Earned Value Management methodology

Earned Value Management (EVM) methodology:

This is a project management technique used to track the progress and status of a project and forecast the likely future performance of the project.

Basic elements of EVM:

Planned Value (PV)= Hourly rate * Total hours planned

Earned Value (EV)= Baseline Cost * Percentage of Actual completion.

Actual Cost(AC) = Hourly rate * Total hours spent


The deriving values using these elements:

Schedule Variance (SV):

SV = EV-PV


Schedule Performance Index (SPI):

SPI = EV / PV


Cost Variance (CV):

CV = EV - AC


Cost Performance Index (CPI):

CPI = EV / AC


To Complete Schedule Performance Indicator (TSPI):

TSPI = (Total Budget - EV) / (Total Budget-PV)



To Complete Cost Performance Indicator (TCPI):

TCPI = (Total Budget - AC) / (Total Budget - AC)



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