Metrics for Earned Value Project Management
The metrics of earned value analysis are based on:
- Budgeted Cost of Work Scheduled (BCWS): The planned cost of the total amount of work scheduled to be performed by the milestone date.
- Actual Cost of Work Performed (ACWP): The cost incurred to accomplish the work that has been done to date.
- Budgeted Cost of Work Performed (BCWP): The planned (not actual) cost to complete the work that has been done.
By comparing these numbers, metrics and indexes can be developed to review the project's health.
- Scheduled Variance: BCWP - BCWS
A comparison of the amount of work performed during a given period of time to what was scheduled to be performed. A negative variance indicates the project is behind schedule.
- Cost Variance: BCWP - ACWP
A comparison of the budgeted cost of work performed with the actual cost. A negative variance means the project is over budget.
- Schedule Performance Index (SPI): BCWP / BCWS
A SPI index of less than 1 indicates the project is behind schedule.
- Cost Performance Index (CPI): BCWP / ACWP
A CPI index of less than 1 indicates the project is over budget.
- Cost Schedule Index (CSI): CPI x SPI
This is a measure of an off-schedule and or over-budget project's likelihood of recovery. The greater the CSI index is from 1.0, the less likely a recovery is.
Both the Cost Performance Index and the Schedule Performance Index are statistically accurate indicators of final cost results.
- Experience Tracker
- Register for a Demo Today