Earned Value Management





2

Abstract3

Summary4

Introduction5

Discussion6

Earned Value Analysis (EVA)6

Budgeted Cost of Work Performed (BCWP)6

Budgeted Cost of Work Scheduled (BCWS)6

Actual Cost of Work Performed (ACWP)7

Graphical Representation of EVM7

The common calculations in the EVM8

BCWM Calculation8

BCWS Calculation8

ACWP calculation9

Derived Metrics10

Scheduled Variance (S. V) = BCWP - BCWS10

Scheduled Performance Index (S.P.I) = BCWP / BCWS10

Cost Performance index (C.P.I) = BCWP / ACWP10

To complete Cost Performance Index (TCPI) = (total budget - BCWP) / (total budget - ACWP)10

Benefits of EVM11

Managers and EVM12

Budgetary projections vs. EVM12

Abstract

In his paper the main focus is on the Earned Value Management (EVM). The EVM is the most common techniques used in the project management. It is single tool which at the same time put sharp eye on the budget, time schedule and overall progress of the project. There are many calculations which are also described in this his paper. These calculations help the manager to efficiently control all the parameters of project. In the end we see how much it is important for the manger.

Summary

In the project management, all the managers are using the Earned Values Management (EVM). The main reason is that in this technique the progress of all the units can be seen on the single screen or page. The most interested areas for the project manager in the project are the actual and planned work, budget and schedule. In this paper, we are focusing the concept of EVM in detail. In addition, we are also discussing the concepts and calculations which are related to the EVM. These concepts and calculations are very helpful for the manger. Because of the efficiency of EVM, it has preference over all types of techniques. Mangers prefer this technique and are using it throughout the project.

Earned Value Management

Introduction

In the project management, the term Earned Values Management (EVM) is used to know the physical health of a project (Flemin et. al. 2000). It shows what the accomplishments remained in the past, progress in the present and also the forecast of future performance. In the EVM, the important performance elements of projects like the cost, schedule and scope are integrated. For the project manager, it is the best tool to keep a bird view on the status of project. A careful planning and efficiently applying of EVM techniques can reduce a lot of schedule and cost issues. In the starting, the EVM had emerged out as the tool for financial analysis. Today, it has so many uses and one of the basic tools for the executives and project managers. It is now the necessity of almost all types of projects. The most common concepts in the EVM are the Budgeted Cost of Work Performed (BCWP), Budgeted Cost of Work Scheduled (BCWS) and Actual Cost of Work Performance (ACWP). From these three fundamental calculations, there are some indexes which also help the managers to understand more things about the project like the Scheduled Variance, Scheduled Performance Index, and Cost Performance index and to complete Cost Performance ...