1. Earned Value Analysis Training
GPA – Confidential

2. 2
Earned Value Analysis Training
Contents
Context
What is EVA
Why Use It?
How will we use it
EVA examples
EVA and MSP
What next?
Who to contact
GPA – Confidential

3. 3
Earned Value Analysis Training
Context
GPA – Confidential

4. 4
Earned Value Analysis Training
GPA – Confidential
PM
Technique
• Earned Value Analysis (EVA) is a
project management technique for
monitoring the cost and schedule
performance of projects

5. 5
Earned Value Analysis Training
GPA – Confidential
PM
Technique
✔ PMI
• Earned Value Analysis (EVA) is a
project management technique for
monitoring the cost and schedule
performance of projects
• Used within PMI but not exclusive to it

6. 6
Earned Value Analysis Training
GPA – Confidential
PM
Technique
✔ PMI
• Earned Value Analysis (EVA) is a
project management technique for
monitoring the cost and schedule
performance of projects
• Used within PMI but not exclusive to it
• Compares actual and budgeted
resources

7. 7
Earned Value Analysis Training
GPA – Confidential
PM
Technique
Cost Schedule
Cost Status
Schedule Status
✔ PMI
• Earned Value Analysis (EVA) is a
project management technique for
monitoring the cost and schedule
performance of projects
• Used within PMI but not exclusive to it
• Compares actual and budgeted
resources
• Works by comparing project actuals
and budgeted resources expenditures
to show variance from original project
plan in terms of cost and schedule.

8. 8
Earned Value Analysis Training
GPA – Confidential
PM
Technique
Cost Schedule
Monitor
PerformanceCost Status
Schedule Status
✔ PMI
• Earned Value Analysis (EVA) is a
project management technique for
monitoring the cost and schedule
performance of projects
• Used within PMI but not exclusive to it
• Compares actual and budgeted
resources
• Works by comparing project actuals
and budgeted resources expenditures
to show variance from original project
plan in terms of cost and schedule.
• MSP supports EVA but the technique
can be applied without software

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Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it has a budget of £10

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Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.

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Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure wasn’t forecast until September

12. 12
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure was not forecast until September
•20% of the budget to last the remaining two thirds of the project!

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Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure was not forecast until September
•20% of the budget to last the remaining two thirds of the project!
?

14. 14
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure was not forecast until September
•20% of the budget to last the remaining two thirds of the project!
?
Is this a problem?

15. 15
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure was not forecast until September
•20% of the budget to last the remaining two thirds of the project!
?
Is this a problem?
Two possible scenarios
Scenario 1 – Over Budget. Planned amount of work, Greater costs
Scenario 2 – Ahead of Schedule. Planned costs, Faster completion

16. 16
Earned Value Analysis Training
GPA – Confidential
Why Use EVA?
Consider the following project
•In April it had a budget of £10
•By June 80% of the budget has been spent.
•This level of expenditure was not forecast until September
•20% of the budget to last the remaining two thirds of the project!
?
Is this a problem?
Two possible scenarios
Scenario 1 – Over Budget. Planned amount of work, Greater costs
Scenario 2 – Ahead of Schedule. Planned costs, Faster completion
EVA gives the Project manager the technique to see which Scenario is valid

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Earned Value Analysis Training
EVA lets the Project Manager know if the project is
•On budget using Cost Variance
•On schedule using Schedule Variance
EVA Establishes
GPA – Confidential
Cost Variance (CV)Cost Variance (CV) The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on having lost or saved money

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Earned Value Analysis Training
EVA lets the Project Manager know if the project is
•On budget using Cost Variance
•On schedule using Schedule Variance
EVA Establishes
GPA – Confidential
Cost Variance (CV)Cost Variance (CV)
Schedule Variance
(SV)
Schedule Variance
(SV)
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule

