1. What is Earned Value Management?

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

2. How Does the Calculator 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 planned budget)

Explanation: EV measures what the project has actually earned based on work completed compared to the planned budget.

3. Importance of EV Calculation

Details: EV is fundamental to project performance measurement. It enables calculation of key metrics like Cost Variance (CV), Schedule Variance (SV), Cost Performance Index (CPI), and Schedule Performance Index (SPI).

4. Using the Calculator

Tips: Enter percentage complete (0-100%) and the total project budget (BAC). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between EV and Actual Cost (AC)?
A: EV measures value of work performed, while AC measures actual money spent. Comparing them shows cost efficiency.

Q2: How is % complete determined?
A: % complete can be based on physical completion, earned value techniques, or other objective measures defined in the project plan.

Q3: What are typical EV thresholds for project health?
A: Generally, EV should be close to Planned Value (PV). Significant variances (typically >10%) may indicate problems.

Q4: Can EV be greater than BAC?
A: Normally no, unless the project scope has increased without corresponding BAC adjustment.

Q5: How often should EV be calculated?
A: Typically at regular reporting intervals (weekly, monthly) or at major milestones.