1. What is Earned Value Management?

Earned Value Management (EVM) is a project management technique that integrates scope, schedule, and cost to measure project performance and progress. The Earned Value (EV) represents the value of work actually performed.

2. How Does the EVM Calculation Work?

The calculator uses the basic EVM formula:

Where:

• \( EV \) — Earned Value (dollar value of work completed)
• \( \%\ complete \) — Percentage of project work completed
• \( BAC \) — Budget at Completion (total budget for the project)

Explanation: This fundamental EVM formula calculates how much value has been earned based on the percentage of work completed against the total project budget.

3. Importance of EVM Calculation

Details: EVM provides objective measurements of project performance, helps identify variances from the project plan early, and enables better forecasting of final project costs and completion dates.

4. Using the Calculator

Tips: Enter the percentage complete (0-100%) and the total project budget (BAC). The calculator will compute the Earned Value in dollars.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between EV and actual cost?
A: EV measures the value of work performed, while actual cost measures what was actually spent. Comparing them shows cost performance (CPI).

Q2: How is % complete determined?
A: % complete can be measured through various methods like 0/100, 50/50, or weighted milestones depending on project needs.

Q3: What are typical EVM metrics?
A: Key metrics include Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), and Cost Performance Index (CPI).

Q4: When should EVM be used?
A: EVM is most valuable for complex projects with defined scopes, schedules, and budgets, typically in construction, defense, and IT projects.

Q5: What are limitations of basic EVM?
A: Basic EVM doesn't account for quality or risk, and depends on accurate % complete estimates and baseline budgets.