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Earned Value Analysis Training
EVA lets the Project Manager know if the project is
•On budget using Cost Variance
•On schedule using Schedule Variance
•The estimatedcost to complete the project
EVA Establishes
GPA – Confidential
Cost Variance (CV)Cost Variance (CV)
Schedule Variance
(SV)
Schedule Variance
(SV)
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule
Estimate at
Completion (EAC)
Estimate at
Completion (EAC)
How much it will cost in total to complete the task if current spending
patterns are maintained
How much it will cost in total to complete the task if current spending
patterns are maintained

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Earned Value Analysis Training
To carry out EVA the following information is needed
GPA – Confidential
Planned Value (PV)Planned Value (PV)
Actual Cost (AC)Actual Cost (AC)
Total budget for a specific Work Breakdown StructureTotal budget for a specific Work Breakdown Structure
Amount it actually cost to complete a specific WBS item during a specific
period
Amount it actually cost to complete a specific WBS item during a specific
period
Earned Value (EV)Earned Value (EV) Approved budget for actual work on a given WBS item during a specific
period
Approved budget for actual work on a given WBS item during a specific
period
BCWSBCWS Budgeted cost of work scheduledBudgeted cost of work scheduled
ACWPACWP Actual cost of work performedActual cost of work performed

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Earned Value Analysis Training
GPA – Confidential
Cost Variance (CV)Cost Variance (CV) The difference between what you planned to spend and what you actually
spent based on having lost or saved money
The difference between what you planned to spend and what you actually
spent based on having lost or saved money
Cost Variance (CV) = Earned Value (EV) – Actual Cost (AC)
Cost Variance (CV) is a measure of project performance and indicates how much over or under budget a project is.
A positive figure means the project is under budget
No difference means the project is on budget
A negative figure means the project is over budget
Cost Variance can also be articulated as the following convenient indicators
Cost Variance Percentage (CV%) = Cost Variance (CV) / Earned Value (EV) * 100
Cost Variance % indicates how much over or under budget the project is in terms of percentage
Cost Performance Indicator (CPI) = Earned Value (EV) / Actual Cost (AC)
Cost Performance Indicator is an index showing the efficiency of utilisation of the resource on the project

22. 22
Earned Value Analysis Training
GPA – Confidential
Schedule Variance (SV) = Earned Value (EV) – Planned Value (PV)
Schedule Variance (SV) is a measure of project performance and indicates how much ahead of or behind schedule a project is.
A positive figure means the project is ahead of schedule
No difference means the project is on schedule
A negative figure means the project is behind schedule
Schedule Variance can also be articulated as the following convenient indicators
Schedule Variance Percentage (SV%) = Schedule Variance (SV) / Planned Value (PV) *
100
Schedule Variance % indicates how much ahead or behind schedule a project is in terms of percentage
Schedule Performance Indicator (SPI) = Earned Value (EV) / Planned Value (PV)
Schedule Performance Indicator is an index showing the efficiency of time utilised on the project
Schedule Variance
(SV)
Schedule Variance
(SV)
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule
The difference between what you planned to spend and what you actually
spent based on being ahead of or behind schedule

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Earned Value Analysis Training
GPA – Confidential
Estimate At Completion = Actual Cost (AC) / Earned Value (EV) * Total Budget
Estimate At Completion (EAC) is the estimated cost of the project at the end of the project
Estimate at
Completion (EAC)
Estimate at
Completion (EAC)
How much it will cost in total to complete the task if current spending
patterns are maintained
How much it will cost in total to complete the task if current spending
patterns are maintained

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Earned Value Analysis Training
GPA – Confidential
A Practical Example
The Lord of the Manor requires 20 family portraits be painted and ready for the next Ball.
The Lord of the Manor has commissioned a painter to paint the portraits and will pay him £150
a day.
The painter estimates that each portrait will take 20 working days to complete.
Today it is the 30th April 2013.
The Ball takes place on the 8th
November 2014.

