Name Budget at Completion (BAC) Planned Value (PV) Earned Value (EV) Actual Cost (AC) Formula No formula; it’s the project budget PV = Sum of the authorized budget for the work to be completed by a point in time. EV = Sum of the planned value of work that is completed to a point in time. No formula; it’s what you have actually spent on the project SPI = EV PV SV = EV – PV What it Says Why You Use It As of today, what is the value of the work actually accomplished? How much you’ve actually spent so far EV lets you translate how much work the team has finished into a dollar value. What you spend doesn’t always match the value you get! To figure out whether you’ve delivered the value your schedule said you would This puts a dollar value on exactly how far ahead or behind schedule you are To figure out whether you’re spending faster or slower than planned. Same as CPI. How much money you’ll spend on the project The value of what your schedule says you should have completed by today Cost Performance Index (CPI) Cumulative Cost Performance Index c (CPI ) Cost Variance (CV) CPI = EV AC c c CPI = EV c AC We are progressing at ___ % of the rate originally planned How much ahead or behind schedule you are We are getting $_____ worth of work for every $1 spent The same as CPI, only for the project to-date CV = EV – AC How much over or under budget Estimate at Completion (EAC) EAC = AC + Bottom-up ETC (fundamentally flawed) As of now, how much do we expect the total project to cost? Schedule Performance Index (SPI) Schedule Variance (SV) To tell the sponsor the total amount of value they’re getting for the project To figure out what value your plan says you should have delivered so far Your sponsor is always most interested in the bottom-line! To understand if we need to seek more funding or make other changes to get costs back in line. EAC = BAC (var typical) c CPI EAC = AC + BAC – EV (var atypical) c Estimate to Complete (ETC) Variance at Completion (VAC) To-Complete Performance Index (TCPI) c EAC = AC + (BAC – EV) / (CPI x SPI ) ETC = EAC – AC VAC = BAC – EAC TCPI = (BAC – EV)/(BAC – AC) How much more will the project cost? As of now, how much over or under do we expect the total project cost to be? What cost performance is required to meet our budget? Advanced Project Management, by Andy Kaufman, PMP Copyright © 2013, Institute for Leadership Excellence & Development Inc. You need to make sure there is adequate funding Your sponsor is always most interested in the bottom-line! Provides a sanity check for how viable your BAC really is. If not viable, the PM develops a forecasted EAC for approval. http://www.nanacast.com/Advanced-Project-Management http://www.PeopleAndProjectsPodcast.com Name Budget at Completion (BAC) Planned Value (PV) Earned Value (EV) Actual Cost (AC) What it Says How much money you’ll spend on the project The value of what your schedule says you should have completed by today. As of today, what is the value of the work actually accomplished? How much you’ve actually spent so far Schedule Performance Index (SPI) Cumulative Schedule Performance Index (SPIc) We are progressing at ___ % of the rate originally planned Represents the cumulative SPI of the project at the point the measurement is taken Schedule Variance (SV) How much ahead or behind schedule you are Cost Performance Index We are getting $_____ worth of work (CPI) for every $1 spent. Cumulative Cost The cumulative CPI of the project at c Performance Index (CPI ) the point the measurement is taken Cost Variance (CV) How much over or under budget Estimate at Completion (EAC) Estimate to Complete (ETC) Variance at Completion (VAC) To-Complete Performance Index (TCPI) As of now, how much do we expect the total project to cost? How much more will the project cost? As of now, how much over or under do we expect the total project cost to be? What cost performance is required to meet our budget? Advanced Project Management, by Andy Kaufman, PMP Copyright © 2013, Institute for Leadership Excellence & Development Inc. Why You Use It To tell the sponsor the total amount of value they’re getting for the project To figure out what value your plan says you should have delivered so far EV lets you translate how much work the team has finished into a dollar value What you spend doesn’t always match the value you get! To figure out whether you’ve delivered the value your schedule said you would Where SPI can be at one point in time (e.g. for a specific month), SPIc is for the project to-date. This puts a dollar value on exactly how far ahead or behind schedule you are To figure out whether you’re spending faster or slower than planned. Where CPI can be at one point in time (e.g. for a specific month), CPIc is for the project to-date. Your sponsor is always most interested in the bottom-line! To understand if we need to seek more funding or make other changes to get costs back in line. You need to make sure there is adequate funding Your sponsor is always most interested in the bottom-line! Provides a sanity check for how viable your BAC really is. If not viable, the PM develops a forecasted EAC for approval. http://www.nanacast.com/Advanced-Project-Management http://www.PeopleAndProjectsPodcast.com