Join Aileen Ellis for an in-depth discussion in this video System upgrade project EVM summary, part of Project Management: Calculating Earned Value.
That was a lot of calculations for one project.…I hope you found this example useful.…When I look at an Earned Value chart,…I always begin by looking at the Earned Value.…If we compare the Earned Value, the red line,…to the Planned Value, the blue line,…we see that the Earned Value line is lower.…This means we have completed less work than planned.…We are behind schedule.…The difference between the two lines shows…the schedule variance.…
Next, I look at the Earned Value line again,…but this time I compare it to the Actual Cost line,…the green line.…We see that the Earned Value line is lower…than the Actual Cost line.…This tells me that I have less work complete…than I should for the money spent.…We are running over budget.…The difference between the two lines is…the Cost Variance.…The next thing I look at, I look at the BAC…meaning the Budget at Completion…and the EAC, the Estimate at Completion.…
I see that my BAC is lower than my EAC.…This tells me I expect to overrun.…The difference between these two numbers is my VAC,…
Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- What is earned value management?
- Who uses EVM?
- Determining budget at completion, planned value, and earned value
- Calculating schedule and cost variance as well as schedule and cost performance index
- Forecasting future costs
- Computing TCPI for project success
- Exploring limitations of EVM<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.