Earn Value Management determine the health of the project. 3 things are the main component of EVM.
1.Status - Delay of the project
2.Progress- run rate of the project
3.Forecast
In this every thing is calculated in Money
Three Key Variables
Planned Value : PV - Budgeted cost for the work that should be done at a given time.
Earned Value : EV : Budgeted amount for the work that has been accomplished ( measured at the same point in time as PV)
Actual cost : AC : Actual or total cost incurred in doing the work thus far.
Example of Earned Value Management
Project : Build a privacy fence at a cost of $100 per section
BAC - Budgeted at completion
VAC- Variance at completion
1.Status - Delay of the project
2.Progress- run rate of the project
3.Forecast
In this every thing is calculated in Money
Three Key Variables
Planned Value : PV - Budgeted cost for the work that should be done at a given time.
Earned Value : EV : Budgeted amount for the work that has been accomplished ( measured at the same point in time as PV)
Actual cost : AC : Actual or total cost incurred in doing the work thus far.
Example of Earned Value Management
Project : Build a privacy fence at a cost of $100 per section
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| Cost Variance : EV less AC = 500-650=$150 (cost overrun) Schedule variance : EV less PV = 500-600=-$100 ( behind schedule ) | ||||||||||||||
BAC - Budgeted at completion
VAC- Variance at completion
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