Earned Value Management
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Building Blocks of Earned Value Analysis

In addition to more accurate project status assessment, EVM makes it easy for a project manager to analyze both schedule and cost performance in a variety of ways. Using a limited set of basic task information, it is possible not only to determine how a project has been performing, but to predict future performance trends as well.

Basis for Earned Value Analysis:
  • Budget at Completion (BAC) = Overall approved budget for a task.

  • Actual Costs (AC) = Total amount spent on a task up to the current date.

  • Percent Complete = Task progress, related as either EV/BAC, or simply physical progress shown by the fill of the task bar.

Earned Value Contract Review

Once these three measurements have been established, the following calculations can be performed:
  • Earned Value (EV) = BAC x Percent Complete. The budgeted cost of completed work as of the current date.

  • Planned Value (PV) = The point along the time-phased budget that crosses the current date. Shows the budgeted cost of scheduled work as of the current date.

View detailed EVM data in actual dollars as part of a presentation schedule...
Earned Value Management Image


Earned Value Management Basic Concepts

 



...or use an easy-to-read DataGraph for at-a-glance visual analysis of project trends

For further reading, try this free Earned Value Management eBook:

Successfully Presenting Earned Value is a free e-book which will help you learn to implement and present Earned Value schedules.  It offers both an explanation of Earned Value Management principles, and step-by-step instructions.  This e-book is offered at no charge.  After reviewing it, you may be interested in downloading our Milestones Professional software.  Milestones Professional was used to produce the presentation-ready Earned Value reports shown in the e-book and can be used to make schedules in many formats, including Gantt charts, Milestone charts, Summary charts, Resource Charts and more. 

All example schedules on this website were made with Milestones Professional Project Management Software.