1.0 = Harder to complete

Exactly 1.0 = Same to complete

Less than 1.0 = Easier to complete

Earned Value Management S-Curve

EVM S curve is a definitive tool to track project progress. It is also an effective tool to predict project health. EVM indices such as schedule performance index and cost performance index assist in reporting project status. Further EVM can also forecast project completion dates as well as budget required for completing the balance work. The evm graph also helps to recollect important evm formulas.

EVM_S_CURVE_Formulas
Earned Value Management Formulas & S Curve

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