Join Aileen Ellis for an in-depth discussion in this video Calculating BAC, PV, EV, and AC, part of Project Management: Calculating Earned Value.
Let's take another example.…In this example, we have a system upgrade project.…This table is a typical earned value representation…of a project.…Let's interpret the table one column at a time.…It's important to see the note at the bottom.…All the numbers are cumulative numbers.…The first column is months.…We can see that the project plan is for…a four month project.…The next column is the Planned Value.…
This column tells us how much work is planned…to be accomplished each month cumulatively.…At the end of Month 1 we should have $100,000 worth…of work complete.…At the end of Month 2, $200,000 worth of work complete.…At the end of Month 3, $300,000 worth of work complete.…And at the end of Month 4 or for the whole project,…we should have $400,000 worth of work complete.…
The key word there is should,…or a key word would be the word planned.…The next column is the Earned Value.…Earned Value is a measure of how much work is complete.…We can see at the end of Month 1 we have $30,000 worth…of work complete.…We can see at the end of Month 2…
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- Identify the fundamentals of calculating budget at completion, planned value, earned value, and actual cost.
- Recognize the steps to forecast estimate at completion.
- Determine the steps in calculating BAC, PV, EV, and AC.
- Break down how to calculate CV and CPI.
- Examine the elements of forecasting EAC.
- Explore the steps involved in forecasting ETC and VAC.