Earned Value management (PV, AC, EV, ETC, CV, SV, CPI, SP)
Budgeted cost of planned work PV or bcws= plan workload * Budget quota
Actual cost of completed work AC or ACWP
Budgeted cost of completed work EV or bcwp= completed work * Budget quota
Progress deviation (SV) =ev-pv,sv>0 Progress sv<0 Progress lag
Cost Variance (CV) =ev-ac,cv>0 cost savings cv<0 cost overruns
Cost performance Index (CPI) =ev/ac,cpi>1 represents cost savings cpi<1 cost overruns
Progress Performance Index (SPI) =ev/pv,spi>1 indicates progress ahead spi<1 progress lag
BAC (Budget cost at completion) Baseline budget costs: All work budgets, without changing cost benchmarks, BAC will not change
etc (estimated to Complete) completion fashion cost estimate: To complete, the remaining workload still need how much cost, etc is to estimate the remaining work cost of complete project
etc= Total pv-completed Ev=bac-ev
The pv*cpi of etc= remaining work
EAC (estimate at completion) estimates the total cost of the project based on the project's performance and risk. The most commonly used prediction techniques are the different forms of the following methods:
1, eac= up to the current actual cost plus all the remaining work of the new estimates. This method is usually used in two situations ① past implementation indicates that the original estimate assumption is completely outdated, ② the original estimate is no longer applicable because of the change of condition. Formula: Eac=ac+etc
2, eac= to the current actual cost plus the remaining budget (Bac-ev). The current deviation is considered a special case, and the project team often uses this approach in the belief that similar deviations will not occur in the future. Formula: Eac=ac+bac-ev.
3. eac= the current actual cost plus the budget of the remaining items modified by the actual Cost performance index (CPI). This method usually treats the current deviation as a typical form for future deviations. Formula eac=ac+ (Bac-ev)/CPI, where the CPI is the cumulative CPI.