Please note that all the following Earned Value terms will be expressed in terms of cost terms.
- BAC (Budgeted at Completion): An estimate of the total project baseline cost.
- BCWP (Budgeted cost of work performed): How much did we budget for the work we’ve done?
BCWP is the cost of the task work actually done. BCWP calculation uses the % work complete value. BCWP is also called as Earned Value.
- BCWS (Budgeted Cost of Work Scheduled): How much work should be done by now?
BCWS value is original estimated of budgeted cost till Status Date. It uses the % complete value.
- ACWP (Actual cost of work performed): This field shows the actual cost incurred on a task. (How much did we actually spend till Status Date). This is a cumulative sum of the actual cost incurred on a task as of status date.
- CV (Cost Variance): The difference between the budgeted cost (BCWP) and actual cost (ACWP)is called as Cost Variance.
CV = BCWP - ACWP
If the CV is negative value, it implies that the task is currently over budget.
If the CV is positive value, it implies that the task is currently under the budgeted amount.
- SV (Schedule Variance): The difference between the BCWP and BCWS is called SV.
SV = BCWP - BCWS
If the SV is negative value, it implies that the project is currently behind schedule.
If the SV is positive value, it implies that the project is currently ahead of the schedule in terms of cost.
- CPI (Cost Performance Index): Ratio of budgeted cost of work performed to actual costs of work performed.
CPI = BCWP/ACWP
CPI < 1 indicates an over budget condition
- SPI (Schedule Performance Index): The ratio of the budgeted cost of work performed to the budgeted cost of work scheduled.
SPI = BCWP/BCWS
SPI < 1 indicates a behind schedule condition