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27 January 2015

Understanding Earned Value Management: Part 3 – Earned Value Mathematics – Project Current State

David A. Zimmer
David A. Zimmer, PMP
Chief Project Professor
American Eagle Group
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Understanding Earned Value Management:
Part 3 – Earned Value Mathematics
Project Current State

PMBOK® Guide Definition:

Cost Variance (CV): The amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost.

Schedule Variance (SV): A measure of schedule performance expressed as the difference between the earned value and the planned value.

Cost Performance Index (CPI): A measure of cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost.

Schedule Performance Index (SPI): A measure of schedule efficiency expressed as the ratio of earned value to planned value.

Practical Definition:

Cost Variance (CV): The difference between project progress (earned value) and the actual cost (actual cost) at a given point in the schedule.

Schedule Variance (SV): The difference between project progress (earned value) and the planned progress (planned value) at a given point in the schedule.

Cost Performance Index (CPI): Measures our efficiency of money spent on the project. Are we getting a dollar of progress for every dollar spent?


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