1. What is Earned Value Management?

Earned Value Management (EVM) is a project management technique that integrates scope, schedule, and cost to measure project performance and progress. It provides quantitative data for project decision-making.

2. How Does the Calculator Work?

The calculator uses standard EVM formulas:

Where:

• \( EV \) — Earned Value (the value of work actually completed)
• \( PV \) — Planned Value (the value of work planned to be completed)
• \( AC \) — Actual Cost (the actual cost incurred)
• \( CV \) — Cost Variance (difference between earned value and actual cost)
• \( SV \) — Schedule Variance (difference between earned value and planned value)
• \( CPI \) — Cost Performance Index (ratio of earned value to actual cost)
• \( SPI \) — Schedule Performance Index (ratio of earned value to planned value)

3. Importance of EVM Metrics

Details: EVM metrics help project managers understand if the project is on budget (CV, CPI) and on schedule (SV, SPI). CPI > 1 indicates under budget, while SPI > 1 indicates ahead of schedule.

4. Using the Calculator

Tips: Enter percentage complete (0-100%), total project budget (BAC), percentage planned (0-100%), and actual costs incurred. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between EV and PV?
A: EV measures work actually completed, while PV measures work planned to be completed by a certain date.

Q2: What does a negative CV indicate?
A: A negative CV means the project is over budget (actual costs exceed earned value).

Q3: How is SPI interpreted?
A: SPI > 1 = ahead of schedule, SPI = 1 = on schedule, SPI < 1 = behind schedule.

Q4: When should EVM be used?
A: EVM is most valuable for projects with well-defined scope, schedule, and budget - typically in construction, IT, and engineering projects.

Q5: What are limitations of EVM?
A: EVM doesn't account for quality or technical performance, and requires accurate progress measurement to be effective.