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Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
• The project starts on the 30th April
• The Lord of the Manor asks for a status update on the 1st September
• By the 1st of September the original project plan showed that the painter should have completed 4 portraits, each taking 20 days at a cost of £150 a
day. Equating to a cost of £3,000 per portrait

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Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
• The project starts on the 30th April
• The Lord of the Manor asks for a status update on the 1st September
• By the 1st of September the original project plan showed that the painter should have completed 4 portraits, each taking 20 days at a cost of £150 a
day. Equating to a cost of £3,000 per portrait
The Planned Value is calculated as follows.
Planned Value (PV) = £3,000 * 4 portraits = £12,000

27. 27
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
• The project starts on the 30th April
• The Lord of the Manor asks for a status update on the 1st September
• By the 1st of September the original project plan showed that the painter should have completed 4 portraits, each taking 20 days at a cost of £150 a
day. Equating to a cost of £3,000 per portrait
The Planned Value is calculated as follows
Planned Value (PV) = £3,000 * 4 portraits = £12,000
However, the painter has only completed 3 portraits.
The Earned Value is calculated as follows
Earned Value (EV) = £3,000 * 3 portraits = £9,000

28. 28
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
• The project starts on the 30th April
• The Lord of the Manor asks for a status update on the 1st September
• By the 1st of September the original project plan showed that the painter should have completed 4 portraits, each taking 20 days at a cost of £150 a
day. Equating to a cost of £3,000 per portrait
The Planned Value is calculated as follows
Planned Value (PV) = £3,000 * 4 portraits = £12,000
However, the painter has only completed 3 portraits.
The Earned Value is calculated as follows
Earned Value (EV) = £3,000 * 3 portraits = £9,000
The painter only completed 2 portraits as two of the portraits took 30 days to finish and not 20 days as originally planned. Representing a 50% increase on
the original estimate of £3,000 per portrait
The Actual Cost is calculated as follows
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000

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Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
From this the Cost Variance (CV), Cost Variance % (CV%) and Cost Variance Indicator (CVI) can be calculated

30. 30
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
From this the Cost Variance (CV), Cost Variance % (CV%) and Cost Variance Indicator (CVI) can be calculated
Cost Variance (CV) = EV £9,000 – AC £12,000 = -£3,000

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Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
From this the Cost Variance (CV), Cost Variance Percentage (CV%) and Cost Variance Indicator (CVI) can be calculated
Cost Variance (CV) = EV £9,000 – AC £12,000 = -£3,000
Cost Variance Percentage (CV%) = CV -£3,000 / EV £9,000 * 100 = -33%

32. 32
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
From this the Cost Variance (CV), Cost Variance Percentage (CV%) can be calculated
Cost Variance (CV) = EV £9,000 – AC £12,000 = -£3,000
Cost Variance Percentage (CV%) = CV -£3,000 / EV £9,000 * 100 = -33%
In real terms this means the project to date has cost £3,000 more than the Lord of the Manor planned to pay and is 33% over budget

33. 33
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
Cost Variance (CV) = EV £9,000 – AC £12,000 = -£3,000
Cost Variance Percentage (CV%) = CV -£3,000 / EV £9,000 * 100 = -33%
The Schedule Variance (SV) and Schedule Variance Percentage (SV%) can now be derived
Schedule Variance (SV) = EV £9,000 – PV £12,000 = -£3,000
Schedule Variance Percentage (SV%) = SV £9,000 – PV £12,000 * 100 = 25%

34. 34
Earned Value Analysis Training
GPA – Confidential
Start 30th
April
Start 30th
April
End 8th
Nov
End 8th
Nov
Update
1st
Sept
Update
1st
Sept
Planned Value (PV) = £3,000 * 4 portraits = £12,000
Earned Value (EV) = £3,000 * 3 portraits = £9,000
Actual Cost (AC) = £3,000 * 1 portrait + £4,500 * 2 portraits = £12,000
Cost Variance (CV) = EV £9,000 – AC £12,000 = -£3,000
Cost Variance Percentage (CV%) = CV -£3,000 / EV £9,000 * 100 = -33%
The Schedule Variance (SV) and Schedule Variance Percentage (SV%) can now be derived
Schedule Variance (SV) = EV £9,000 – PV £12,000 = -£3,000
Schedule Variance Percentage (SV%) = SV £9,000 – PV £12,000 * 100 = 25%
The painter has done £3,000 less worth of work than the Lord of the Manor had expected at this point and is 25% behind schedule.