Plan value (the budgeted cost of work scheduled: bcws ), it is an approved estimate of the fees planned to be spent on an activity within a given period. The actual cost (the actual cost of work completed MED, acwp ), is the sum of the direct and indirect costs incurred by the completion of the work within a given period. Earned Value, also known as the budget for finished work (the budgeted cost of work completed MED: bcwp ),
This definition is hard to understand. See the following example: WBS of 2006/10/15
| Project |
Expected completion time |
Actual completion time |
Estimated cost |
Actual consumption |
| Detailed Design |
2006/10/10 |
2006/10/15 |
64000 |
68000 |
| Design Audit |
2006/10/15 |
Incomplete |
10400 |
|
| ... |
|
|
|
|
By the end of, the estimated cost was 64000 + 10400, that is, PV actual consumption = 68000, that is, AC to the end of the 15th, and only detailed design was completed, so eV was 64000. The EVM result is as follows:
| PV (budget) |
AC (actual cost) |
EV (surplus amount) |
Cost Difference |
Progress difference |
| EV-AC |
EV/AC |
EV-PV |
EV/PV |
| 74400 |
68000 |
64000 |
-4000 |
0.94 |
-10400 |
0.86 |
The cost difference shows that the project cost has exceeded the budget. From the progress difference, we can see that the progress of this project has lagged behind.
