Earned Value Management Formulas
(EVM)
Planned Value (PV) - correct answer The worth of the work
that should be completed by a specific time in the project schedule.
To calculate this, focus on TIME. How far into the schedule you are in terms of time?
Knowing this time frame, Planned Value answers the question "How much value
SHOULD we have accomplished by this point in time?"
The formula is Planned Percent Complete x BAC
The Planned Percent Complete is a ratio between the total amount of project time
and the point in time you are at now. If you are two weeks into an eight week
project, you will multiple .25 x BAC
*Older name for this is Budgeted Cost of Work Scheduled
Earned Value (EV) - correct answer An estimate of the value
of the physical work actually completed.
Earned Value focuses on how much WORK was actually done. If you have completed
4 miles of a 20 mile project, you first need to calculate that ratio (20 percent). Then
the formula for EV is Actual Percent Complete x BAC, or in this case, .20 x BAC
**Older name for this is Budgeted Cost of Work Performed
Budget at Completion (BAC) - correct answer There isn't a
formula for this, it is just a calculation of what your total budget is for the project.
Actual Cost (AC) - correct answer This is the amount you have
actually spent to date.
